2014 - Our Financial Policy

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I. Policy

The collection and allocation of funds is one of the important factors for the implementation of the general political and military line of the party. The Central Committee has to formulate a financial policy. It has to thereby ensure proper collection and allotment of the funds to not only the party and the army but also to the united front.

The Communist party should have a clear cut proletarian outlook both in the collection of funds and in their expenditure. Funds should be allocated keeping always in mind the needs of the war, political propaganda and the people. There is always an ample scope for the entry of non-proletarian trends due to the influence of the feudal and imperialist culture. This results in economic wastage and corruption, etc.

The conscientious party members must always have to struggle against these wrong trends. All the party members should live very simple lives and should always keep in mind that every coin expended by them is the product of sweat and blood of the toiling masses and that it should therefore be not wasted.

1. There are three resources in the main for fulfilling our economic needs. One is the party membership fee, levy and the contributions of the people and the second one is by confiscating the wealth and the income sources of the enemy and the third is the taxes we collect in the guerilla zones and base areas by following progressive tax system. At present income through independent production is not an important source of income for us. This is possible only after the establishment of the base areas.

Our sources of income are limited but our areas of operation are expanding. The intensity of the war is increasing and area of movement is expanding. So our needs and expenditure are increasing also. It is natural for the incomes of the different regions to be unequal as there is unequal development of the movement. It is also fact that our income is not increasing par with the growing expenditure. Therefore it is quite necessary for us to strive to achieve balance between income and expenditure.

So, to achieve the above said balance, to fulfill ever increasing needs of the war, political propaganda and to uplift the life standards of the people, it is necessary to improve the economic resources and regulate the expenditure. For this a centralized financial policy and planning is quite essential for our party. That means, all the income and expenditure should be planned centrally. This centralized policy and plan should be implemented throughout the party form the higher committee to lower committee according to the committee system.

2. Though we work in the light of the above centralized general policy, it is difficult for the CC to fulfill all the needs of conducting revolutionary war against a big country like India. Moreover even when seen from the angle of protracted people’s war, making the areas self-sufficient is also of prime importance. While implementing the centralized financial policy we have to keep in mind the above said important factor also. Therefore by making our areas of struggle self-sufficient on the one hand and proper implementation of the centralized policy on the other we can fulfill the need of war efficiently. For this the State and regional committees should have to play a crucial role in planning, procurement of funds and regulation of expenditures.

3. According to the plan given by the SCs, the RCs should be the basic units for the collection of funds, expenditure and accounting. The SCs/SACs/SZCs will leave one year reserve funds with them and take the rest. CC also will leave one year reserve funds with the RC and take the rest. This should be implemented except under special circumstances. Self-sufficiency should be achieved at all levels. To fulfill all the needs of central committee to conduct revolutionary war is the responsibility of the RCs and SCs that should be carried out by them.

4. The lower committees will submit their budget and their accounts to the RCs/DVCs/DCs and these committees to look after their needs. ZCs/DVCs/DCs and the SCs/SACs/SZCs will submit their budgets and accounts with their respective higher committees. It is well and good if the expenditures of the committees are met with their own incomes. Otherwise, the higher committees may make necessary allotments for time being and also formulate a time-bound plan to make them self-sufficient and see to it that they are implemented. In this way, it will also be possible for the central committee to make suitable allotments for various regions and departments where it is needed.

5. The Central Committee will formulate guidelines regarding financial matters of our Party; allocate funds according to the budget plan and co-ordinate with states and the departments. It also maintains the central reserves, prepares the financial statements and budget planning yearly and definitely checks up the financial matters of the lower level committees.

The CC looks after the financial matters such as checking the wrong trends arising in the Party in respective of financial matters by identifying them in time, helping in the extension of the movement to new areas and rendering financial assistance to the Party units where the movement is weak. For this, audit bureaus should be formed at the state and central levels. The funds collected by states and other wings of the Party shall be considered as the central reserves of the Party. It submits the final financial report for the period between two Congresses for the approval of the Congress.

6. SAC/SZC/SCs will allocate funds according to the budget plan and co-ordinate with various Regions and Zones and departments. It also maintains the state reserves, prepares the financial statements and budget planning and accounts yearly and submits them to the CC and checks up the financial matters of the lower level committees.

The SCs looks after the financial matters such as checking the wrong trends arising in the Party in financial matters by identifying them in time, helping in the extension of the movement to new areas and rendering financial assistance to the Party units where the movement is weak. It submits the final financial report for the period between two state Conferences for the approval of the Conference.

