State Capital Budget Revenue Up 39.8% in First Seven Months
In the first seven months of 2026, China's state capital budget revenue reached RMB 257.5 billion, up 39.8% year on year, driven by higher profit remittance rates from central enterprises introduced in late 2025 and similar provincial increases. Central remittance rates remain at 35%, 30%, 20%, and exempt tiers. Local governments, including Anhui and Fujian, have strengthened collection mechanisms. The 2025 revenue base rose to about RMB 854.7 billion, with 67.2% transferred to the general public budget.
In the first seven months of 2026, national state capital budget revenue reached RMB 257.5 billion, up 39.8% year on year, with both central and local government-level revenue posting significant growth. According to the State Council's report on budget execution since 2026, released on the National People's Congress website, the increase was mainly driven by the higher remittance rate for central state-owned enterprise capital income introduced in the second half of 2025, as well as similar rate hikes in some provinces.
In 2026, the remittance rates for central state capital operating income after tax continue to apply in four tiers: 35%, 30%, 20%, and exemption. Profit remittance rates for resource-based enterprises such as petroleum, petrochemical, power, telecommunications, and coal have been raised by 15 percentage points. For general competitive enterprises including tobacco, nonferrous and ferrous metals, transportation, electronics, trade, and construction, as well as defense enterprises, converted research institutes, China Post, and China State Railway Group, the remittance rates have been increased by 10 percentage points.
At the local level, collection mechanisms continue to improve. Anhui Province has introduced a "three-payment" management mechanism for state capital returns, accelerating treasury receipts through advance payments, supplemented by controls on overdue payments and a special mechanism for extraordinary returns. Fujian Province issued provincial measures for the collection and management of state-owned asset returns in September 2025, requiring enterprises to remit half of their budgeted returns by March 31 each year to speed up revenue collection.
The preparation of the state capital budget follows specific rules: there is a time lag between profit generation and actual remittance, with 2026 collections covering state capital returns realized by state-owned enterprises in 2025. The budget strictly adheres to the principle of balance and does not allow deficits, with year-end surpluses carried forward to the following year as stipulated. The total profit of national state-owned enterprises in 2025 serves as a fixed base, subject only to minor adjustments from audit reclassifications. The revenue-boosting effect of the remittance rate increase initiated in 2025 has already been incorporated into the 2026 budget plan, with no new policy increments expected. In 2025, national state capital budget revenue rose from RMB 670 billion to approximately RMB 850 billion, significantly raising the base.
During the 14th Five-Year Plan period, national state capital budget revenue grew from RMB 518 billion to RMB 854.7 billion. In 2025, state capital budget revenue stood at RMB 854.7 billion, with RMB 574.1 billion transferred to the general public budget, a transfer ratio of 67.2%. However, this transfer amount represented only a small share of the year's national general public budget revenue of RMB 21.6 trillion. By the end of 2025, central state-owned enterprises' total assets exceeded RMB 95 trillion, and combined with local state-owned enterprise assets, the national total surpassed RMB 400 trillion. In 2025, central enterprises achieved total profits of RMB 2.5 trillion, while national state-owned enterprises recorded total profits exceeding RMB 4 trillion.