10 Facts About Gosplan

State Planning Committee, commonly known as Gosplan, was the agency responsible for central economic planning in the Soviet Union.

State Committee for Planning, commonly known as "Gosplan, " was launched as a permanent advisory subcommittee of STO, assigned with the task of conducting detailed economic investigations and providing expert recommendations to the decision-making STO.

Gosplan was formally established by a Sovnarkom decree, dated 22 February 1921.

Gosplan quickly became a leading bureaucratic advocate for central planning and expanded investment in heavy industry, with Leon Trotsky one of the leading political patrons of the agency.

Gosplan was to be consulted regarding proposed economic and financial decrees submitted to the Council of People's Commissars by the various economic People's Commissariats.

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Gosplan had no power of compulsion in this early interval, but was forced to work through Sovnarkom, STO, or the People's Commissariats to have its suggestions implemented by decree.

Gosplan was headquartered at the building now occupied by the State Duma, in Moscow.

Re-examination of roles was required as the introduction of the first five-year plan meant that Gosplan's role was no longer one of prognosis and drafting of 'control figures' since plans had now become orders to act.

Gosplan achieved this using a methodology called the system of 'material balances'.

Gosplan calculated the sum of the country's resources and facilities, established priorities for their use, and handed down output targets and supply allocations to the various economic ministries and through them to every branch and enterprise in the entire economy.