ORGANIZATION OF THE MINISTRY OF FINANCE USSR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700030262-6
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 8
• Document Creation Date: December 22, 2016
• Document Release Date: October 14, 2011
• Sequence Number: 262
• Publication Date: December 1, 1951
• Content Type: REPORT

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COUNTRY
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DATE
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CLASSIFICATION , ~~~ I f. ? ' .:.. ; ". ' 'I 50X1-HUM
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COP
CENTRAL INTE NCE REPOR1
INFORMATION FROM
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Books
Moscow
1939 - 1950
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PAGES 8
T NO.
i HIS IS UNEVALUATED INFORMATION
ORGANIZATION OF THE MINISTRY OF FINANCE USSR
umbers in parentheses refer to appended sources-7
Historical Background
The People's Commissariat of Finance was established in October 1917.
According to the 1936 Stalin Constitution it is a union-republic commissariat.
Its function is to carry out government financial policy and to direct finan-
cial activities of the economy
In 1934, the Peoples C=missariat of ?inance was reorganized on a
"branch-production" principle; each branch of the economy is represented in
the ministry by a department (1)
Organization and Functions of the Ministry of Finance USSR
The following chart shoving the structure of the Ministry of Finance
was published in a textbook by Rovinskiy in 1944. Since the book's main
interest is in the budget, the breakdown of the ministry does not necessar-
ily include all departments and organizations subordinated to it. A later
revised edition of this book omits the structural breakdown, but she organ-
ization apparentl_ has not changed materially since 1944, as is indicated by
the substantially sim:1er textual description of the various administrations
of the ministry in the 1950 edition.
life
CLASSIFICATION - PRSmRi23~
STATE NAVY NSRB
ARM lx
Y FBI
LI
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DATE OF
INFORMATION 1917 - 1950
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Structure of the Ministry of Finance (2)
Ministry of Finance
of Union Republics
2.
Control and Auditing
Administration
2.
Administration of
State Revenues
3?
4.
Administration or
Taxes and Levies
4.
5.
Staff Administration
5?
6-17.
Departments for branch
financing
(a) Defense industry
(b) Fuel industry and
electric power
stations
6.
(c) Metallurgy and
chemical industry
(d) Machine-building
(e) Textile and light
industry
7.
/ffice or Admnis-
tration7 of Chief
Ministry of Finance of
Autonomous Republics
Kray and Oblast Financial
Divisions
Rayon and City (those not
subordinated to any rayon)
Financial Organs
1.
Budget Department
1.
Budget inspection and
accounting of bidget
fulfillments
2
Senior =ontroller
and auditor
Controller and Auditor
Administration of
3
Department of State 3?
State Revenues
Revenues
Administration of
4.
Department of Taxes 4-
Taxes and Levies
and Levies
Staff Administration
Department for financ-
ing industry, trade,
and coopf-_atives
Department for finan-
cing housing and com-
munal economy, automo-
bile transport, and
communications
LAdJoins page 3 here?
Inspectors and bookkeep-
ers,of state revenues
Inspectors and bookkeep-
ers for taxes and le~"ies,
tax agents
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(f) Timber and con-
struction industry
Lpd.Joine page 2 here?
6. Department for 6. Inspectors for financing
financing the na- the national economy
tional economy
(g) Food industry
(h) Local ?ndustry and
industrial coop-
eratives
(1) Agriculture
(J) Transport and
communications
(1) Housing and com- 8. Department for financ-
munal economy ing agriculture, eater
and motor trans- economy, forestry
port
(m) Trade and pro-
curement
18. Department for fi- 9. Department for fi-
nancing cultural nancing cultural activ-
activities ities and health
19. Department for fi-
nancing public health
20.
Administration of :e-
fense financing
21.
Main Administration of
10.
Administration of
7.
Administration of 7.
State Insurance
State Insurance
State Insurance
22.
Main Administration
11.
Administration of
3.
