SUPPORT TO CONGRESSMAN SANTINI ON THE EAST GERMAN BUDGET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000600070021-7
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 4
• Document Creation Date: December 16, 2016
• Document Release Date: December 8, 2004
• Sequence Number: 21
• Publication Date: November 14, 1975
• Content Type: MFR

STAT
Approved For Release 2005/01/10 :CIA-RDP86T00608R000600070021-7
 STAT
Approved For Releas; RQ~1 ."~l:1l@iity608R000600070021-7
14 November 1975
MEMORANDUM FOR THE RECORD
SUBJECT: Support to Congressman Santini
on the East German Budget
The attached was prepared for
Support Office, per his request of 13 November.
responding to a request from Representative Santini (Democrat-
Nevada). The attachment describes the East German budget and
revenues and expenditures for 1972-1975.
STAT
Eastern Europe Branch
Attachment:
as stated.
Distribution: (S-09161)
1 -DOER, DD/OER, SA/ER
1 - D/U
OER/D/U:
2 - U/EE
3 - ST/P/C (1-CRS, 1-Treasury)
Orig. & 1 - (Congressional Support Office)
I
ST)T
STAT
,Approved For Release 2005/01/10 CIA-RDP86TOQ608ROIYQ600070021 Xr`?m
STAT
Congressional
 L lN.luL ~ 1~ r' ..'~'~??~1
1 It ~ N N '/? JIY
Approved For Release 2005/01/10 CIA-RDP86T00608R000600070021-7
East German Budget
1. The East German state budget consists of the
budget of the republic, the budgets of regional
authorities, and the centrally planned financial
resources of state-owned enterprises (VEBs). Because
it contains valuable information on important and
sensitive aspects of economic activity and state policy,
h 1d
detailed information on its contents is closely e .
The Ministry of Finance insures that versions circulated
within the government are carefully edited, and only
selected figures are released for publication. Moreover,
the unattributed portion of expenditures swelled from
34% to 46% of the budget during 1973-1975, probably a
reflection of massive government subsidies to insulate
the domestic price level from Western inflation.
2. The budget supports industrial and agricultural
enterprises with subsidies and other payments, but most
investment funds are now channelled through the banking
system. The budget also makes substantial direct
payments to individuals, mostly as pensions and social.
security benefits. It is the sole source of financing
for national defense, civil administration, and public
services.
3. Turnover taxes, paid by producers but levied
mostly on consumer 3cods, provide a large share of budge it
revenues. Profit taxes on socialized enterprises are
also an important source of revenue,', as are various taxes
on private concerns. Additional revenues are derived from
direct wage and income taxes, land-use taxes and payments
into the social security fund by employees, employers,
cooperative members, and the self-employed.
.Approved For Release 005/01/10 : CIA-RDP86T00608ROO.0600070021'.
 ?
Approved For. Release 2605/01/10 : CIA-RDP86t00608R60D600070021 -7;.
Approved For. Release 2005/01/10 : CIA-RDP86T00608R000600070021-7
Consolid,,,ted State Budgets
(Million GDR Marks)
1.972
1973
1974
1975
Revenues
Social security
10,203.7
10,470.4
10,877.6
11,372.2
Production, inventory, profits,
and output taxes and other
receipts
44,229.8
51,297.7
57,198.8
64,890.6
Socialist cooperatives and
workers' taxes
1,062.6
1,050.8
1,090.6
1,114.0
3
Oth
26,805.2
27,442.9
30,395.9
29,089.
ers
Total revenues
82,301.3
90,261.8
99,562.9
106,466.1
Of which:
Central government
64,381.9
70,498.0
77,115,5
82,000.5
6
Bezirke
17,919.4
19,763.8
22,447.4
24,465.
Expenditures
Education, culture, health,
housing, subsidies
22,681.4
24,826.5
26,693.7
28,045.7
Replacement of fixed assets for
sports, education, etc.
979.1
1,002.9
1,049.6
1,093.2
1
419
Social security
15,904.8
18,569.6
19,811.1
.
20,
Financing of scientific tasks and
investments of VEB's, state
combines, and 'NB's
3,965.3
5,214.5
6,714.2
1,022.7 1
State farms investments, price
surcharges, soil improvement, etc.
2,202.8
2,061.3
2,157.0
2,110.5
64
0
Defense
7,625.0
8,328.0
8,938.0
.
9,5
53
9
9
885
28
196.0
30
34,154.3
.
44,1
Others
.
,
,
.
Total expenditures
82,244.3
90,198.8
99,517.9
106,409.1
Of which:
Central government
64,324.9 '70,435.0
'
77,070.5
81,943.5
6
Bezirke
.19,763.8
17,919.4
22,447.4
24,465.
1. Scientific tasks only.