1951-1954 GDR BUDGETS, 1951-1952 BUDGET FULFILLMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700200187-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 25
• Document Creation Date: December 22, 2016
• Document Release Date: August 31, 2011
• Sequence Number: 187
• Publication Date: November 1, 1954
• Content Type: REPORT

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CLASSIFICATION C-O-N-F-I-D-E-N-T-I-A-L
CENTRAL INTELLIGENCE AGENCY
INFORMATION FROM
FOREIGN DOCUMENTS
OR RADIO BROADCASTS
COUNTRY GDR
SUBJECT Economic - Government budget
HOW
PUBLISHED Daily newspapers and periodicals
WHERE
PUBLISHED Berlin
DATE
PUBLISHED May 1951-18 Feb 1954
LANGUAGE German
. OOLw pT L IOb.T10, UI.LTL. T,[ F.TIO,..
Of IT,. O,IT.O LT.H.- o?LI
_-- .,[,..
NTO
L.TIO, 01 IL LO,Tl,T1 T...?........T y,O,....... I......O.YII
.,,,LIT., L... T..........
REPORT
CD NO.
DATE OF
INFORMATION 1951-1954
DATE DIST. / I/OOF 1954
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
1111-14 GDR BUDGETS 1951 1952 atmGFT F L
FIIJ.MERT
[This report compares the GDR budgets from 1951 through 1954 and
shows the fulfillment of the 1951 and 1952 budgets.
Although each budget becomes retroactively effective as of 1 January
of the year for which it is intended, the various budgets were actually
passed on the following dates: 1951, 13 April 1951; 1952, 19 June 1952;
19953, 6 February 1953; 1953 revised, 8 October 1953; 1954, 18 February
In 195 the GDR state budget was revised for the first time in the
existence of the GDR. The official explanation was that the New Course,
adopted by the GDR after the June 1953 uprisings, demanded a revised budget
to supply better the funds for carrying out its aims. The ostensible aim of
the New Course is improvement of the living conditions of the population as a
whole by emphasizing the manufacture of consumer goods and deemphasizing the
heavy industry production.
As used in this report, the term GDR state budget refers to the total
budget of the entire GDR governmental machinery; the term budget of the
republic refers to the budget of the central governmental machinery and does
not include the separate budgets of the various Laender or Bezirke. Thus,
the GDR state budget consists of the budget of the republic plus the budgets
of the Laender or Bezirke.
Until 23 July 1952 the GDR, for administrative purposes, was divided into
five Laender (administrative divisions). On that date an administrative
reform bill was passed by the GDR government, changing the five Leander into
14 Bezirke, four of the Laender being replaced by three Bezirke each and one
Land by two Bezirke. The geographic borders of the Bezirke which replaced
each Land do not coincide exactly with the former borders of that Land.
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A Kreis is the administrative subdivision of a land or Bezirk; each Land or
Bezirk has many Kreise. The Kreis budget figures are included in the Land or
Bezirk budgets.
The budgets of the Laender represent the following approximate percentages
of the total GDR state budgets for each of the following years: 1951, 17 per-
cent; 1952, 15 percent; 1953, 18 percent; 1953 revised, 18 percent; 1954,
20 percent.
In the tables comparing the budgets for the various years, the 1953 and
1954 figures for the Laender, shown in brackets, were not given in the original
budgets but were compiled for this report on the basis of the Bezirk figures
given in the original.
The information given on the revised 1953 budget is all the information
available on that budget. No breakdown of the revised figures for the indi-
vidual Bezirke was found in the sources available.
There is a discrepancy between the figures given in the original 1952
state budget and the 1952 state budget figures given in the table showing
fulfillment of that year's budget. The latter figures are mathematically
correct, the former are not.
The figures for Greater Berlin (East), which appear for the first time in
the GDR state budget for 1953, account for about 50 percent of the total
increase over the 1952 state budget. It is possible of course, that the budget
for Greater Berlin (East) was formerly part of the budget of the republic.
Social insurance was made part of the GDR state budget in 1951.
All the figures given in the report are in Deutsche marks (East).
