OUTLAYS ON CONSUMER SERVICES IN THE USSR 1948-60

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R01141A001200080002-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 42
• Document Creation Date: December 23, 2016
• Document Release Date: May 7, 2013
• Sequence Number: 2
• Publication Date: November 1, 1958
• Content Type: REPORT

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N? 38
ECONOMIC INTELLIGENCE REPORT
OUTLAYS ON CONSUMER SERVICES
IN THE USSR
1948 - 60
CIA/RR 150
November 1958
CENTRAL INTELLIGENCE AGENCY
OFFICE OF RESEARCH AND REPORTS
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ECONOMIC INTELLIGENCE REPORT
OUTLAYS ON CONSUMER SERVICES IN THE USSR
1948-60
CIA/RR 150
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
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FOREWORD
This report describes outlays on consumer services in the USSR,
19118-60, examining in detail the relative importance of the various
services and comparing the roles of public organizations and private
individuals in furnishing these services. All estimates have been
made in terms of 1955 prices. The information upon which the report
is based has been derived from published Soviet data. .
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Summary and Conclusions
I. Introduction
CONTENTS
Page
1
2
A. Concept of Consumer Services Adopted for This
Report 2
B. Comparisons with US Expenditures on Services . 3
C. Reliability of Estimates it
II. Education 5
A. General 5
B. Outlays on Education by Organization, 1955 5
C. Outlays on Education by Function, 1955 6
D. Outlays on Education by Type of Cost, 1955 7
III. Health 7
A. General 7
B. Outlays on Health by Organization, 1955 . . 8
C. Outlays on Health by Function, 1955 ...... . 8
D. Outlays on Health by Type of Cost, 1955 9
IV: Housing 9
A. Outlays on Housing by Organization, 1948-60 9
B. Outlays on Housing by Organization, 1955 10
V. Other Consumer Services 10
Appendixes
Appendix A. Statistical Tables 13
Appendix B. Methodology 23
Appendix C. Source References 37
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Tables.
Page
1. Estimated Outlays on Consumer Services in the USSR,
1948-60 14
2. Estimated Indexes of Per Capita Outlays on
Consumer Services in the USSR) 1948-60 15
3. Estimated Ratios of .Outlays on Consumer
Services to Gross National Product in the
USSR, Selected Years, 1948-60 16
4. Estimated Percentage. Composition of Outlays on
Consumer Services in the USSR, 1948-60 17
5. Estimated Public Outlays on Consumer Services in the
USSR, 1948-60 18
6. Estimated Private Outlays on Consumer Services in the
USSR, 1948-60 19
7. Estimated Outlays on Education in the USSR, by Tyle
of Cost, 1948-60 20
8. Estimated Outlays on Health in the USSR, by Type
of Cost, 1948-60 ........ . . . . . . 21
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OUTLAYS ON CONSUMER SERVICES IN THE USSR*
. 1948-60
Summary and Conclusions
It is estimated that, by 1960, outlays on consumer services in
the USSR will have increased from 143.3 billion rubles** in 1948
to 318.5 billion rubles -- 2.2 times the level of 1948 and a per
capita increase of 1.8 times. (See Table 1.***)
In 1957, education accounted for 35 percent of outlays on con-
sumer services, health for 19 percent, housing maintenance and con-
struction for 22 percent, and all the others -- household operations,
personal transportation, recreation and culture, repair services, and
personal care -- for 24 percent.
Those consumer services which were already established on a broad
scale by 1948, such as education and health or those considered of
secondary importance by the Soviet planners increased relatively little
between 1948 and 1960. On a per capita basis, outlays on education in
1948 were 82 percent of those in 1955, and between 1955 and 1960 -- when
consumer services as a whole are expected to rise by 39 percent -- they
are expected to rise by only 13 percent. Outlays on health in 1948 were
79 percent of those in 1955, on a per capita basis, and between 1955
and 1960 are expected to rise by 20 percent. (See Table 2.****)
Outlays on housing maintenance and construction did not increase
much between 1948 and 1955, those of 1948 being 82 percent of 1955 on
a per capita basis. In 1957 the Soviet government issued a decree
which, if implemented as expected, will place housing a close second to
education among tonsumer services by 1960. Housing activity in 1960 is
expected to be approximately double the level of 1956 on a per capita
basis. Household expenditures on utilities and communications services
follow the general trend in housing but should not rise so steeply dur-
ing 1955-60. It is estimated that outlays for these household operations,
on a per capita basis, will be 47 percent higher in 1960 than in 1955.
Personal transportation is one of the rapidly growing consumer
services. On a per capita basis, outlays on personal transportation
in 1955-were more than double the 1948 level, and a further rise of
63 percent is foretast for 1960. Outlays on recreational and cultural
* The estimates and conclusions in this report represent the best
judgment of this Office as of 1 June 1958.
** All ruble values in this report for years other than 1955 were
obtained by applying 1955 prices to the quantities of services esti-
mated to have been supplied in the other years.
*** Appendix A, p. 14, below.
XXXX Appendix A, p. 15, below.
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services, which almost doubled per capita between 1948 and 1955, will
advance, it is estimated, only 18 percent between 1955 and 1960. One
of the reasons for this slowing down of growth is that existing cul-
tural and recreational facilities are already well developed, and
further expansion of libraries, clubs, and religious facilities is
accordingly not of pressing importance. On a per capita basis, out-
lays on repair services -- which include such activities as tailoring
and the repair of household appliances -- in 1948 were 66 percent of
1955 and will be an estimated 35 percent above the 1955 level by 1960.
