Page 18 - SELECTED WORKS OF ZHOU ENLAI Volume II

16 ZHOU ENLAI

considerable time to come. That fact also shows the great contribution
of the Chinese peasantry.
The contribution of the cities takes the form of tax payments. In
the past we depended almost completely on the countryside. Now
that the situation has changed, we can also rely on the cities and let
industry and commerce do their share. But in the initial period we
cannot lay too heavy a burden on the cities; it should be lighter than
that on the countryside. Now 41.4 per cent of the stae’s financial rev-
enue comes from the countryside and 38.9 per cent from the cities.
In actual practice, many taxes such as those on salt, commodities,
slaughtering animals, etc., will still go to the peasants in the end. While
it is wrong to ask too much of the cities at present, government
employees in the cities should persuade industrialists and merchants
to pay taxes.
The income of state enterprises accounts for 17.1 per cent of
financial revenue.
The three sources of revenue I have mentioned are not sufficient
and there will still be deficits. So we shall have to issue government
bonds. Eighty-two per cent of the total budget for 1950 will be drawn
from various sources of income, 7 per cent from the sale of govern-
ment bonds, the rest from the issuance of currency. The funds raised
this way will tide us over the difficulties next year following our
victory. Can we borrow money from foreign countries? We do need
foreign assistance. We welcome aid from friendly countries, for it is
offered with sincere goodwill, but we should rely mainly on ourselves
to build China.
In the state financial plan expenditures have been retrenched.
First, the military takes up 38.8 per cent of the total budget. The
annual expenses of the army add up to only 2,000 kg. of grain per
capita, or 10.5 million tons in all. The expenses for building the navy
and the air force are not included.
Second, administration takes up 21.4 per cent. Our administrative
expenditure is modest. The average annual income in terms of grain
for people under the supply system is from 900 to 1,000 kg. per capita.
For those under the salary system, the amount is 2,100 kg. per capita.
We cannot apply the salary system to all those now under the supply
system, nor can we introduce the supply system among people now
under the salary system. Incomes under the two systems are not
equal. Nevertheless, we have to ask those comrades who are under
the supply system to be more patient. The government is aware of