An attempt has been made in this report to give as much of a comparison
for the various years as possible, even though the amount of information given
for the budgets varied, precluding a comparison of every budget item. The
general trend in the GDR budgets released seems to be to give less and less
information. This trend was particularly noticeable from the 1950 budget to
the '.951 budget.
Numbers in parentheses refer to appended sources.]
C -0 -N -F' -I -D -E -1V JP -I -A -L
50X1-HUM
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GDR State Budgets (in million DM)
Receipts
Expenditures
Surplus for year
Surplus from previous year
Total surplus at end of
fiscal year
Receipts
Expenditures
Surplus for year
Surplus from previous year
Total surplus at end of
fiscal year
1951 1952 1953
(Source 1) (Source 2) (Source 3)
1953 Revised 1954
(Source 4) (Source 5)
25,751.4
31,795.1
34,698.5
33,901.1
35,696.1
25,488.o
31,736.6
34,688.5
33,888.1
35,681.3
263.4
58.5
10.0
13.0
14.8
466.1
696.2
912.2
1,010.7
1,031.4
1,023.7
1,046.2
Budget of the Republic (in million TM)
1951
1952
1
(Source 1)
(Source 2)
953
(Source 3)
1953 Revised
(Source 4)
1954
(Source 5)
21,168.4
26,890.7
28,415.5
27,618.7
28,492.3
20,804.8
26,611.4
28 300.9
27,500.3
28,479.6
363.6
279.3
114.6
118.4
12.7
228.9
326.5
642.6
741.0
833.4
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BCZIRK CMEMNITZ
[RENAMED KARL-MARX-
STADT'IN 1953]
BCZIRK MAGDEBURG
BCZIRK HALLE
THUER INGEN
BEZ IRK ERFURT
BCZIRK GCRA
BCZIRK SUHL
[ADJOINS PAGE 5 HERO.]
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1952
(SouRCE 2)
SURPLUS
'39.9
EXPENDI-
R[CEIPTS TURFS SURPLUS RECEIPTS
1951?
(SOURCE.3)
EXPENDI-
SURPLUS
1.615.2 1.568.8 46.4 [1.588.4] [1.542.8] [45.6]
-. -- - - 614.6 596.8 17.8
- - - - - - 419.0 407.0 12.0
1954
(SOURCE 5)
EXPENDI-
RECEIPTS TURF! SURPLUS
[1.861.9] 11.807.71 [54.21
673.7 654.o 19.7
539.1 523.5 15.6
- -
554.8
539.0
15.8
649.1
630.2
18.9
34.0
11-035-31
[1.005.3]
[30.01
[1.209.11
[1.173.9]
[35.2]
- -
443.4
430.6
12.8
545.0
529.2
15.8
- -
591.9
574.7
17.2
664.1
644.7.
19.4
758.6
737.1
21.5
863.7
839.5
24.2
[761.6]
[739.8]
(21.81
[934.3]
(907.1]
[27.21
- -
382.8
371.8
11.0
'445.6
432.6
13.0
- -
226 0
2r9.5
6.5
290.2
281.7
8.5
152.8
148.5
4.3
198.5
192.8
5.7
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BRANDCNBURG
BCZIRK POTDDAM
BCZIRK FRANKFURT/OOCR
_BCZIRK COTTBUS
MCCKLCMBURO
BCZIRK ROBTOCK
BCZIRK SCHWERIN
BCZIRK REUBRAMOCNBURG
BERLIN
[809.81
[786.41
[23.41
382.8
371.8
11.0
193.1
187.5
5.6
233.9
227:1.
6.8
[775.01
[752.81
[22.21
308.6
299.8
. 8.8
249.3
242.2
7.1
217.1
210.8
6.3
1.580.5 1.560.5 20.0
1958.61
[930.9)
[27.71
447.2
434.4
12.8
246.8
239.6
7.2
264:6
256.9
7.7
1993.91
[965.11
[28.81
-4u:2
399.3
11.9
292.8
284.4
8.4
289.9
281:4
8.5
1.444.o
017.0
27.0
?[TNC3C FIGURE, ARE FOR THE ORIGINAL 1953 BUDGET. THE BREAKDOWN OF THE REVILED 1953 BUDGET FOR THE INDIVIDUAL BCZIRK[ 13 NOT AVAILABLE.]
