for 1934 was 1,665,000,000 rubles an increase of about fifteen per cent. over the previous year. The actual expenditures for military purposes during 1934 were 5,000,000,000 rubles. Budget figures rose rapidly until in 1938 they amount to over 20,000,000,000 rubles approximately a fifth of the total national budget.
16. The increase in personnel and in military expenditures has been accompanied by a real increase in military effectiveness, but this increased effectiveness is probably not commensurate with the increase in expenditure. The principal branches which have benefited by the increases are the air forces and the mechanized forces.
17. The Red Army compares favorably with the armies of neighboring states in its tank equipment and its mechanized units. It is probable that 4,000 tanks of various types are available for immediate use and the munitions factories producing tanks have reached a satisfactory stage of mass production.
18. The Red Army is provided with a powerful air force which is superior in numbers to the air establishments of any of it's neighbors. The types of planes assigned to the air forces of the Red Army are not entirely satisfactory. In nearly every class, types of planes are known to exist abroad which are superior to Soviet types. This
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