The state budget is a major issue, as it reflects the policies of the entire nation, for it defines the scope and direction of government activities.
For example, the question in the draft budget estimates regarding the provision for all former army personnel and former public servants is a matter of policy.
The People’s Government should adopt a responsible attitude on this issue, for only in this way can it be beneficial to the people.
To sum up our situation, we can say: there are difficulties, but there are solutions, and there is hope.
Our financial situation is beset with difficulties, and we must explain these difficulties to the people without concealing them.
At the same time, however, we must also make it clear to the people that we do have ways to overcome these difficulties.
Since we have ways to overcome them, our cause is hopeful, and our future is bright.
Our situation will improve year by year, and it is estimated that next year will be better than this one.
Within three to five years, our economic undertakings can be fully restored; within eight to ten years, our economy can achieve tremendous development.
Printed based on the *Renmin Ribao* (People’s Daily) edition of December 4, 1949.
Note 〔1〕 This is the gist of Mao Zedong’s speech at the fourth meeting of the Central People’s Government Council.