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Financial Plan for the People-Owned Economy (in Million DM)
1952
4,228.0 4,743.9
4,491.9 4,743.9
Reserves (which cannot be used for
any purpose other than social
insurance) 195.4
953 Revised 3.954
4,700.9 5,888.1
5,089.3 5,758.7
-- ** 129.4
* The budget of the republic will contribute 263.9 million 114 to make up the deficit caused by the excess of
expenditures over receipts. (2)
Payments to the public treasury [by the
.people-owned economy]
Payments to the director funds [by the
people-owned economy]
Subsidies from the public treasury [to the
people-owned economy]
(Source 1) (source 2) (source :V xevlsed 25
3) (Source 4) (Source 5)
2,966.4
271.1
2,385.5
3,925.1 8,185.8
351.2 392.8
4,019.5 5,091.7
7,212.2 10,441.5
363.2 595.9
5,839.4 5,759.4
Social Insurance Budget (in Million IM)
ItV 1951
ItiJ 1
Im Receipts
. IH 4,171.8
** The revised 1953 budget provides for a state) subsidy of 388.4 million IM to make up the deficit caused by
the excess of expenditures over receipts. (4)
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1951 and 1952 Budget Provisions for the,Financing of Expenditures of Laender, Kreise and C
(Percentage of Total Taxes Collected in'?Each land Tn P- All---4 ' o~unitiep
Sachsen-Anbalt
Thueringen
Mecklenburg
8.5
13.6
22
-.,14.5 _
14.5
30
20.0
20.0
30
20.0
20.0
33.2
29.1
26.2
5.0
5.0
50.0
10.4
10.4
50.0
12.4
12.4
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'1951-and: 1952 Budget Provisions for Grants to Laender, Kreise, and Coumuaities
From the Budget of the Republic (percentage of Total Taxes Collected in Each
Land.tq Be Allocated. to the Various Kreise in 'That Land)
Sachsen
Craft
Tries Income Taxes
100 46.3
Note: As of 1 January 1951, the business tax and the payroll tax are taxes of the republic and may no
longer be levied by the communities. (1)
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BcZ tRK
RO3TOCK
SCHNCR IN
NEUDRANDCNBURG
POTSDAH
FRANKFURT/ODER
COTTOU3
NAGCCRURG
NALLE
ERFURT
GERA
SUHL
DRESDEN
LEIPZIG
BUDGET
(SOUxcc 3) RcrtacD 1 - 1)uoocT
(SOURCE
INCOME CRAFT WAGE PROPERTY CORPORATION TURNOVER OU38ME33
TAxca TAxc3 TAXES TAXES TAXES INCONC CRAFT WAGE TAXES PROPERTY CORPORATION
TAxca TAx[3 TAXES TAXC- TAXES TURNOVER ROSINESS
IOD 100 100 to() 100 100 TAXES TAxcs TAxca
100 100 100 100 100 100
100.~' 100 100 100 100 100
100 100 100
100 100 100 100 100 100 100 100 100 100 100 100
100 100 100 100 100
too 100 100 100 100
90 100 100 100 too 100
100 100 100 100 100 10 too 100 100 100 100 100 100 10
100
too .100 100 100 100
100 ?80 too 100
100
90 50 to0o o 8o 90 100 90 100 100 too too 100 ~H
100 90 30 1 50 50 90 loo '55 loo 60 60 60 170 ~
30 30 30 100 100 40 90
40 I
90 100 70 90 50 50 30 30 I43
50 too
too 80 95 70 too 11?.1
loo 100 70 70 60 loo la
70 70 90 100 60 70 70 60 60 100 loo 80 8D 70 80 80 1t,
100 , loo ._..75 85 90 8o 80
90 loo 50 6o 60 40
4? 100 50X1-HUM
50 80 10 4o 10 10 loo 75 90 85 90 80
10 70 80 20 60 30 40
40
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PROVISIONS FOR THE FINANCING OP EXPENDITURC3 OF BEZIRKE. KREISE. AND COMMUNITIES
UNDER THE 1953 BUDGET AND THE REVI3CO 1953 BUDGET
(PERCENTAGE OF TOTAL TAXES COLLECTED IN EACH BEZIRK TO BE'ALLOCATED TO THAT BEZIRK)
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Be i '
Rostock
Schwerin
Neubraadenburg
Frankfurt/Oder
Potsdam
-0-A-F-I-D-&-H-T-I-A-L
65.7
59.4-
16.6
23.0
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Under the 1953 budget, the following Bezirke will also receive the state
grants listed below, in'order to balaace,their budgets:(3)
Schwerin
Neubrandeaburg
52.2
49.2
57.2
2.5
Under the revised 1953 budget, the following Bezirke viii also receive
