Status Report on the Expenditures for the Second Five Year Plan
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Expense Chart for the Development of the Second Five Year Plan
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| Infrastructure | Heavy Industry | LCI | Agriculture | Services | Military |
| 1933H1 | 14,61% | 35,96% | 16,85% | 13,48% | 8,99% | 10,11% |
| 1933H2 | 15,79% | 24,21% | 26,32% | 8,42% | 11,58% | 13,68% |
| 1934H1 | 11,21% | 22,43% | 24,30% | 11,21% | 9,35% | 21,50% |
| 1934H2 | 16,82% | 26,17% | 7,48% | 4,67% | 5,61% | 39,25% |
| 1935H1 | 0,00% | 27,03% | 21,62% | 10,81% | 3,38% | 37,16% |
| 1935H2 | 10,00% | 25,00% | 6,67% | 15,00% | 0,83% | 42,50% |
| 1936H1 | 13,43% | 29,85% | 12,69% | 22,39% | 5,22% | 16,42% |
| 1936H2 | 17,91% | 32,84% | 8,96% | 13,43% | 4,48% | 22,39% |
| 1937H1 | 13,33% | 20,00% | 22,22% | 14,07% | 8,89% | 21,48% |
| 1937H2 | 14,72% | 28,22% | 14,72% | 7,98% | 6,13% | 28,22% |
| TOTAL | 12,50% | 27,11% | 15,99% | 12,26% | 6,17% | 25,97% |
Authored by Vladimir Bazarov
Published December 21st 1937
Censored and Limited to Commissariat Leadership on January 14th 1938
The development of heavy industry has once again taken priority, though its spending was much reduced compared to our first five year plan. Nonetheless, we have made great strides in this sector, with the massive efforts directed towards the expansion of Magnitogorsk, Gorky and Zlatoust in particular building up a solid base for further industrial development, proving the effectiveness of the new model of planned cities. Much effort was also put into the exploitation of coal to feed our burgeoning industry, allowing expansion to continue unhindered.
With reactionaries taking over in Germany, combined with the imperialists in Japan taking on a much more belligerent tone, an expansion to our military-industrial base was required. Naturally, as with all matters regarding the development of the productive forces, the task to do so fell upon our hands. To this effect we have taken on Aleksandr Vasilevsky as an advisor on such matters, in order to better inform us on the needs of our military.
While his focus on the massive expansion of the officer corps drew away resources that could have been better used in the development of industry, this has been somewhat mitigated by his successful push for a smaller preparatory force, with preparations for the fielding of 1 million men instead of the more radical 1.5 and 2 million men proposed by incompetents of the like of Voroshilov. Nevertheless, some of the procurement funding was of use for the development of productive forces, notably the development of processes for the synthetization of rubber have found uses in the civilian economy, and the completion of the GAZ plant has freed up much needed trucks. The sale of military equipment to Spain has also provided us with much needed currency reserves, so something was salvaged from other efforts as well.
Following this, was, of course the Light and Chemical Industries, which though not as foundational as that of the heavy industry, still yielded important projects with good results. Of note was the development of the pharmaceutical industry on the back of previously acquired German expertise, which along with important export income, has allowed us to reduce worker attrition and will doubtlessly have useful military purposes. As will the expansions in the petrochemical industry. The mass production of radios for military and civilian use has also been undertaken, propelled by the development and newly established production of bakelite.
Of fourth most importance to the budget was the development of infrastructure. The start of this plan was promising, with the completion of the Stalingrad Hydroeletric Station not only being under budget and ahead of time, but exceeding all expectations in output, with it being comfortably the largest power station in the world, winning a considerable amount of international prestige and electrifying the entire South Volga Region, which has opened many opportunities for the development of industry in that location. In a related note, great strides were made early on in the expansion of the power grid to all corners of the Union in a decisive effort to electrify the various cities and industrial centers scattered throught. Combined with the build up of more efficient diesel rolling stock and associated infrastructure, as well as the start of the laying up of roads, the Union has never been as connected as it now is.
The ministry has also continued its incorrect focus on increasing expenditures on the peasantry. Though projects such as the distribution of fertilizer, the start of factory farming and statistical land management were steps in the right direction, the continued gross misallocation of funds towards cooperatives and new socialist towns has hindered further industrial development. Furthermore, the ministry's soft hand when managing grain price shifts also diminished the prospects of freed up labor that could be put to more productive uses.
Last and not least were services. Though it received limited funding, this sector performed admirably in most regards, with the education of the worker never having been so comprehensive. We have also continued funding the expansion of the hospital system, which along with efforts in expanding higher learning in the health sector, will improve the health and thus the productivity of the worker. Some resources were wasted in pointless anti-religious campaigns, though not enough to significantly compete with other, more important, projects.
Paper classified by order of Anastas Mikoyan to the departmental level, ordered to not be sent up due to insignificance.
