RUSSIA'S 1961 BUDGET IS PEACETIME RECORD; INDUSTRIAL OUTPUT RISE OF 8.8% FORECAST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP68-00046R000200190045-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 23, 2016
• Document Release Date: March 19, 2014
• Sequence Number: 45
• Publication Date: December 21, 1960
• Content Type: OPEN SOURCE

Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/03/19 : CIA-RDP68-00046R000200190045-9
A 1-
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PrsSs.
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QEC 2 1 1960
Nt,t11-
/51.d IT'S 1961 Budget Is' Peacetime Recor
" nth! strial, Outpul Rise of 8.8% Forecast
. .1
I , 11 ,;,1 Si .; r. I r RI/11Y RerIrrer
'6? SiMsiGTON--hussia unveiled Its 1961
issiget whtch as usual', is more a Communist
propagawda document than a disclosure of
specqic >pending plans.
The budget and its accompanying economic
vothisiton figures, nevertheless, -disclosed ? to
esperts err Russia here an admittedly grow.
? . s -
Defense Costa Cut .
?
Because of this Soviet secrecy. :the Miss' ,
stens ,can claim they lay out much less for
arms, than does the U.S. Red propagandists._
are especially loud with these claims In under- .?
developed nations, often unacquainted with the,
way* of multiple bookkeeping.
According to the .Associated Press, Premier:
Khrushchev studied, the figures in a light blue:
apparently.the result of the reeer'.
elarnp-down on home loans to private indi. vl
nits; experts here"think the Soviets found tl.1.?
private. home building in cramped urban ar,?as
rig Soviet economy With some problem areas. ? was ? diverting; supplies the Moscow bossec
notebook as Mr. Garbuzov pointed out that the ?
Dullomats here said their firaf reports on the ji wanted to use on other projects.
figures from Moscow confirmed their belief. ' - ? ? ? . By planning a .continued increase In f)r.
?that Soviet production of heavy induiti.rial:' t?l17iudget ? ts 6.7% higher than last year's'
equipmen't continues to loom,- that, coneumet
?? ...wo ?
goods prqdUction continues to get only fringe-
s' Mr. Garin:soy said scientific expenditures
attention, and that farm output is falling short.
;would be 15% higher this' year at 4 billion new
of.Premier Khrushciteve demands.. ? ?
? bles.
The Associated Press reported , that the .
? ru
American authorities noted scientific ex-
Soviet go4rnment prosented. a record peace- penditures often cloak outlays for missiles and
tinrc budget of 77.5 billion new rubles to fl- weapons .research. The repotted figures Melt-
?
nonce an .8.8% increase in industrial output n cate the Soviets spent more on research in 11?60
:1961. The new ruble becomes the basic Soviet ' than ? the 82.6 billion old . rubles planned. a log their goats. as claimed, ler the current
.
currency January 1. Technically, it is wPrtil ? year. ago.is aleven-yet:r eeonomie plan that began in 1958.
10 old. rubles, which had an official value of ? In a epeeth.in FOrt Worth last night, prepared
before the Soviet budget figures came out, the.
? 25 American cents each. In purchasing power,
deputy director of thc Central. Intelligence
however, the old ruble has 'sten worth about
1
Agency/ Air 'Force Ger.. C. P., Cabell, said: 0 tents, meaning that the new ruble will have
"Like ter they have a farm prAlem. Their
purchasing power of about $1,? Ths.. Russians
problem., however, is the *e act opposite ot ,
have .pmviously recognized this Inwer-then?
ours. They need to iiicrease farm production.
claimed value of the old ruble this tall in some
With reaped to industrial goals which they
, monetary sleight of hand which arnOunted to
have set for themselves., we believe that they
a devaluation IF. the official value of the ?old
eign trade and aid at about the recent rat:-..
Mr.. Khrushchev males clear he intends V;
ftillpw his .so,callecf, "peaceful coexistence.-
caMpr,4.1.01, despite Chinese Comnit.rust
lions. Aid ?mtatkitics quoted by Inc Krentlit,
aides will obvioaely he used as a Cold War
talking point by be Reds, U.S. diplomats fig.
uTe?
U.S. Officials think the Russian's are meet.
Rise in Heavy Industry Outpat .
