Self-financing is the general term for enterprises to raise capital construction funds and working capital. It is one of the important sources to form and increase the working capital of enterprises. The main sources of self-raised capital construction funds are special funds and special loans. Fixed assets purchased, built and transferred with compensation will increase both fixed assets and fixed funds. Self-raised liquidity mainly refers to supplementing its own liquidity with enterprise development funds. Joint ventures accept investment from other units, and collective enterprises absorb shares, which also belong to the scope of self-financing

Capital refers to the capital for the operation of industry and commerce, and also refers to the materials or currency used by the state to develop the national economy. Capital is expressed as currency, which is used for turnover and meets the needs of creating social material wealth. It embodies the socialist relations of production based on public ownership of information. Capital is the media value used to create new value and increase the value of social surplus products in the process of social reproduction. It also refers to capital management, which means that only a small part of capital is at risk in any transaction.

Extended data:

Self-financing mainly includes the following categories:

1, raised by local finance.

Self-raised funds of local finance include extra-budgetary funds, fiscal balance of the previous year, fiscal reserve funds and other financial resources of local institutions.

2, the competent department of self financing

The self-raised funds of the competent authorities are mainly extra-budgetary funds, which is the most sophisticated and complicated part of extra-budgetary funds. 193 the state adjusted the statistical caliber of extra-budgetary funds, 13 the inclusion of important extra-budgetary funds, 196 budget management. The proportion of extra-budgetary funds in budgetary revenue has obviously decreased, but it has rebounded sharply in recent years. According to statistics, in 2002, the extra-budgetary funds amounted to 382.643 billion yuan, accounting for 20.2% of the budgeted income. This part of the funds has become an important channel for state-owned assets investment, especially fixed assets investment.

3, enterprises and institutions self financing

The self-raised funds of enterprises include the existing surplus of enterprises and the capital injection by shareholders. The former includes surplus reserve fund after enterprise income tax and undistributed profit. Of course, self-financing of enterprises in a broad sense should also include lending to banks, issuing corporate bonds and borrowing foreign debts. The narrow concept is mainly adopted here. Self-raised funds of institutions include various fees, labor income, asset disposal income, etc. Among them, the budgetary funds such as institutional fees charged according to the provisions of the national financial system are the most important source of self-raised funds for state-owned assets investment.

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