Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-08-06
New Russian BUDGET
Indicates Decline in
Armed Forces Funds
By the Assoeinied Prsss

MOSCOW. Aug. 6.-Premier
Georgi M. Malenkov's govern
ment presented to the Supreme
Soviet (Parliament) last night
the biggest budget in the history
of the U. S. S. r. More than
one-fifth of the half-trillion
ruble budget is earmarked spe-
officially for the armed forces.
Finance Minister Arseny
zverev told a joint session of
the Supreme Soviet 1853 ex-
penditures would be 53012 bill
lion rubles. OF this armed forces
expenditures are listed at 1902
billion rubles. This would indi-
cate a decrease of SO billion
rubleS from the 1852 armed
forces outlay.
(The Soviet Union values
the ruble at four to the dollar.
This would mean in dollar
equivalents budget of $132.5
billion, of which more than
$27.5 billion would be for the
armed forces. This is not
necessarily the whole Soviet
defense budget picture. how
ever. Western authorities say
Soviet official budgetary eX-
penditures for the military fail
to include all military eX-
penses. Many such expenses
normally listed in the United
States under defense would be
placed in other categories in
the Soviet estimates. There
is no indication, for example,
how much money under the
heading of capital investment
goes for industrial develop
ment required by the military
or into other essentially mill
tary programs. United States
experts estimate that at least
half the total Soviet budget
goes directly or indirectly for
military purposes.
SAB Billion for y. S. Defense.
LAS revised last May. the
total United States budget was
STA billion, of which $43 bill
lion was for defense. United
States spending in the period
ended June 80 totaled just
over $74.5 billion. However.
congressional pairing has
shaved the defense spending
estimate for the next fiscal
year to $34.5 billion. Com
parsons between Soviet and
American budgets are difficult
because of differences in the
operation of the two systemsO
The Soviet budget announce
ments this year came five months
later than normally. In March,
1852, the Supreme Soviet APP
proved a budget calling for total
expenditures just short OF ATT
billion rubles, of which 113,800,-
100000 was earmarked for the
armed forces. In 1851, the figure
for defense was 90 billion.
Zverev's budget, reporting
slight increases in spending on
the national economy and com
munal culture" indicates a sur
plus of 12,800,000.00O rubles.
Soviet government income comes
from various taxes. including
turnover taxes, State-operated
enterprises and various types of
state loans.
The session of the Supreme
Soviet was the first since it met
in mid-March to confirm Malen-
kov as Premier, succeeding Josef
Stain in the post. Also before
the Supreme Soviet were the
interim decisions" of its pre-
sidium, which acts for it be-
tween it's sessions.
MalenKOV ana OCnelS OF Lne
ruling hierarchy of the Com
muniSt Party, cut to nine men,
bers by the purge of Deputy
Premier Lavrenti P. Beria July
10, drew cheers from the legis-
lators
There has been expectation
that this SesSion-Which may
last several days-Would take
approving action in the case of
Beria, charged with plotting
against the government. How
ever, the preliminary sessions
and the budget session provided
no indication of what action. if
any. would be forthcoming.