Ministry of Finance (Soviet Union)

Ministry Of Finance (Soviet Union)

The Ministry of Finance of the Union of Soviet Socialist Republics (USSR) (Russian: Министерство финансов СССР), formed on 15 March 1946, was one of the most important government offices in the Soviet Union. Until 1946 it was known as the People's Commissariat for Finance (Russian: Народный комиссариат финансов – Narodnyi komissariat finansov, or "Narkomfin"). Narkomfin, at the all-Union level, was established on 6 July 1923 after the signing of the Treaty on the Creation of the USSR, and was based upon the People's Commissariat for Finance of the Russian Soviet Federative Socialist Republic (RSFSR) formed in 1917. The Ministry was led by the Minister of Finance, prior to 1946 a Commissar, who was nominated by the Chairman of the Council of Ministers and then confirmed by the Presidium of the Supreme Soviet. The minister was a member of the Council of Ministers.

During the Russian Civil War, and immediately afterwards, the Commissariat usually confiscated property to support government operations. Following a short period of stability after the civil war the Commissariat introduced several governmental taxes on the population. The commissariat's structure differed little from its Tsarist predecessor, the only notable difference was that the Soviet ministry was very centralised while the Tsarist's finance ministry was a very decentralised one. The Commissariat, and later the Ministry, prepared the state budget in a joint process with its republican and local branches. The Ministry's structure went through few changes due to the Soviet government's conservative approaches to change. Soviet leader Mikhail Gorbachev introduced several reforms during his rule which had the unintended consequence of considerably hurting the ministry's prestige.