Administration of 8.
of State Labor Sav-
State Labor Savings
State Labor Savings
ings Banks and
State Credits
Banks and Sta:;e Credits
Banks and State Credits
Inspectors of Main Ad-
ministration of State
Insurance USSR
Rayon state labor
savings banks
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LAdJcins page 3 he e7
State Bank (3)
LThe organizational
structure of Gosbank
is not discussed in
this report.?
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Available information on the functions of various administrations of the
Ministry of Finance USSR is given in the following reactions.
Budget Administration
The duties of the Budget Administration, departments and inspectors are
as follows:
1. Composition of union, republic, and local budget drafts.
2. Examination of subordinated budget drafts.
3. Composition of quarterly plans for +inion, republic, and local budgets.
4. Examination of approved subordinate budgets and quarterly breakdown.
5. Control over the execution of subordinate budgets.
6. Report on execution of union, republic, and local budgets.
7. Compilation of reports on the execution of union, republic, and local
budgets, as well as on the USSR state budget, the budgets of union a l autono-
mous republics, and local Oblast, okrug, and rayon or citj budgets.
8. Examination of annual and quarterly reports on executio- of subordi-
nate budgets.
9. Compilation and analysis of statistical material of union, republic,
and local budgets.
10. Supervising the budgetary work of financial organs handling subordi-
nate budgets.
11. Working out drafts for decrees and directives of the ministry.
The Budget Administration is divided into the following subdivisions for
purposes of carrying out the above functions:
Combined planning departcent
Department of republic and local budgets
Department of execution of budget
Central accounting office
The budget departments of local financial organs are similarly divided
but have an additional division for financing social and cultural activities.
Control and A.iditing Administration
This administration is the most important organ of financial control in
the USSR. Its functions are as follows:
1. Checking on the observance of budgetary rights of union and autono-
mous republics and soviets of workers' deputies by republic and local organs
as well as by ministries and establishments of the USSR.
nlM1~ .. ~ In~-
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DO NTIAL
2. Control over execution of union, republic, and local budgets; control
over the correct and economical use of budget funds and observance of estab-
lished wage rates and wage fund.
3. Control over timely execution of budgetary obligations by state and
coope^ative organizations.
4. Examination of the work of financial organs of state insurance and
state savings banks.
5 Verification by organizations of the State Bank of correct usage of
fiscal rules regarding budget execution.
6. Examination of interdepartmental organization of financial control
in ministries, departments, and organizations-
7. Checking on the fulfillment of d,.ties by senior accountants and
bookkeepers.
In addition, the Control and Auditing Administration and its organs
verify the proper use of budget funds allotted to economic and cultural organ-
izations (and in some cases the use of their own funds). Banks of long-term
credit fall also under the control of the administration.
The control and auditing system of the Ministry of Finance USSR is
tightly cen'ralized. Administration of the control and auditing work of
union republics is carried cut by a chief controller and auditor who is ap-
pointed by the Minister of Finance USSR and is directly responsible to the
chief of the Control and Auditing Administration of the Ministry of Finance
USSR. In autonomous, republics, krays, oblasts, and the cities of Moscow
and Leningrad, the management cf control and auditing work is the responsi-
bility of the chief controller and auditor, who is appointed by the Minister
Finance USSR and is directly subordinate to the chief controller and audi-
tor of the union republic. In union republic capitals, as well as in cities
which have rayons divisions, and in uyezds and okrugs, control and auditing
work is supervised by a senior controller and auditor, who is appointed by
the chief of the Control and Auditing Administration of the Ministry of Fi-
nance USSR and is directly responsible to the chief controllers and auditors
of the sutoncmous republics, kray and cblast.
In other c_cces (vhich do not have rayon divisions) and in individual
rayons, control and auditing work is carried out sy controllers and auditors
who are appointed and dismisses by the chief controllers and auditors of
oblasts and are responsible tc the latter.
Tho following division cf responsibilities has been established for the
different levels of control and auditing apparatus:
Audit of union ministries
Audit of central institutions of the USSR
Audit of republic and local budgets of union republics
Controller:. and = ite:s of union republics
Auditing of republic ministries
Auditing of central institutions of union republics
Auditing of budgets of autonomous republics, krays and oblasts.