the state grants listed below in order to balance their budgets: (4)
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1954 Budget Provisions for the Financing of Expenditures of Bezirke, Kreise, an4 Coffiunities
(Percentage of Total Taxes Collected in Each Bezirk to Be Allocated to That.Bezirk)
(Source 5)
Bezirk
Rostock
Schwerin
Neubrandenburg
Potsdam
Frankfurt/Oder
Cottbus
Magdeburg
Halle
Erfurt
Gera
Subl
Dresden
Leipzig
Cheomitz [Karl-
Marx-Stadt]
Berlin [East]
80 75 70 70 50
100 70 100 80 85
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Income and Corpo-
ration Taxes of Craft Wage Property Turnover Taxes of Business Taxes of Agriculture
Private Industry Taxes Ta
aes Taxes Private Industry *Private Industry.
100 100 100 100 100 100
100 100 100 100 100 100
100 100 100 100 100 100
100 100 100 100 100 100
100 100 100 100 . 100 100
100 100 100 100 100 100
- 80 80. 90 90 70 80
100 100. 90 95 90 90
00
X
100 100 100 100 100
100 100 100 100 100 100
80 80 80 70 70 70
60 90 70 90 60 60
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Under the 1954 budget, the following Bezirke will also receive the
,state grants listed below, in order'to balance their budgets:(5)
Bezirk
Amount of Grant
(in million No
Rostock
133.4
Schverin
100.5
Aeubrandenburg
108.5
Potsdam
59.1
Frankfurt/Odor
48.8
Cottbus
11.9
Magdeburg
47.1
Gera
14.1
Buhl
5.2
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Provisions for Long-Term Credits Under the 1951-1954 Budgets (in million DM)
1951 '1252 1 M53 Revised R4
(Source 1) (Source 2) (Source3) Source (Source 5)
Total amount 490
Including:
Construction work for new peasants 155
Construction of private housing 96
Construction of trade-union and public housing 60
Private industry 80
Total amount to be financed from the following:
State budget 100
Bank funds 120
Deposits with "capital-accumulation offices" 270
.445 416 707.2 873
94
251
*To be used for LPGs (Agricultural Production Cooperatives)
Note: The 1951 budget contains a provision to'the effect that the Deutsche Notenbank (German Bank of Issue)
must draw up a plan for short-term credits for each quarter of 1951 and submit the plans to the GDR Ministry
of Finance for approval. The plans also require confirmation by the GDR government.(1) [No such provisions were
contained in any of the subsequent budgets.]
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V i
Investments under the 1951 Budget
1. In agreement with the [1951] Economic Plan, 3,814,000,000 DM have
been authorized for investments during 1951. This amount will be obtained
as follows (in million DM):
From the public treasury
From funds of licensees [possibly
SAGs (Soviet corporations)]
712.3
Total
3,455.1
Greater Berlin [East]
investments
358.9
Grand total
3,814.0
2. The authorized investors are required to furnish, or subcontract
for, the construction projects provided for in the investment plan, and to
decrease their production costs by 7 percent. The investment bank must
retain the sums thus saved, which amount to 121 million IN.
3. Amortizations are to be used as follows: 65 percent for invest-
ments, 35 percent for general repairs. Three percent of the total amor-
tization payments (to be taken only from that part earmarked for general
repairs) may be used for small investments.
4? The necessary implementation regulations for the above are to be
issued. by the State Planning Commission,
Finance.(],) together with the GDR Ministry of
Main Receipts of State Budget (1951 Budget Only)
be inReceiptsfofmthe4ppubl.~asury from the people-owned economy are to
is 12c ' ' IM in 1950 to 2,966,400,000 DM in 1951. This
97 percent of the entire state budget receipts, compared to 9.58 per-
cent in 1950.
