Centralised Net Income of the State, a part of the net income of society, formed as a result of its distribution, and concentrated in the hands of the state to be used for the requirements of the population. In the Soviet Union, centralised net income is received from turnover tax, deductions from the profits received by state enterprises, as well as income taxes from collective farms and other cooperative organisations. The need to centralise much of society’s net income in the hands of the state is determined by the ownership of the means of production by the people as a whole, by the economic role of the socialist state, and by the necessity of satisfying the most important state needs. When society’s net income is being distributed, one part of it is isolated and included in the state budget as a turnover tax. The existing mechanism of taxation from turnover ensures the regularity, stability and rapidity of the collection of part of the net income that will go into the state budget to satisfy the people’s requirements. As the system of economic management and cost accounting are improved and socialist enterprises become more efficient, the share of the turnover tax in the centralised net income of the state declines, although the overall sum of the net income grows and the share of payments from profits increases. The mechanism of deducting profits from enterprises that will go into the state budget has changed considerably. Before 1965, state enterprises made only one kind of payment—- deductions from profits; today deductions according to the existing system for forming the centralised net income of the state go into the budget as payment for production assets, fixed (rent) payments and the free remainder of the profit. The new mechanism helps to combine national, collective and personal interests more fully, to make more effective use of economic levers in the work of the production collectives (see Collective, Work, Production), and to enhance economic incentives. Both forms of the centralised net income of the state, although differing in their mechanism of formation, and in their functions and role, have one and the same socio-economic nature. In developed socialist society, the state uses the centralised net income to implement major socio-economic measures, make progressive structural shifts in the economy and help improve the socialist way of life.