Plans for the 8.8% indttstrial expansion
tivete outlined by Deputy Premier Vladimir
Novikov, chairman of the State Planniag Com.
mittee. He predicted 'a .9!5% rise in the output'
of heavy industry att4.6.9% higher output. of
consumer 'goods. He .clairtted the Soviet Union
already has surpassed ? the U.S. in productior.
of timber, iron ore, . wool cloth,. fish, auger,
millCand butter. ? . ?
, Praduction goala ha listed for 1961 are: Pig
iron,'? 51,200,000 . torts;? ? steel, , 71,340,000 torts;
roi.led,, steel. 03,270,000 ? tons; oil, 164.000,000
tenet' and, electricity, . 327'. billion kilowatt-
hours. ? ? , p '.? ?
? ' Mr. Novikov eald We year has brought
production increases of 5,000,000 tons of . steel,
will meet them. and. that the regime will not!
ruble. The value .of the *new ruble is officially
i pegged by RI/ssiii. ?at 61.11. the greatly hampered by domestic pressures It
?
?
? .for more coosumer goods."' "?
sas Billion Budget ' . .
?
.?
? On the basis of the official dollar. value ot
: the new ruble; the 1961 Soviet budget 'would be
??? .? , ? ? .
; equal to about $86 In contrast, the U.S. ? ? . .4.
1 budget. fOr the year ending next June ao is
about $80 billion.
??? ' ?,
According to the Asloilated ? Press. in .Mos- 18,000,000 tins of oil and 80 billion kilowatt- . . ?
' cow, Finance Minister Vaailli Carbtiov told houra of electricity. Cultivated land will in-' ? -?
?, ? .
. applauding deputies of the supreme. soviet;ll'crease by more than 7,400,000 hcres in .1961, he
?
said, , bringing the national total to more ?
than 508,500,000 acres: He predicted a subalan-
tial increase in grain over 'the 1958 record
crop, but gave no figures; ? ? .
Mr. Novikov ?forecast -a 6.5% rise' in
foreign trade, including a 22% increase in trade
with newly independent nations. Capital in-
. Vestment.. he said; i?svill rise 81.70 from 1960 in
the steel Industry and; will be three times the
1960 lime in the chemlc:al industry. The So-
viet Union will participate under technical aid
pregratris .builiihng 860 plants in other Colfitt
, .
the Soviet parliaraent, ?that defense expendi-
tures are being cut "thanks to the Unilateral
? ?? reduction of the Soviet armed forces" this
year. They make up.11.9% of the total budget,
; compared with 12.9% for 1960..
Mr. Garbuzov said; however, that -defense
' costs will remaln.relativelN 'high "until agree-
' merit of gcneral and full .disarmament Can be.
? reached."
. ? .
? The 196i cost of the. armed forces was
? put at 9,220,000,000 new rubles, compared
i with 96,100,000,000 old rubles, or 9,610,000,00 tries, he said.? ? . . ? ?
? ;new rubles, in 1960. , ?
. ? Trouble to Agriculture - .
; Experts on 'Soviet Russia here oonaideor ? Aftek analyzing these reports from the peWs
the defense figures meaningless. This portion service% and early embassy tables, diplortants
...: of the Soviet budgot covers the Costs of fed-, here noted the Russians avoided much talk
' ing and housing troops and other housekeeP-'?ahout.11360's, agricolturakfeata. Thfs indicates
'itig expenses. It does not, however, include.. Premier Khrushchev continues to have trouble
'
spending" on the Wolfs of modern warfare?, producing the increased ainonnts of food he
. , atomic warheads, intercontinental balitsticl: seeks. Experts on 'Russia believe the presider
. missiles, nuclepir submarines and the like.- puts ia ptainIUM Ols raising- food prodziction so
;Spending for Athese items is hidden away unre-'? he can keep' happy, the growing number at .
? ? ?
. ? ?
' :ported in Whet parts of t-hd budget. The .14.13- ;Ioviet citizens living in urban and industrial ' ? ??
.? .
, :defense budget of 316 billion, on the other hand.-!rnmniunities. . . .
:includes all oillita. outlays. including ntilitary.';
i Houstng construction has apparently fallen
!foreign aid and. atomic arms. - ? ' ? 'II efiloo according to Moscow Meesages. That's ,,?
. - ? ,
.?
?' ? 't
. ? ?
norlaccifipprl in Part - Sanitized Copv Approved for Release @ 50-Yr 2014/03/19: CIA-Rbk8-00046R000200190045-9