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"MENINAM
COME EN1IAL
Controllers and auditors of autonomous republics, oblasts, krays
Auditing of institutions of local subordination
Auditing of rayon end city budgets with Oblast subordination.
Controllers and auditors of rayon and city organs
Auditing of rayon institutions
Auditing of rural budgets (4)
The Administration of State Revenues of the Ministry of Finance USSR,
Administration of Taxes and Levies, Main Administration of State Labor Sav-
ings Banks and State Credit, Main Administration of State Insurance, and
the analogous subdivisions of republic and local financial organs draw up
the annual and quarterly plans for the specific state revenues and levies
to be entered into the budget and organize the collection of all obligatory
payments, as well as of private aeposits that can be mobilized.
The departments and inspectors in charge of financing the different
branche of the economy examine the annual and quarterly incomes and ex-
penditures of industrial organizations, determine the amount of profits tax
and the size and direction of budgetary financing. They also conduct fi-
nancial and economic analysis of the'annual and quarterly accounting balance
sheets and accounting reports of industrial organizations (the state of
working capital, fulfillment of production plans, cost of producticn, capital
accumulations, profitability, etc.) and pass judgment on the planning of
subordinate budgets in respect to all compulsory payments into the budget
and the amount of funds required by the particular branches of the economy.(2)
Departments for Financing Cultural Activities and Health
In oblasts the work of financing cultural activities and health is
carried out by the financial organs of oblasts, while in rayons it is
managed by the rayon financial departments and budget inspectors. The
departments for financing cultural activities and health examine the
estimates of expenditures f?:. the scc:al and cultural activities of peo-
ple's commissariats and executive committees, and finance these activi-
ties within the limits establ:shed by the budget. They?alao examine the
estimates of special assets of the social and cultural establishments, con-
duct financial and economic analysis of bookkeepers' accounts, and exercise
control over the activities of social and cultural establishnents.(2)
Staff Administration, Departments, and Inspectors
These organ examine the estimates of the administrative expenditures
of people's commissariats and executive committee departments and finance
these expenditures in accordance w th the established budget figures. They
also examine the annual and periodic accounts of administrative expenditures
and see that all establishments, enterprises, and organizations observe the
established wage rates (2)
Officials of the Ministry of Finance USSR
The following officials of the ministry were mentioned iz?US State De-
partment Biographic Information Report No 138.1 of 28 February 1951:
-7-
"Mmunoft
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CONFIDENTIAL
on - 50X1-HUM
Minister: Zverev, Araeni Grigoriyevich
Deputy Minister for general affairs: Buzin, D. S. (identified Jul 1949)
Deputy Ministers: Popov, V. F.
Uryupin, F. A.
Yanbukhtin, K. Kh.
Boldyrev, A. S.
Baranov, I. E.
Zlobin, I. D.
Gruzhkov, I. V.
Plotnikov, K. N.
(identified Feb 1949)
( Jul 1946)
( May 1948)
( ^ ^ ^ )
( " ^ )
( ^ 11 " )
Members of the Collegium in additions to the above:
Safronov, A. M. (identified Sep 1946)
Gusev, S. I. ( " Mar 1949)
Chairman of the Administration of State Banks: Popov, V. F. (identified
Jan 1949)
SOURCES
1. Bol'shaya Sovetskaya Enteiklopediya, Vol 41, 1939, pp 222-223
2. N. N. Rovinekiy, Gosudaretvennyy Byudzhet SSSR (State Budget of the
USSR), Moscow, 19 , pp 3-353
3. Ya. Greben' and A. Proselkov, OOperativnaya Tekhnika i Uchet v Gosbanke
SSSR (operating Technique and Accounting in the State Bank USSR , Moscow,
I}71Ti, p 11.
4. N. N. Rovinekiy, Goeuderetve dzhet SSSR (State Budget of the USSR),
Vol II, Moscow, 19 0, pp 2 9 Yf} alsu N. N. Rovinekiy, Fiw neo Kontrol'
v SSSR (Financial Control in the USSR), Moscow, 1947, pp k
GONFIDEL' TIAL
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