ABSTRACT
The centralized management of the national economy is an integral feature of the socialist system and stems from the public ownership of the means of production. This chapter emphasizes that the compilation of contracts and the issuance of orders to suppliers must generally precede the ultimate confirmation of current plans with respect to volume and product-mix. Perhaps this cannot be achieved all at once, but such is the line of development of this important branch in our system of management. This chapter proceeds from the desired size (by year) of the net product and of the per capita consumption fund in the net product under given prices to the required resources. After comparing resources against the initial data, it proceeds in the second approximation from the adjusted resources and prices to the necessary rate and volume of increase in net product and consumption fund. Methods of interbranch balances and principles of optimal planning are also employed.
