Capital budget management is the co

Capital budget management is the core of corporate capital management. Capital budget management plays a role in forecasting and planning for investment and financing activities, capital use planning, corporate capital restructuring, etc., enabling enterprises to allocate funds reasonably. Improve capital use planning and corporate compliance through strategic objectives. However, due to insufficient corporate capital budget management, the company's capital structure lacks rationality, and short-term debts are used for fixed assets and real estate with long returns. It cannot deliver, and in the case of repayment, the debt can be repaid only with operating funds associated with other business. A situation of “breaking down the eastern wall and filling the western wall” may occur, the company's solvency will be greatly reduced, and the risk of the company's capital chain rupture may occur. At the same time, insufficient capital budget management and budgeting problems can lead to low capital utilization, problems with corporate fund turnover, and serious situations that can adversely affect the normal operation of the company.