THE 1953 SOVIET BUDGET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91T01172R000200330004-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 15, 2016
• Document Release Date: April 16, 2003
• Sequence Number: 4
• Publication Date: August 6, 1953
• Content Type: REPORT

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CIA No. 8437 CENTRAL INTELLIGENCE AGENCY
Copy No. 9 OFFICE OF CURRENT INTELLIGENCE
6 August 1953
THE 1953 SOVIET BUDGET
For the first time since 1947 the Soviet budget, presented
on 5 August, shows a decline in direct military expenditures.
In contrast to 16 and 18 percent increases for each of the
preceding two years, the 1953 military allocation is 3.2 per-
cent below 1952. Nevertheless, direct allotments to the military,
not including defense outlays hidden in other parts of the
budget, are still more than one-fifth of total expenditures.
The powerful military capability built up by the USSR
since the war is not significantly affected by this slight de-
crease in defense allotments, particularly since the drain of
supplying armaments for the Korean war has ended. Instead of
increasing defense outlays, the USSR is devoting larger sums
to industrial and agricultural development and has raised capital
investment by more than 9 percent. Such a shift had become
imperative if the major 1955 economic goals of the current Five
Year Plan were to be realized.
Funds for "financing the national economy" show a sharper
increase over the previous year than other parts of the budget.
This indicates that the USSR will continue heavy stress on
basic industrial development. At the same time the new govern-
ment is increasing production and distribution of consumer goods
as part of its publicized "softer" policy toward the Soviet
,people. Typical of this more liberal policy are the very sharp
reductions scheduled for this year and next in taxes levied on
members of collective farms and the cancellation of all agri-
cultural tax arrears.
A departure from previous budgetary practice is the un-
precedented size of undisclosed expenditures, amounting to
about 16 percent of the total. In past years part of these out-
lays supported MVD and MGB administrations as well as government
loans and reserve funds.
Finance minister A. G. Zverev's budget presentation this
year omitted the anti-American references so prevalent in his
1952 speech. No hint as to the reasons for the postponement
of the Supreme Soviet was evident in the opening sessions of
the two houses.
Dccumew No.
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Attending the separate sessions were all the members of
the top party presidium with the exception of P. K. Ponomarenko9
minister of culture and alternate member of the presidium. It
is as yet too early to judge the significance of his absence
since he may appear at a later session.
According to its agenda the Supreme Soviet has still
to confirm the State budget and to endorse the interim decrees
adopted by the presidium of the Supreme Soviet.
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