The issue of the production and realization of surplus value, which is the basis of material structure of reproduction of capitalist society, cannot be ignored by the state. For this reason, the state must try to maintain or create the conditions in which profitable capital accumulation is possible. Furthermore, the state also must try to maintain or create the conditions for social harmony and peace. These duties, which change in time depend on the needs of capitalism, determine the size and composition of state expenditures. The role of class structure and class struggle is crucial in this determination process. It seems to be the case that liberal thought that advocates keeping state expenditures at minimum in all cases, in part due to their unproductiveness, does not really comprehend the dynamics of capitalism, and therefore necessary conditions for its survival.
Key words: State Expenditures, Capital Accumulation, Legitimization.
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