The soviets levy taxes only for the local needs. The state needs are covered by the funds of the state treasury. No expenditures out of the state treasury not set forth in the budget of income and expense shall be made without a special order of the central power. The local soviets shall receive credits from the proper People's Commissars out of the state treasury, for the purpose of making expenditures for general state needs. All credits allotted to the soviets from the state treasury, and also credits approved for local needs, must be expended according to the estimates, and cannot be used for any other purposes without a special order of the All-Russian Central Executive Committee and the Soviet of People's Commissars.
Local soviets draw up semi-annual and annual estimates of income and expenditure for local needs.
The soviets may ask for additional credits from the respective People's Commissariats for expenditures not set forth in the estimate, or where the allotted sum is insufficient.