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Document Number (FOIA) /ESDN (CREST): 
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Document Creation Date: 
December 15, 2016
Document Release Date: 
January 15, 2004
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Publication Date: 
April 29, 1953
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PDF icon CIA-RDP80-00809A000500030191-4.pdf67.61 KB
Approved For Release 2004/02/11 : CIA-RDP80-00809A000500030191-4. 25X1 25X1 CENTRAL INTELLIGENCE AGENCY SUBJECT China's Budget/Economic Trend 25X1 25X1 DATE DISTR. AApr 53 25X1 this clearly shows that the national soon a life o na : :? :now tc d to beco: = on: : nd the time. For ez mle, in announcing the budget, the Finance Minister PD'I-pa pointed orit that 60%'of receipts are from earnings 25X1 esld taxes from state-oporated industries and ccoperatives., bnd that total expenditures in "reconstruction" investments are elso 60%. INFORMATION REPORT r..s ooc -T co.r u?s ieroe.?-rios I. TIE ..TI L oarcesf o? rat uNirr. 5-11. ar...., +.t ..t?+..c or .. nt a atcno.f T AND TH.O1 THE U.S. coot. .f *??.W~f. i G. o ...P 1.T101 Of ITS co.TtTr T. 4? .[C[1.T .? .? ub.YT.G?IZCO ?[5100 If THIS Is UNEVALUATED INFORMATION NO. OF PAGES 1 NO. OF ENCLS. SUPP. TO 25X1 REPORT NO. 1. Red Chines budget for 195 was announced on l2 February 1953? The total v" act at Y 233,499,100,000,000 (J)? This amount is oQuival.ent to U09,Q66,000,000 at the official rate. For the salve of convenience,, it is generally put down as UOW10 bi111oIa, an increase of US$2 billion over the previous budget. 2. By US standards, it is really not too large a budget. However, from the Chinese stand- point, it is indeed tremendous, especially when the national income on the mainland _ 25X1 has been estimated at no more than US$15 billion. This means that the 1453 budget eon- 25X1 3? the ownership of property in Red China has undergone a fu d.a.- that is, the state economy is expanding without any limit while private mental change , industry is steaTily, disappearing. In the past three years, the state-owned industries have increased from about 30% to over 60%, whereas private industries have dropped from 70% to less than 30%. Ting predicts, therefore, that at the conclusion of 'the first "Five-Year Plan", which was inaugurated this year, prix!:. aatWrpil.Oas will have vanished completely. 4. The Reds have designated 22% of the budget for military expenditures and about 60% for "national economic reconstruction and social, cultural and educational reconstruction". The administration takes about 20% of the total expendi ores. However, in "economic reconstruction" what they aim to do is to build up defense and heavy industries. There- fore, 60% of the budget in military in nature, making it 25X1 primari1Y a war et. 5. In the light of the present "peace" offensive, it is quite probable that Red China wants a breathing spell in order to inaugurate its industrial plan for another adventure in the future. ?.? cad - 25X 25X1 CONFIDENTIAL pISTRIeUT1oN s ARMY NAVY AIR I This reporLrie for the nee within the USA of the; Intelllgenca components of to or Agencies indicated above. It is not to be transmitted overseas without the the originating office through the Assistant Director of the Office of Collection and Dissemination, CIA. Approved For Release 2004/02/11 : CIA-RPP80-00809A000500030191-4 25X1