The LED industry is trapped in “subsidy corruption”: Why does the subsidy become “Tang Tang Meat”?

Recently, financial subsidies have been frequent.

First, Li Xinghua, director of the Science and Technology Department of Guangdong Province, was investigated for LED subsidies. As a result of mastering the power of industrial subsidy funds and research funding, the science and technology information system has become a high-risk area for corruption, mainly for all kinds of fraud. According to the report of the National Audit Office, Guangdong Xuelaite Optoelectronics Technology Co., Ltd. defrauded 3.455 million yuan.

Second, Chen Zhubing, former director of the General Division of the Enterprise Department of the Ministry of Finance, was accused of using the state-owned funds management rights in his hands. In the past 10 years, he alone received or received more than 24 million yuan of property. Enterprises that apply for state-specific funds must use 20% of the funds allocated as rebate officials to become bribery officials.

Third, in June 2013, the National Audit Office announced part of the audit results of the energy conservation subsidy project. Gree, TC L and other 8 companies cheated more than 90 million yuan, but the amount was huge but was still interpreted by experts as the tip of the iceberg.

Why did the financial subsidy become "Tang Tang Meat"? Financial subsidies are financial compensation provided to businesses or individuals in order to achieve specific political, economic, and social goals. Mainly for a certain period of time to produce or operate certain enterprises whose sales price is lower than the cost or give enterprises and consumers economic compensation for raising the selling price of goods. Its purpose is to support the development of production, adjust the relationship between supply and demand, stabilize market prices, and safeguard the interests of producers and consumers.

From the government's point of view, payment is unpaid; from the perspective of receiving subsidies, it means an increase in real income. It can be said that financial subsidies are money that is squeezed out of the teeth for some purpose. However, once the financial subsidies are targeted by corrupt elements, they become “subsidy corruption”. It was actually called "fiscal opium" by the media. For example, the first issue of the first edition of the First Financial Daily on August 2 is “The Behind LED Corruption: Eat “Financial Opium” Steps in Photovoltaic.” "Opium Finance" is a special concept in China's modern history and a shame. I did not expect the media to use it now, which reflects the helplessness and anger of the media reporters on "subsidizing corruption."

Of course, "subsidy corruption" is not a few pieces in this area. "Running money into the market" also refers to a variety of subsidies, which also implies a large number of "subsidy corruption." After deducting the cost of the "running department", how much can you really use each business? All localities use the network of local Beijing-based offices to run “hook-ups” in various ministries and commissions to achieve the purpose of funding the project. Not only the “above” has long been “unpredictable”, but also the “below” is a measure of this. An important standard for cadres' ability and performance. The root cause of the “running department money” is the arbitrariness of fiscal expenditure caused by “power sectorization” and “departmental interest”. Regrettably, the Ministry of Finance proposed to undergo major surgery on the transfer payment system, which was actually opposed by some ministries. Do you have to wait until the "big things" to agree to the reform?

If you really want to use transfer payments, you should also actively improve them with reference to international practices. Under the guidance of the principle of “fairness, priority, and efficiency”, China’s current transfer payments should be based on general subsidies, supplemented by special subsidies. The general subsidy does not give the local government the specific direction of use of funds, but it is a supplement to the government's financial resources. The lower-level government has greater control over this fund. The main purpose is to balance the local budget and meet the local functions. Basic expenditures are needed to achieve a minimum level of public service. General transfer payments are more representative of fairness. Since the special transfer payment stipulates the use of the transfer payment funds, some even attach some conditions, and the lower level government can only use it in the specified items. Therefore, the special transfer payment can better reflect the policy intentions of the higher level government and implement the industrial policy. It can effectively allocate resources to ensure cost-effective operation. However, from the perspective of fiscal practice, special transfer payments are the easiest to become “corrupted nests”.

Therefore, the subsidies used for industrial development in special transfer payments should be reduced or exempted as much as possible, and the transfer payments with more human factors should be used less. Tax reduction and exemption is a measure taken to solve the specific problems that cannot be solved when the tax rate is levied according to the tax system. It is a tax incentive for taxpayers in a certain period of time, and it is also a combination of tax uniformity and flexibility. The specific embodiment.

From the government's point of view, the implementation of tax exemption means a reduction in the government's disposable fiscal revenue within a certain period of time and scope. From the taxpayer's point of view, the tax exemption policy means that under the same resource use situation, the taxpayer's profit increases, the taxpayer will increase the input, increase the working time or change the investment method to obtain more comparative benefits. . This is the economic stimulus adjustment effect of tax reduction and exemption. The biggest feature of tax reduction and exemption is wide coverage, fairness and justice. The VAT and business tax on the monthly income of small and micro enterprises, which was implemented on August 1 this year, is less than 20,000, which makes some small and micro enterprises can reduce the burden of nearly 10,000 yuan a year.

(The author is a professor at Zhongnan University of Economics and Law and deputy director of the Hubei Provincial Bureau of Statistics, Ye Qing)

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