Up to 35%, the proportion of profits from state-owned enterprises contributed to the finance has increased! Central government budget disclosure in 2026

Recently, the Ministry of Finance announced the 2026 central fiscal budget and provided explanations regarding the 2026 central general public budget revenue estimates, central government fund budget, and central state-owned capital operating budget, among others.

The Ministry of Finance’s “Explanation on the 2026 Central State-Owned Capital Operating Budget” disclosed that the revenue collection ratio of state-owned wholly-owned enterprises (non-financial) after tax profits in 2026 will be divided into four categories, with the highest collection ratio being 35%, significantly higher than the maximum collection ratio of 25% in 2025. Except for policy-oriented enterprises exempt from state-owned capital income, the collection ratios for various enterprises have overall increased.

In addition, according to the Ministry of Finance’s “Explanation on the 2026 Central General Public Budget Revenue Estimates,” the budgeted amount for securities transaction stamp duty in 2026 is expected to grow by 0.7% compared to the executed amount in 2025; the vehicle purchase tax budgeted amount is expected to grow by 22.2% compared to the executed amount in 2025; and the budgeted amount for confiscated income is expected to decrease by 16.8% compared to the executed amount in 2025.

Increase in the proportion of central enterprise profits to be remitted to the finance department

According to the Ministry of Finance’s “Explanation on the 2026 Central State-Owned Capital Operating Budget,” the budgeted income from central state-owned capital operations in 2026 is estimated at 371.632 billion yuan, with profit income of 352.233 billion yuan. Among them, the collection ratio of state-owned wholly-owned enterprises (non-financial) after tax profits will mainly be divided into four categories:

The first category includes tobacco enterprises and resource-type enterprises such as oil and petrochemicals, electricity, telecommunications, and coal, with a collection ratio of 35%. The remitted income in 2026 is estimated at 270.06 billion yuan, a decrease of 5.4%.

The second category includes general competitive enterprises such as non-ferrous and ferrous metallurgy mining, transportation, electronics, trade, and construction with a collection ratio of 30%. The remitted income in 2026 is estimated at 63.317 billion yuan, a decrease of 7.8%.

The third category includes military enterprises, reformed research institutes, China Post Group Co., Ltd., China National Railway Group Co., Ltd., Beidahuang Agricultural Reclamation Group Co., Ltd., central cultural enterprises, and enterprises affiliated with central departments, with a collection ratio of 20%. The remitted income in 2026 is estimated at 17.856 billion yuan, a decrease of 9.8%.

The fourth category consists of policy-oriented enterprises, which are exempt from state-owned capital income. State-owned sole proprietorship enterprises that meet the standards for small and micro enterprises and have profits less than 100,000 yuan will also be exempt from the policy. In addition, financial enterprises will have a profit income of 1 billion yuan.

In the past year, the revenue from the central state-owned capital operating budget reached 390.274 billion yuan, an increase of 73.3%, mainly due to the Ministry of Finance raising the collection ratio of state-owned capital income from central enterprises, leading to an increase in revenue. In the new year, the Ministry of Finance has clearly stated in the 2026 budget draft report that it will “raise the collection ratio of state-owned capital income.”

This year, the classification of the collection ratio of central enterprise after-tax profits has been adjusted from five categories last year to four categories. Except for policy-oriented enterprises exempt from state-owned capital income, the collection ratios for various enterprises have overall increased. For example, the oil and petrochemical, electricity, telecommunications, and coal resource-type enterprises, which were classified as the second category with a 20% collection ratio last year, will be classified as the first category in 2026 along with tobacco enterprises, with a 35% collection ratio.

Securities transaction stamp duty budget continues to grow

In 2026, the estimated revenue for the central general public budget is expected to grow by 1.8% compared to the executed amount in the previous year. From the main tax categories, the Ministry of Finance’s “Explanation on the 2026 Central General Public Budget Revenue Estimates” shows that the budgeted amounts for domestic value-added tax, domestic consumption tax, corporate income tax, and individual income tax in 2026 are expected to grow by 3.7%, 0.9%, 1.1%, and 2.4% respectively compared to the executed amounts in 2025.

After a significant year-on-year increase last year, the budgeted amount for securities transaction stamp duty in 2026 is expected to grow by 0.7% compared to the executed amount in 2025. The Ministry of Finance pointed out that this budget amount is “mainly calculated based on the expected trading volume of the stock market.”

Regarding the vehicle purchase tax budget, which is expected to grow by 22.2% compared to the executed amount in 2025, the Ministry of Finance explained that this is mainly based on the expected growth in automobile sales and factors such as the restoration of half-rate vehicle purchase tax for new energy vehicles starting from January 1, 2026.

From the perspective of non-tax revenue, the budgeted amount for confiscated income is expected to decrease by 16.8% compared to the executed amount in 2025, mainly based on the expected situation of confiscated income from cases handled by customs, tax, and judicial departments; the budgeted income from the paid use of state-owned resources (assets) is expected to decrease by 46.3% compared to the executed amount in 2025, mainly due to a significant increase in one-time income last year and a significant increase in funds transferred to the government fund budget for special treasury bond interest payments.

Significant increase in balanced transfer payments

The Ministry of Finance’s “Explanation on the 2026 Central Transfer Payments to Localities Budget” shows that the budgeted amount for central transfer payments to localities in 2026 is 10,415 billion yuan, an increase of 2.2% compared to the executed amount in 2025. Among them, the budgeted amount for general transfer payments in 2026 is 9,477.922 billion yuan, an increase of 2.5% compared to the executed amount in 2025.

The Ministry of Finance pointed out that in 2026, according to unified rules, a 5% reduction will be made on certain common fiscal authority transfer payments and special transfer payment projects, and all reduced funds will be used to increase financial assistance to localities, which will be evenly returned to the provinces from which the funds were reduced, maintaining overall financial stability.

In general transfer payments, the budgeted amount for balanced transfer payments in 2026 is 28,340 billion yuan, an increase of 3.7% compared to the executed amount in 2025, mainly due to a significant increase in balanced transfer payments to enhance local fiscal capacity; the budgeted amount for the county-level basic financial guarantee mechanism incentive funds is expected to grow by 2.1% compared to the executed amount in 2025, mainly to incentivize and guide localities to ensure basic livelihood, wages, and operations at the grassroots level.

Starting from the autumn semester of 2025, our country will implement a policy to exempt preschool education fees for the year before schooling, leading to corresponding increases in expenditures throughout 2026. Therefore, the budgeted funds for supporting preschool education development in 2026 are expected to grow by 37.8% compared to the executed amount in 2025.

Based on the estimated number of applicants for childcare subsidies, the budgeted amount for childcare subsidy funds in 2026 is expected to grow by 10.6% compared to the executed amount in 2025.

In addition, as the subsidy funds for new energy vehicles will no longer be arranged after settlement, the budgeted amount for energy-saving and emission-reduction subsidy funds in 2026 is expected to decrease by 63.8% compared to the executed amount in 2025.

Proofread by: Su Huanwen