The 1953 Soviet Budget

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01443R000100290003-8
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: September 24, 1998
• Sequence Number: 3
• Publication Date: August 6, 1953
• Content Type: REPORT

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riefing
ust 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 percent 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 decrease 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
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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 government 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 col-
lective farms and the cancellation of all agricultural 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 outlays sup-
ported 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.
Attending the separate sessions were all the members of the
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top party presidium with the exception. of P. K. Ponomarenko,
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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