The percentage. of total state budget revenues obtained from taxes will
be reduced from 69.5 percent in 1950 to 66.1 percent in 1951.,(1)
Main Expenditures of State Budget (1951 Budget Only)
1. Expenditures for expansion of the
increased from 1,212,000,000 IM in 1950 to 2,3 o, people-owned
5,00 m ieconintod 951 to be
percentage of total state budget expenditures ,s0 s b The
creased from 783 percent in 1950 to 10.5 percent e for t this ite1em'i to be in-
in-
. .nt in 1951-
2. Expenditures for agriculture and forestry are to be increased from
1,302,800,000 DH in 1950 to 1,630,600,000 DM in 1951, an increase of 25.2
percent.
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3? Expenditures for cultural, social, and public health purposes are
to be increased from 5,761,700,000 L*( in 1950 to 7,416,100,000 IM in 1951,
an increase of 28.5 percent. This item amounts to 32.9 percent of tbe'
total budget.
4? Youth and sports expenditures are to be increased from 307 million
124 in 1950 to 524.2 million IM in 1951, an increase of 71 percent.
5. The 1951 state budget provides for 700 million IM for increasing
the state material reserves and for financing projects outside the plan.
6. To cover losses from currency transactions and to repay 1946 loans
by the Laender, 1,175,000,000 124 are appropriated.
7. Total expenditures of the ministries of Interior of the GDR and the
various Laender are to be reduced 16 percent, compared to 1950. Their share
of total expenditures under the state budget is to be decreased from 5.65
percent in 1950 to 3.26 percent in 1951.(l)
451-1953 Budget Provisions for Savings and Reserves
1951 Budget
1. The GDR government has authority for the disposition of reserves
provided for in the state budget.
2. Administrative costs of the GDR government are to be lowered 10-15
percent. The government must set a certain sum which each ministry is to
save. These sums may not be used for expenditures outside the plan.
3. Other savings and excess revenues are to be used as follows:
a. To cover any shortage of receipts.
b. To cover expenditures for economic, cultural, and social pro-
jects not provided for in the plan.
-4. Administrative costs for all agencies of the people-owned economy
and social insurance are to be lowered in 1951, over and above the decrease
in production costs approved in the 1951 budget. The savings thus achieved
are to go to the public ,treasury.(1)
1952 Budget
1. At least 184 million IM are to be saved from the administrative
expenditures provided for in the budget. These savings are to be obtained
as follows:
a., GDR ministries and state secretariats and their subordinate
offices -- 88 million M.
b. Administrations of People-Owned Enterprises (VVBs) -- 80 million IN.
be sas follows: Sachsen -` V111uwb -- 10 million DM, to
be subdivided ubngen, 2.5 million DM: sn,1.5. lliOn~DM_ Sachsen-Anhalt,3.5 million TM;
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2. Strict econosa, measures are to be introduced in the people-owned
enterprises.'
3. Funds saved are to be turned over to the GDR Ministry of Finance
or, in case of funds saved by Land ministries or lower offices, to the
ministries of Finance of Land governments.
4? All exces8 receipts and
i
genu
ne savings (plan item fulfilled by
expenditure of less money than called for in plan) are to be used to cover
expenditures for economic, cultural,
in the plan. social projects not provided for
.
5? The use to which budget reserves or excess receipts and genuine
savings are put is decided by the GDR government, if the GDR state budget
is involved, or by the appropriate governmental body, if Land, Kreis, or
community budgets are involved.(2)
1? Former controls and inspections are no longer adequate for an
effective program of economy measures. More thorough auditing is required;
this must be done at least once a year, in accordance with the principles
contained in the 6 November 1952 Directive, Concerning the Auditing'of the
Finances of the State Administrations and Agencies and the People-owned
Industry. In these audits, particular emphasis must be placed,on ascertain-
ing whether the operation was carried out under strict principles of economy,
whether the fulfillment corresponded to the goals set in the budget, and
whether all receipts provided for in the plan were actually realized.