7. The ZCs will allocate funds according to the budget plan and co-ordinate with various lower level committees up to AC and the departments. It also maintains the Zonal reserves, prepares the financial statements and budget planning and accounts yearly and submits them to the SCs. It will check up the financial matters of the lower level committees. The ZC looks after the financial matters such as checking the wrong trends arising in the Zone in financial matters by identifying them in time, helping in the extension of the movement to new areas and rendering financial assistance to the Party units where the movement is weak. It submits the final financial report for the period between two Zonal Conferences for the approval of the Conference.

8. All the party members should submit their accounts in every meeting of their respective committees and all the committees should finalize their accounts in their every meeting.

9. Our centralized financial policy comes into effect through the implementation of the decisions taken by CC on financial matters, and their direct guiding of regional and zonal committees in accordance with the central financial policy. ZCs and the RCs must obtain the approval of the SCs for their plans for the collection and allocation of funds.

10. The SCs examines and ratifies the annual budgets of the lower level committees ranging from the Area Committee to the regional committee. The State Committee guides the lower committees so that they prepare guidelines about funds needed and to draw up and implement budget plan. When new annual budget allocations have not been approved in time, the RCs and ZCs can add additional allocation of 20% over their last budget.

The whole new budget may be allocated as expenditure from the reserves with them, and subsequently the approval of the higher committee must be obtained. If new additional expenses come to the fore after the allocation of the new budget, the respective committees by themselves can allocate additional allocations up to 10% out of their annual budget. If additional expenses are needed over this, they should not be made with out the approval of the State Committee.

Similarly the State Committees can spend up to 10% over their budget, and if any thing more is needed, they must obtain permission from the CC. When the holding of CC, SC meetings gets delayed or when new problem arises due to repression, the Central Committee members can allocate budget amounts for their own needs and for the needs of the departments they are leading, equivalent to their last annual expenditure.

11. The budget year for our Party will be from January to December. All committees and departments under the Regional committees should annually prepare and send their budget proposals for the forthcoming year once in a year to concerned higher committees for its approval.

12. Necessary funds should be allocated for the RPCs of various layers that are coming into existence in the guerilla zones marching towards the liberated areas, so that production can be enhanced and various welfare measures implemented. But from the beginning, they have to strive to become self-sufficient by improving the production, developing co-operatives among the people, bring about changes in land relations and collect taxes.

13. Whenever a part of the movement area in one RC is merged with another movement area in the adjacent area to accord with the needs of the movement – for extension and development of the movement – or where an important struggle area from a single zone is separated and formed into special zone, all the reserves of such regions will temporarily remain with the erstwhile District Committees. However, keeping in mind the financial needs of the new regions and the possibilities for fund collection open to them, the allocation of reserves should be decided by the CC.

II. Collection and Allocation of Funds

1. Collection of Funds:

(a) From Party Members: Membership fee should be collected regularly from Part-time Party Members without fail. Levy should be collected compulsorily from them taking into account their incomes. Professional Revolutionaries should accept the money and other goods sent by their friends and relatives. However the consciousness among them should be raised that this is the party’s property.

(b) From the People: It will be our bounden duty to foster among the people the political consciousness that “we (people) must meet the financial needs of the Party”. We should collect contributions from people of all walks of life except from counter revolutionaries. This can be in the form of cash or grain or in other kinds. We should collect grain extensively during harvesting season in the rural areas. On the occasions of mass meetings contributions from the people should be collected by all possible means, by visiting each household in villages and towns. These funds constitute the lifeblood of our movement.

(c) Through the confiscation of properties of people’s enemies: As a part of the class struggle raids should be conducted on the properties of big landlords and notorious money lenders both in rural and urban areas either enmass with the cooperation of the people or by the NPA units itself, and all kinds of valuable properties should be confiscated and handed over as party funds. On occasions when raids are conducted solely for meeting the needs of the people as per Party directive, all that is confiscated should go to the people. When the Party feels it is necessary, it can take some part of the money obtained through such raids with the permission of the people.

(d) Through Taxes: Various contract jobs, businesses, and collection of raw materials is going on in the movement areas. Even while waging struggle against their exploitation, taxes should be imposed on the total amount of their businesses. As the Petty-businessmen and traders are part in the New Democratic Revolution we shall collect contributions from all of them category-wise according to their capacity. We will collect taxes from them in our guerrilla zones and perspective areas. We shall not collect taxes from the public construction works such as schools, hospitals, and from ration shops and projects, etc., but strive to enhance the people’s control/checking on them.

(e) Confiscations: As the needs of the movement grow, raids should be conducted on public-private banks and cash and gold should be confiscated. The income obtained from these raids will also constitute one of the important resources for the Party.

(f) All the collections should be done only by issuing proper receipts.

2. Allocations:

Party funds have to be allocated mainly for the following heads. Depending on the needs of the movement, the allotments should be done carefully under different heads while preparing the budget itself. The higher committees also should carefully examine the proposals for the budget and make necessary cuts. CC, central audit bureaus and Regional audit bureaus will make necessary cuts even when the funds are scarce.

