ABSTRACT
The Socialist budget performs three basic functions. They are: the control and co-ordination of physical economic processes through financial discipline, the promotion of economic activities through fiscal incentives and disincentives to achieve the targets postulated in the economic plan, and the redistribution of national income in conformity with the 'law of planned proportionate development' of the entire economy. The role of the budget has been increased under the new economic system, where directives have been largely replaced by sophisticated forms of fiscal and financial instruments. The problem of fiscal control is much greater under Socialism than under capitalism. In a Socialist economy, the scope of public finance is much greater. The items of expenditure in a Socialist budget are arranged according to their role in the creation of national income. Financial control implies a system of supervision and the enforcement of financial discipline in the sphere of public finance.