2. Steps must be taken to assure increased control over the adherence
to the required tables of organization.
3. All excess receipts and savings of budget funds brought about through
the initiative and efforts'of'local offices may be used for additional pro-
jects furthering socialist development. Discretion as to the types of such
projects rests with the local offices.
4. The GDR Ministry of Finance is in charge, of recording and checking
the approved plans, the wage'' nd salary funds, and the funds for administrative
expenditures in state administrations and administrations of people-owned
enterprises.(3)
1954 Budget Provisions Not Included in Tables
(If previous budgets contain similar provisions, such provisions are
added in brackets.]
1. All revenue from turnover taxes, corporation taxes, and business taxes
of the people-owned economy is to go to those state organs in whose budgets
the corresponding financial plans are included.(5) [The 1952 and 1953 budgets
contained identical provisions.(2,3)]
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2. The Bezirke.are to receive 100 percent of.the MPS incomes arising
from rentals and services performed.(5) [Under the 1953 budget, only 50
percent of such incomes is to go to the Bezirke.(3)]
3. Local state organs are to receive 25 percent of the net income
exceeding the 1953 yield of the local people-owned econcer for their own
disposal, in order to finance construction projects and city beautification
projects which are not included in the plan.
4. To finance Kreis expenditures not covered by Kreis receipts, the
Bezirke are to allocate to-the Kreise shares of the property and transportation
taxes, in addition to the turnover, corporation, and business taxes under
paragraph 1 above. Each Kreis is to receive an allocation proportionate to
the tax yield in that Kreis.
5. Lowering of administrative costs:
a. The GDR government, through simplification of operating procedures
of the central government apparatus, must lower administrative costs by 5
percent over 1953.
b. Councils of local organs must save 5 percent of the administrative
costs authorized for 1954. The sums thus saved may be used for-construction
projects and commercial installations not provided for under the plan.
6. A fund for the payment of bonuses is to be set aside. This fund is
to be made up of 1.5 percent of the gross wage and salary fund under the plan.(5)
[The 1953_ budget has an identical provision.(3) Under the 1952 budget, 2.,5
percent instead of 1.5,percent of the gross wage fund is to be set aside for the
bonus fund.(2)]
Provisions for Drawing up Budgets by Land and Kreis Assemblies
1951 and 1952 Budgets
The Land assemblies (Landtage) may draw up their own budgets and confirm
the budgets of the various Kreise and communities under their jurisdiction (1,2)
1953 Budget
The Bezirk Councils (Bezirksraete) may draw up their own budgets and
confirm the budgets of the various Kreise and communities under their jurisdic-
tion .(3)
[No such provisions are given in the 1954 budget.]
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1. The GDR Ministry of Finance is to issue directives concerning regular
reporting on the fulfillment of the budgets of the republic, the Laender or
Bezirke, and the Kreise, and directives
budget organizations. concerning the accountability of all
.
2. The responsible ministries and state secretariats must submit to the
GDR Council of Ministers for approval the quarterly and yearly figures of that
part of the people-owned economy which is under the administration of the GDR
government. Similar steps are to be taken by the Laender or Bezirke, Kreise,
and communities.
3. Failure to report quarterly or yearly fulfillment figures on time will
give the GDR Ministry of Finance or the responsible finance department of the
Land or Bezirk, Kreis, or Community Council the authority to withhold further
appropriations.
4. Regular reports must be made on the implementation of the budget at
the public assemblies, for the purpose of accounting. (1,2,3,)
[No such provisions are given in the 1954 budget.]
Provisions Fixing Responsibilities Under the Budgets
C-O-N-F-I-D-E-N11-I-A-L
Provisions for Re rti on Bu et Fulfillment
1951, 1952, and 1953 Budgets
1951, 1952, and 1953 Budgets
1. :The GDR government, Land governments or.Bezirk councils, and councils
of Kreise and communities are responsible for ascertaining the following:
a. That all revenues come in completely and on time.
b. That all measures provided for under the budget are financed.
c. That all taxes and profits from the people-owned enterprises under
them are sent to the responsible finance office at the appointed time.
d. That budget funds are used economically and for the purposes for
which they were intended.
e. That all possible steps are taken to ensure lowering of adminis-
trative costs.
