ABSTRACT
The correct handling of the relations among the state, the collective, and the individual with respect to distribution and the correct distribution of the social product and national income play an important role in the smooth conduct of socialist reproduction. The redistribution of the national income is carried on mainly through the socialist state budget, but activities of service industries can also bring about a redistribution of the national income. In socialist society, the distribution and redistribution of national income is carried on mainly through finance. Socialist finance centralizes the national income which is created in the production sphere in the hands of the state. Since socialist finance is a relationship of distribution and redistribution of national income centered on the state, it is thus closely related to the development of the national economy. A fairly large part of the national income, especially a major part of socialist accumulation, is effected through state budget allocations.
