Page 19 - SELECTED WORKS OF ZHOU ENLAI Volume II

FINANCIAL AND ECONOMIC SITUATION 17

their domestic difficulties and is trying to solve some of their most
pressing problems.
Third, economic development, education and culture take up about
30 per cent of the budget. Funds allocated under these categories
will go for investment in state enterprises, for cultural and educational
facilities and for construction in the localities. Investment in state
enterprises will constitute 23.9 per cent of this total.
Fourth, the general reserve fund takes up about 10 per cent of
the budget and will be used for covering unforeseen expenses, such
as relief to disaster areas.
The breakdown of the budget shows that the major expenditures
are to support the war effort that will liberate the whole of China.
After that come the expenses for construction and the recovery of
production. Total expenditures add up to less than the equivalent
of 30 million tons of grain, a figure that reflects frugaltiy on the part
of the state and a low standard of living. Historically, the Chinese
nation has always been valiant and industrious, and our Party has
the revolutionary tradition of hard work. In the initial stage of
building New China, we hope all our administrative workers will
maintain that tradition and carry it forward.
4. Following policies. We must all implement government
policies and conduct our work according to the general guidelines I
have mentioned, so as to prevent departments from asserting their
“independence”. We should attach special importance to heavy
industry, although other types must not be neglected. Within heavy
industry, the iron and steel industry should be given priority, although
we must not neglect the others either. In agriculture, equal im-
portance should be given to water conservancy and agricultural pro-
duction, with the former supporting the latter. In transport, the most
important thing is to restore railway service. Actually, we have made
rapid progress in that respect. We originally planned to reopen
18,0 kilometres of railway lines this year; now the plan has been
overfulfilled by 2,000 kilometres. It is anticipated that all railway
lines will resume service next year and that some new ones will also
be built. The restoration of road and water transport will come next.
Every unit should keep the overall situation in mind, find its own
position and orientation under the general financial and economic
plans, and restore and expand production, establishing clear priorities
and proceeding in accordance with a plan. In this way it can avoid