Great Leap Forward
Rash advance movement and anti-rash advance movement

In the early years of the New China, due to the lack of experience in financial and economic work, it was a common practice to include the fiscal surplus of the previous year in the budget of the current year. Because of the low level of budgeting in the fiscal sector and inaccurate estimates of economic development, revenues and expenditures were underestimated. However, no problems arose because the government usually managed to end the fiscal year with a surplus. In 1953, when China entered the first five-year plan period, the Chinese economy had improved and the Ministry of Finance still decided to include the fiscal surplus of the previous fiscal year as credit funds in the 1953 budget revenue to cover the current year's expenditures. As a result, budget expenditures were expanded and so was the size of the budget. At that time, only the Soviet expert Kutuzov warned the Chinese fiscal authorities not to use the fiscal surplus of the previous year, however, it was not heeded by the Ministry of Finance. In that year, the gross industrial and agricultural output grew by 21.3%, while the capital construction budget increased by 50% compared to the previous year, which led to an imbalance between production and demand. Such was the "small rash advance" (小冒進) at the start of the first five-year plan period. The issue had caused widespread social controversy. The faction of Li Xiannian, Chen Yun and others did not think it was appropriate to continue this practice, but they also had opponents. Li Xiannian finally decided to hold a collective meeting to discuss the issue, and after listening to the views of all parties, he decided to abolish the practice.

Nevertheless, the controversy over the use of the fiscal surplus persisted, which brought another reckless "rash advance" to China's economic development in 1956. At that time, China lacked consideration in three areas: capital construction, employee wages and agricultural loans, making the central treasury tight again. This drew the attention of Zhou Enlai, Li Xiannian and others, and at a state meeting held on June 5, 1956, proposals were made to curb impetuousness and rash advances, revise the 1956 national economic plan, and cut capital construction investment. Such was the anti-"rash advance" movement.

The excess of the first five-year plan gave the nation great confidence, and at the Second Plenary Session of the 8th Central Committee, "go all out, aim high, and build socialism with greater, faster, better, and more economical results" (simplified Chinese: 鼓足干劲、力争上游、多快好省地建设社会主义; traditional Chinese: 鼓足幹勁、力爭上游、多快好省地建設社會主義) was adopted as the "General Line for Socialist Construction" in China. In 1955, Mao had already expressed his belief that socialist construction should achieve "greater, faster, better, and more economical" results. These led to the re-emergence of "rash advances", which further led to the reintroduction of policies and tendencies that had previously been overturned. Those who opposed Mao's policies were accused of not upholding the tenets of the "class struggle" under people's cult of Mao.
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