2. Every minister and state secretary and the chairman of each Kreis,
city, and community council are responsible within their domains for carrying
out the above measures, and for seeing that there is regular control of the
people-owned economy under their jurisdiction and that the clearing system and
accounting are handled according to regulations.(1,2,3)
(No such provisions are given in the 1954 budget.]
C-O-N-F-I-D-E-N-T-I-A-L
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1951, 1952, and 1953 Budgets
1. The Minister of Finance is charged with the control of the budget
appropriations of the republic, the Laender or Bezirke, the Kreise, and the
communities. He must see that such appropriations are used economically and
for the purposes for which intended.
2. The beads of the finance departments of the Land governments or
Bezirk councils have similar duties with regard to the budgets of the Kreise
and communities.
3. The GDR Ministry of Finance and the finance departments of the Laender
or Bezirke and Kreise are authorized to call in unpaid consultants to check the
accounting and clearing methods used in the computation of taxes and contribu-~
tions to the social insurance program.(1,2,3)
[No such provisions are given in the 1954 budget.]
Plan
Fulfillment
Fulfillment (~)
(in million IM)
(in million IM)
Receipts
25,751.4
26,503.4
102.9
Expenditures
25,488.0
26,268.4
103.1
Net surplus of receipts over expenditures: 235.0 million LM
Surplus carried forward from 1950: 461.2 million EM
Total surplus on 31 December 1951: 696.2 million DM
Miscellaneous Figures on 1951 Budget Fulfillment
1. Payments of the people-owned economy to the public treasury increased
42.7 percent over 1950.
2. Receipts from the people-owned economy in 1951 totaled 13 percent of
the entire GDR state budget receipts, compared to 9.48 percent in 1950.
3. Payments from the public treasury to the people-owned economy in 1951
totaled 3,272,000,000 IM, or 14.1 percent of the total expenditures of the GDR
state budget. This was 344 million DM more than provided for under the plan.
4. Payments of taxes by the total GDR economy were 4.3 percent higher than
provided for in the budget. The percentage of total revenue under the GDR state
budget made up of taxes was reduced from 69.5 percent in 1950 to 65.8 percent
in 1951.
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C -O-N-F-I -D-E -R JP-I -A-L
the 24 Ma -- -- -?6= '.?xes exceeded the plan by 3.5 percent, even though
y 1951 Decree on the Reform of Wage Taxes brought about a decrease in
the monthly wage tax receipts.
6. For each 100 IN invested by private enterprise in 1951, profits of 33 M were
ali lleeaving aen etzed.
EM ort each 100 IM this
invested.t totaled 18.70 M,
7. The GDR Ministry of Finance and the subordinate finance offices did
not give sufficient attention to the collection of taxes and other revenues,
with the result that the amount of back taxes due the GDR government increased
by 196 million EM during 1951.
[The following criticisms were made of underfulfillments of budget plans
during 1951:]
8. Only 98.4 percent of the funds provided for in the budget for labor and
social affairs and for public health was actually used in 1951, and only 97.5
percent of the funds provided for in the budget for the fields of public r
science, and culture.
9. Only 59.1 percent of the funds provided for in the budget for the
training of teachers, educators, etc. was utilized, and only 86.1 percent of
the funds earmarked for technical schools.
10. Only 32.8 percent of the funds set aside for the Minist
for training purposes was used. rY of Labor
11. The social insurance program neglected the giving of health cures by
using only 77.5 percent of the funds allocated to it in the budget for that
purpose.
12. Only 67 percent of the funds provided for in the budget for medical
care and outings for children in kindergartens and children's homes was
utilized, and only 86.3 percent of the funds for tuberculosis hospitals, 88.3
percent of the funds for combating tuberculosis, and 91.5 percent of the funds
for sanatoriums were used.
13 Only 68.3 percent of the funds allocated for the installation of
equipment inc,easing the safety and protection of the workers and for technical
supervision was used.
14. Of 7,940,000,000 EM appropriated for cultural and social purposes,
public health, and the.advancement of young people and the sports movement,
only 7,738,000,000 DM were actually spent for these purposes.
