SOVIET RUSSIA. Brief history of the USSR
In the course of industrialization, a huge dispersion of funds instead of their concentration caused a huge thirst. The number of construction projects started and under construction has multiplied: by the end of the first five-year plan, 76% of investments were frozen in them against 31% at the beginning.
Financial resources for investment in the economy were extremely scarce. Hopes for obtaining funds from concessions, for foreign loans did not materialize, and foreign trade operations did not give due revenue.
For this reason, the XIV Congress of the CPSU (b), taking the course towards the industrialization of the country at the end of 1925, identified the main domestic sources of its implementation as the main sources. The problem of accumulation arose, thus, no longer as a subject of theoretical disputes or political clashes, but as an inexorable practical need. Ways to solve it were different.
For 1929-1932 The outstanding money supply increased 4 times. The government could not continue the policy of previous years, aimed at maintaining stable prices or even reducing them.
Starting in 1931, the course was taken for a significant increase in prices for all consumer goods. The hope of receiving funds from the growing profits of state-owned industrial enterprises was justified only marginally.
Direct and indirect taxes were therefore a significant source of replenishment. Since 1931, the main source of budget revenues has been the tax on turnover, charged on the price of all goods in retail trade and, therefore, automatically levied.
Another source was loans placed among the population. Initially, they were not of a compulsory nature, but over time they became mandatory.
Funds to pay for overseas purchases turned out to be even more difficult. The goods that the USSR paid for its imports at that time were mainly bread, timber, oil, and furs. The food situation in the country remained extremely difficult. Thus, it was not surplus that was exported abroad, but the bread that was withdrawn from domestic circulation.
For the needs of industrialization and payment of overseas bills, artistic works from museums were sold; with the help of the OGPU, gold was taken from individuals, bronze bells of churches were removed and melted, and gold from the domes of churches were removed.
However, one of the main sources of accumulation was agriculture, which was supposed to contribute to the growth of industrial production.
History of the Soviet Union and Russia in the 20th Century