Distribution of state-run enterprises' profits discussed by Supreme Council

03/23/16 11:22

Distribution of state-run enterprises' profits discussed by Supreme Council

MPs are proposing to fix a profit share which state-run enterprises must contribute to the budget
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Tiraspol, 23 March. /Novosti Pridnestrovya/. Supreme Council deputies discussed the idea of fixing the profit share of state-run unitary enterprises (GUPs), which are to be assigned to the budget. People's deputy Oleg Vasilaty is proposing to legally specify the mechanism of distributing state-enterprises' net profit.

According to him, the profit of GUPs should be deemed, first of all, as a revenue source of the budget system.

Vasilaty is proposing to consider a norm stipulating that «the law on republican budget or a decision on local budget may introduce a special procedure of distribution and contribution to the budget of the net profit of a state-run enterprise». According to him, it is necessary to clearly articulate a profit ratio which GUPs must allocate to the budget and a profit share that remain at an enterprise's disposal.

At the same time, according to the minister of justice, Olga Zvarych, «the proposed mechanism of profit allocation may decrease the efficiency of the management of GUPs». She believes that passing the draft law will limit the right of the owner of a state-run enterprise, who depending on specific instances determines balance between budget contributions and investment to GUP development.

Lawmakers has approved Vailaty's bill, but stressed the need to finalise it. Thus, people's deputy Khorznan has agreed to the initiative, but called for the careful wording of amendments to the law on state-run unitary enterprises.

«The enterprise's viability depends on a profit contribution share. This should be taken into account," said Khorzhan.

 

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