At the end of 1951, all the communities in the GDR together shoyed.a
surplus 36 million DM higher than provided for in the plan and,all the Kretse
together showed. a surplus 80.8 million DM higher than planned, totaling a
surplus in excess of plan amounting to 116.8 million DM. Part of this surplus,
however, was brought about by the fact that 67 million DM less than planned were
spent by the Kreise and communities for projects in the fields of public health,
education, and culture. Two reasons given for this fact are that the Kreise
and communities frequently did not receive state grants until the fourth quarter
of 1951, making it impossible to start all the planned projects on time; and
that many of the communities received their plans or approval for their plans
too late to complete them in 1951.(2)
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The 1952 Budget and Its Fulfillment (in million DM)
Area Covered
GDR state budget
Republic budget?
"Leander budgets
Sachsen (total)
Land
Kreise and communities
Land
Thueringen (total)
Land
Kreise and communities
Brandenburg (total)
Land
Kreise.and oomnunities
Mecklenburg (total).
Land-7
31,795.1 31;525.6
26,890.7 261541.1
[1,461.2] [1,5551.9]
408.8 386.4
1,052.4 1,169.5
315.0 305.8
818.4 782.5
(820.4] [837.6]
232.6 214.5
587.8 623.1 .
[844.6] 1809.21
302.9 246.4
'541.7 562.8
[644.8] [693.5]
201:3 201.0
443.5 492.5
(oource 4)
98.7 26,611.4 26,126.7
-- [1,568.8]
94.5 475.0
[839.5]
92.2 247.1
lo6.o 592.4
1,198.0
. 452.5
[840.0]
rulfillment
98.5
98.2
229.7 93.0
610.3 103.0
--
.[872.2]
(824.3]
--
81.3
320.1
265.8
83.0
103.9
552.1
558.5
101.2
--
(682.8]
[721.7]
--
99.9
228.3
221.4
96.9
111.0
454.5
500.3
110.1
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Surplus of receipts over expenditures as of 31 December .195 2 including
the 696.2 m117ion L surplus from 31 December 1951) is as fols:(4)
(
C-O-A-F-I-D-E-H-T-I-A-L
A Covered
Republic budget
Sachsen
Surplus
In million DM
Land
Bezirk Dresden
Bezirk Leipzig
7.8
4.8
Bezirk Cbemnitz
[Karl-Marx-Stadt]
Kreise and communities
Bezirk Dresden
20.7
Bezirk Leipzig
12.3
BeTj1 rk Chemnitz
[. rl-Marx-Stadt)
Sachsen-Anhalt
Land
Bezirk Magdeburg
Bezirk Halle
Kreise and communities
Bezirk Magdeburg
Bezirk Aare
Thueringen
Land
16.7
21.3
38.0
Bezirk Erfurt
Bezirk Gera
Bezirk Buhl
Kreise and communities
Bezirk Erfurt
15.0
Bezirk Gera
9.0
Bezirk Buhl
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Land
Bezirk Rostock
Bezirk Schwerin
Bezirk Neubrendenburg
Kreise and communities
Bezirk Rostock
Bezirk Schwerin
2.8
7.4
3.4
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Area Covered
Brandenburg
Land
Bezirk Potsdam 1.6
Bezirk Frankfurt/Oder 2.2
Bezirk Cottbus 3.5
Kreise and communities
Bezirk Potsdam 7.5
Bezirk Frankfurt/Oder 8.4
Bezirk- Cottbus 73,7
Mecklenburg
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Recapitulation bf the Total 1952 Budget and Its Fulfillment
Receipts
Expenditures
Icy
18 Net surplus on 31 December 1952:
I `~7
14
IH i
Ib ro Republic
IL
I .' Laender
IH Kreise and commnities
19
It+ Total
Plan
(in million IN)
605.8
17.9
'154.7
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Flilfi-llment ( )
99.2
98.5
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1. Berlin, Deutsche Finauzvirtechaft, No 9, May 51
2. Ibid., No 12, Jun 52
3. Berlin, Taegliche Bundachau, 6 Feb 53
4. Deutsche Finenzvirtachaft, No 21, 1953
5? Taegliche Bundschau, 18 Feb 54
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