ABSTRACT

The function and work of socialist public finance are an important and integral part of socialist reconstruction. A clear understanding and appreciation of the nature, system, and characteristics of socialist public finance are a matter of importance in the development of the socialist revolution and socialist reconstruction. This chapter attempts to investigate, in a preliminary way, the problems arising from these areas. Under the socialist system, the state's finance is used as an instrument by the proletarian government to carry out its socialist revolution and socialist reconstruction. A socialist economy is a planned economy; a socialist state has an economic function and capability. In a socialist economy it is necessary to absorb a portion of the social production and people's income into the hands of the state, so that the state may effect a distribution. The relation of production to public finance is really the same thing as the relation of production to distribution.