(a) Maintenance of Committees and tech mechanism

(b) Extension to New Areas

(c) Military needs

(d) Party Magazines and Propaganda

(e) Political Training

(f) Mass organizations

(g) RPCs (h) Medical (i) Other needs

(a) Maintenance of Committees and Tech-mechanism:

The meeting expenses of the committees, traveling expenses of its members, expenses for maintaining tech mechanism and along with these, the expenses for the purchase of necessary equipment and other related expenses, all come under the head – maintenance expenses of committees. Necessary funds should be allocated for them.

(b) Extension to new Areas:

At the time of extending to new areas we cannot immediately depend on the people for all needs. In such times, assistance has to be given until the party committee of that area becomes financially self-sufficient.

(c) Military Needs:

In the main, three types of expenditure come under military needs. One – for the maintenance and management, fatigue needs and the training of the NPA forces; two – purchase of arms, ammunition and explosives; three – various departments like production and R&D of arms, ammunition and explosives, and Communications, Intelligence, Logistics, Supply, Medical and such other important departments.

(d) Maintenance of Professional Revolutionaries:

The Professional Revolutionaries have to depend mainly on the people to meet their needs. Where the needs are not met, respective party committees have to allocate necessary funds.

(e) Political and Ideological Training:

The need for imparting political ideological training to party members, party committees at all levels and in all fronts grows day by day. Classes, workshops, seminars, study camps have to be conducted and libraries have to be set up as a part of this. Hence, funds should be allocated specially for conducting these.

(f) Party Literature and Propaganda:

Several types of journals along with the writings of Marxist teachers will be required in our own languages where Party branches function for the propagation of revolutionary politics and movement and for imparting political education to party members and the for raising the consciousness of the people. The need for other literature, which will be of use in understanding deeply, the experiences and political and ideological debates of various countries, will grow along with the growth of the movement.

Several types of other literature too will be required for countering the enemy propaganda, the feudal-imperialist culture and repression and for direct exposition of Party’s line to the people. Adequate funds should be allocated to this field due to the importance of revolutionary literature and propaganda.

(g) Mass Organizations:

The Party should guide mass organisations at all levels, in a way that they become financially self-sufficient by procuring the amounts they need through membership of the mass organisation and through the collection of contributions directly from the people. During the time when repression goes on intensively and when the mass organisations are functioning secretly and when the need for funds for their programmes arises, those amounts too should be procured from the people.

Cover organisations too should depend on the people alone for the funds required for their programmes. When it becomes absolutely necessary, there should be allotments from the party committees, even while giving them guidance to overcome the situation.

(h) Medical Needs:

The medical needs are growing along with the growth of the party and the movement. The Party committees at various levels should provide funds for meeting the expenses of those wounded in battle; the medical needs of the party committees and guerrilla forces; the medical facilities provided through medical camps, people’s clinics and other facilities provided by the mass organisation to the people and so on. The concerned committees should show the medical expenses separately in their expenditure sheet.

(i) RPCs:

Along with the establishment of the liberated areas and the consolidation of the people’s organs of power, they will have relatively independent financial policy and funds and their allocations. Until then, however, the party committees have to make the necessary allocations, to fulfill their needs. RPCs should allot funds for the militia units.

III. The Financial Policy of the Guerilla Zones and Liberated Areas

All the strategic areas selected by our party for the establishment of liberated areas are backward areas with forests, hills and they basically comprise of tribal people. So it is imperative for us to increase production and productivity along with the transformation of the production relations. We have to take up activities with the aim of establishing new production relations in place of the economic policies that serve the interests of the landlords and imperialists.

For this, land reforms should be implemented, lands of the landlords occupied and distributed among the agricultural labourers and poor peasantry. Indiscriminate felling of the forest should be controlled and fallow lands and un-cultivated forest lands should be extensively brought into cultivation. Modern agricultural methods should be employed using the local resources for improving the agricultural productivity.

We should train up the people to adopt better methods in the growing of vegetables, and rearing pigs, poultry etc. Efforts should be made to develop business, handicrafts and cottage industries like soaps, shoes, oil mills etc. and those industries which depend on the forest products. These should be encouraged both collectively and individually. Constructions like tanks, ponds, watersheds, drainage channels, irrigation canals, bridges, schools, hospitals, veterinary hospitals, that fulfill the collective needs, should be taken up.

