Speech at the Fourth Meeting of the Central People’s Government Committee (December 2, 1949) Chairman Mao then took the floor. He pointed out that the state budget is a major issue, reflecting the entire nation’s policies, because it defines the scope and direction of government activities. Citing the draft budget’s provision for supporting all personnel of the former army and civil service, Chairman Mao remarked: “This is a question of policy. The People’s Government should adopt a responsible attitude on this matter; only in this way can we truly act in the people’s best interests.”  Chairman Mao earnestly advised everyone: “To sum up our situation, we face difficulties, yet we also have solutions and grounds for hope. Our fiscal position is challenging, and we must make these difficulties clear to the people—there is no need to conceal them. At the same time, we must assure the people that we do indeed have the means to overcome these challenges. Since we can surmount our difficulties, our cause is full of promise, and our future is bright. Our circumstances will improve year by year; we anticipate that next year will be better than this one. Within three to five years, our economy can be fully restored; within eight to ten years, it will experience substantial growth.”  Printed from the news report published in the December 4, 1949 issue of the People’s Daily.