The Financial and Economic Committee of the Government Administration Council has achieved significant success over the past six months in organizing revenues and expenditures and stabilizing commodity prices.
The committee’s guiding principles are correct.
There are still some shortcomings in the work, which should be noted and corrected.
Our country’s financial situation has begun to improve, which is a very good sign.
However, a fundamental improvement in the overall financial and economic situation requires three conditions: the completion of land reform, the rational adjustment of existing industry and commerce, and substantial reductions in military and administrative expenditures.
These should be pursued step by step and are entirely achievable. Once realized, a fundamental improvement will emerge.
In the coming months, the focus of the government’s financial and economic leading organs should be on adjusting the interrelations between public and private enterprises, as well as among various sectors of public and private enterprises, and on vigorously overcoming anarchy.
The provisions of the "Common Program" regarding the regulation of various socio-economic sectors in terms of business scope, raw material supply, sales markets, labor conditions, technical equipment, fiscal policy, and financial policy—under the leadership of the state-owned economy, with division of labor and cooperation, each finding its proper place—must be fully implemented to benefit the recovery and development of the entire people’s economy.
Certain confused ideas that have already emerged in this regard must be clarified.


Printed based on the April 15, 1950, issue of *People’s Daily*.


Note: See Article 26 of the "Common Program of the Chinese People’s Political Consultative Conference," adopted on September 29, 1949, at the First Plenary Session of the Chinese People’s Political Consultative Conference.
The original text reads: "The state shall regulate the state-owned economy, the cooperative economy, the individual economy of peasants and handicraftsmen, the private capitalist economy, and the state-capitalist economy in terms of business scope, raw material supply, sales markets, labor conditions, technical equipment, fiscal policy, and financial policy, so that all socio-economic sectors, under the leadership of the state-owned economy, may divide their functions and cooperate, each finding its proper place, in order to promote the development of the entire social economy."