Chapter   Six Subordinate Unit Budget

Article 85
The Enterprise Fund budget in the subordinate unit budget shall be compiled according to the following rules:
1. Each and every competent agency of state-owned enterprises shall, in accordance with the administrative policies and the Executive Yuan-approved general principles for business plan and budget compilation directions, prepare the business plan for the enterprises under its jurisdiction and instruct its subordinate enterprises respectively to draw up a business plan and, based on the business plan, compile the budget.
2. The major contents of the Enterprise Fund budget are as follows:
(1) Estimate of revenues and expenditures from business.
(2) Construction, improvement, expansion of fixed assets and source of capital, as well as, cost and efficiency analysis of investment plans.
(3) Raising and repayment of long-term debt.
(4) Estimate of capital reinvestment and its profit and loss.
(5) Estimate of profit distribution and loss replenishment.
3. The rules specified in the preceding Sub-paragraph shall apply mutatis mutandis to the budget for newly established enterprises.
4. For transfer, suspension of operation or cancellation of state-owned enterprises, the budget shall be compiled on the basis of liquidation of assets and liability and related revenues and expenditures.
5. Computation standards for the estimate of business revenues and expenditures shall be set in accordance with the individual business situation. Where cost accounting applies, the cost computation method, unit cost, consumption of labor and quantity of materials, as well as related information, shall be attached by products, and variable costs and fixed costs shall be analyzed.
6. Items for distribution of surplus and replenishment of loss are as follows:
(1) Distribution of surplus:
(i) Replenishment of losses over the years.
(ii) Appropriation of legal reserves.
(iii) Distribution of dividends or bonus, or profits to be paid to the national treasury.
(iv) All matters for distribution in accordance with the law.
(v) Undistributed surplus.
(2) Replenishment of loss:
(i) Appropriation of undistributed surplus.
(ii) Appropriation of legal reserves.
(iii) Decrease of capital.
(iv) Increase of capital to make up for the loss.
7. With respect to investment, which requires over a year to complete, the contents of the plan, total amount of investment, period of implementation, and annual distribution quota for each year shall be described clearly. The respective annual budget shall be compiled in accordance with the annual distribution quota for each year.
Transfer, suspension of operation of state-owned enterprises shall be conducted in accordance with the budgetary procedure.

Article 86
The amount of profits to be paid to the national treasury, losses to be made up by the treasury and the increase or withdrawal of government investment of the Enterprise Fund of subordinate unit budgets shall be compiled into the general budget; for other categories of the Special Fund, losses to be made up by the treasury and the amount to be paid to the treasury shall be compiled into the general budget.
When each and every agency of a subordinate unit budget processes capital increase by legal reserve of the previous fiscal year appropriated in accordance with the statutory procedure, the Legislative Yuan-approved amount in the subordinate unit budget for the current year shall govern, without being required to compile the amount into the general budget as set forth in the preceding Paragraph.

Article 87
Each and every agency that compiles the Enterprise Fund budget shall, according to its business condition and Article 76 hereof, draw up the phase-in implementation plan and table of estimate for revenues and expenditures; the revenues and expenditures required to be adjusted in conjunction with the fluctuation of the business shall be handled in the final accounting of the budget.
The execution of the phase-in implementation plan and table of estimates for revenues and expenditures as referred to in the preceding Paragraph shall be first approved by the competent agency; the approval shall also be forwarded to the central budget accounting and statistics agency, auditing agency and competent central finance agency for their files and reference.

Article 88
Implementation of the subordinate unit budget, if there are major changes in the management environment or for normal operation needs, may, with approval by the Executive Yuan, proceed in advance without being restricted by Articles 25 to 27 hereof. However, when it involves construction, improvement, expansion of fixed assets, capital reinvestment, sale of assets, raising of long-term debt and debt repayment, supplementary budget procedure shall be required. When a transaction from the Enterprise Fund is in excess of NT$300 million and NT$100 million for other Funds, the case shall be forwarded to the Legislative Yuan for their files and reference; provided, however, Funds processed according to Article 54 hereof or for emergency disbursement for calamities shall be exempted.
The preceding Paragraph shall apply to the implementation of the budget for official agencies that have enterprise or business behavior attached to its operations.
The normal operation of the subordinate unit budget in Paragraph One shall refer to the current scope of operations of the subordinate unit.

Article 89
In the subordinate unit budget, the losses to be made up by the treasury and the amount to be paid to the national treasury of the Special Fund budget, rather than the Enterprise Fund, shall be compiled into the general budget; provided, however, the surplus of operations or Funds appropriated from legal reserves are not included. For the compilation, review and implementation of the profit-loss and cost accounting of the budget, the provisions related to the Enterprise Fund shall apply mutatis mutandis; provided, however, that the Trust Fund shall be governed according to its given terms and conditions.

Article 90
For any matters related to compilation, review and implementation of subordinate unit budgets not provided for in this Chapter, the provisions of other Chapters of this Act shall apply mutatis mutandis.