Primary Health Centers and schools for primary education should be established and run regularly and effectively. We should rely on the voluntary contribution of free labour by the people for the implementation of the above policies, and the RPCs should collect the additional funds needed through various sources.

i. RPCs will collect taxes and contributions from people, business men, contractors etc. and fines from anti-people elements. This could be in cash or in kind.

ii. They will collect royalties from the big businessmen and contractors.

iii. They will issue bonds, when necessary, to collect capital for the people’s government. When the RPCs are not self-sufficient with the funds collected through the above means, respective party committees should allocate up to 15% of their funds.

IV. Legal Assistance and Assistance To the Families of Victims of Repression

(a) Legal Assistance: There is a need for funds for providing legal assistance to the sympathizers and activists who are facing court cases. Funds are needed for the engagement of lawyers, for offering sureties in court affairs, for court fees, for the controlling of false witnesses etc. Money will also be needed for various needs of the comrades in jails. Funds for this should be collected through various methods and forms – from the families of the jailed, from the people’s enemies who are responsible for the cases, from the common funds of the villages and through donation campaigns etc. When sufficient funds are not raised through these methods, party committees should allocate necessary funds. However, we should not let the attitude of depending entirely on the party prevail.

(b) For the Families and Villages of Victims of Repression: For those who become having lost properties, harvests, production implements due to repression, help should be extended by mobilising people. Financial support is needed apart from moral support. We should also try to see that help is extended to the utterly poverty stricken families of martyr comrades. Contributions collection campaign should be taken up for this. Efforts should be made to see that the collection and distribution of these funds takes place under the supervision of special committees. The distribution of funds should be allotted to fulfill the needs. When enough funds can not be collected by RPCs through these methods, minimum party funds should be allotted.

(c) Assistance for Families of Party Members and NPA Members: Generally, we are not giving assistance for the needs of families of party and forces. We have been educating our comrades and their families that it is not possible for us to extend financial assistance to them and they should solve their financial problems on their own and that one should be prepared even if one’s family undergoes suffering to some extent and that sacrifice is the only solution to this problem. However, where these families absolutely have no other alternative, the concerned committees should draw up plans to extend assistance through the following methods:

(i) Assistance through village mass organisations

(ii) Assistance through friends and relatives arranged through our encouragement

(iii) Direct assistance from the Party One should have the understanding that even through all this assistance we will be still able to raise funds and distribute only small amounts. Funds should be raised through these three methods to the extent possible and allotted to the families. Along with this, political consciousness too should be instilled. Necessary funds should be allotted for the direct assistance that party provides. To rectify defects comrades should be made to realize their shortcomings through discussions and concrete methods and suggestions should be indicated. And limits should be imposed.

c) Money dumps of huge amounts should not be kept with comrades in whom political and organisational vacillation has began irrespective of the level they may belong, nor should the dumps be kept even under their supervision. While setting up dumps in struggle areas large amount should not be kept at one place. In plains and urban areas party funds should not be kept with those who are exposed to the enemy; with those who do not have sufficient revolutionary political consciousness and with those who are addicted to vices. Any one should not take and utilize the un-allotted funds from the dumps.

d) In-spite of collecting funds properly by the committees and members even when there are such opportunities, depending on the higher committees. Not implementing collective decisions during collection and taking individual and liberal decisions and not giving proper accounts.

e) The wrong trend of not depending on the people and lack of thriftiness. We should enhance the political consciousness among comrades at all levels and strict discipline should be observed. Comrades, Today our party is leading a merciless class war. In this situation, systematizing our economic activities and our economic condition is the immediate need of the hour.

Keeping this in view we have to implement this financial policy in such a way that a very disciplined and efficient economy can be brought about from top to bottom in the party, NPA, mass organizations, UF organizations and all the departments; proper balance can be achieved between the income and expenditure of the party and our needs and resources so that the revolutionary war can be advanced; every coin is saved to fulfill the increasing war needs; no work shall stop owing to the paucity of funds and not even a single coin be expended anywhere unnecessarily. In this way, we have to strive hard to systematize the economic life of our party like the disciplined life of the proletariat.

All the leaders and cadres of our party, army and mass organizations at all levels should adopt the simple life style and hard work of the proletariat. We must get rid off the petti-bourgeoisie values, standards and habits and adopt the proletariat values, standards and habits. Comrades, we have to lay the foundation of new democratic economy. So we have to nourish and develop the new democratic aspects in the economy of our party. We know that the very meaning of Socialism is well disciplined, well systematized and well planned system. Come, let us implement this centralized financial policy with resolve and on priority basis to build the whole economy of the party on this foundation.

30th May 2014 With Revolutionary Greetings, Central Committee, Maoist Communist Party Manipur

CC : Central Committee

RC : Regional Committee

SAC : Special Area Committee

SZC : Special Zone Committee

AC : Area Committee

ZC : Zone Committee

UC : Unit Committee

DC : Divisional Committee

CMC : Central Military Commission

RPC : Revolutionary People's Committee