Personal care shows the smallest increase of any of the household
services. In 1948, outlays on personal care were 89 percent of the
per capita level attained in 1955, and it is estimated that the 1960
level will be only 10 percent above that of 1955.
Although the estimated value of Soviet consumer services, cal-
culated in 1955 prices, has increased each year during 1948-60, con-
sumer services as a portion of gross national product (GNP) have held
steady at a level of approximately one-sixth of GNP. Ordinarily one
would expect that consumer services in an economy being rapidly in-
dustrialized and urbanized would constitute a growing proportion of
GNP, but consumer services in the USSR have claim on resources only
to the extent that they support the growth of a healthy, well-educated,
and moderately contented labor force.
Public organizations provide approximately two-thirds of the cost
of consumer services, and private individuals one-third. The percent-
age contribution of public organizations is declining slowly, however,
from a high of 68 percent in 1950 to 62 percent in 1960. Public out-
lays are extremely Important in education and health (estimated at
95 percent and 87 percent, respectively, in 1958) and of considerable
importance in housing and recreation and culture (estimated at 58 per-
cent and 30 percent, respectively, in 1958). Public organizations
pay none of the cost of household operations, personal transportation,
repair services, and personal care.
I. Introduction.
A. Concept of Consumer Services Adopted for This Report.
The categories of Soviet consumer services included in this
report are education, health, housing, household operations, per-
sonal transportation, recreation and culture, repair services, and
personal care. The outlay on each consumer service is taken as the
economic value of the service at the final stage of production, re-
gardless of (1) whether the service was purchased directly by a
consumer or supplied "free" by a government organization, (2) whether
the service involved a money transaction or was the result of self-
consumption by the producer (and therefore fell outside of normal
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market channels), or (3) whether the service arising from the out-
lay was consumed immediately or over a period of years.
The first consideration, of private versus public outlay, is
exemplified by the situation in education, 95 percent of the expendi-
tures for education being made through the budgets of public organiza-
tions and only 5 percent through household budgets. The second con-
sideration, of actual versus imputed outlay, is exemplified by hous-
ing, it being necessary to estimate the value of the maintenance of
private housing performed by individual owners operating outside of
any direct tie to the market. The third consideration, of present
versus future consumption, arises most strongly in the case of educa-
tion, health, recreation and welfare, and, especially, housing. The
erection of new schools, hospitals, libraries, and apartment build-
ings (over and above those retired from use) represents the use of
economic resources to broaden the flow of services to the consumer.
The using up of these services by the consumer, however, takes place
only over a period of time, and the consumer's well-being in the
current year is increased by only a fraction of the value of the
economic resources currently being allocated in his behalf. An ad-
vantage of including such "investment" in consumer facilities within
total outlays is that this procedure puts economic policy toward the
consumer in clearer perspective. The new Soviet housing program, for
example, will cause per capita outlays on housing to more than double
in 1960 compared with 1955, but the rise would not be nearly so re-
markable -- only 24 percent -- if measured in terms of the flow of
housing services from the existing housing stock. If, in Table 2,*
the per capita index for housing were made 124 instead of 211, the
index for total services would be 122 instead of 139.
It is only in the case of housing that there is a marked dif-
ference between the results obtained by the method used in this report
and the results obtained by the alternative method of using flows of
services. For instance, in the case of health and education, as
shown in Tables 7 and 8.,** the relatively small category "construction"
sets the upper limit to the portion of total outlays going to invest-
ment.***
B. Comparisons with US Expenditures on Services.
Comparison of Soviet expenditures on consumer services with
expenditures in the US is made difficult because of great variations
in the relative values of the ruble and the dollar in the different
sectors of the two economies as well as important differences in
* Appendix A, p. 15, below.
** Appendix A, pp. 20 and 21, respectively, below.
*** The economic outlays listed for household operations, transpor-
tation, repair services, and personal care are believed to cover the
maintenance of capital plant, but the expansion of capital plant --
new waterlines, buses, tailor shops, and barber shops -- is not
covered; data are lacking, and the amounts involved are small.
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governmental policy on the financial support of services. The USSR,
with a population almost 20 percent greater than the population of
the US, maintains an educational system of roughly the same size,
measured by numbers of children and young people in the varieus
grades, numbers of teachers, and the level of physical facilities.
As the GNP of the USSR is 4o percent that of the US, the educational
effort of the USSR is proportionately greater. Objectives of educa-
tion in the US, however, are more diffused in contrast to those of
Soviet education, whose overriding objective is to train workers and
professionals for their roles as producers in the Soviet state.
Medical care in the USSR is quantitatively comparable to care
in the US, and the large gap in quality is being steadily reduced.
Compared with the US, where private medical care predominates, a far
greater proportion of Soviet energies are devoted to public health,
including industrial medicine. In dental care the USSR lags far be-
hind, having only 20 percent as many dentists as in the US to care
for a population almost 20 percent larger.
In housing the Soviet consumer is far worse off than his US
counterpart. Per capita the Soviet urban dweller has 5 square meters
(sq m) of living space compared with 30 sq m in the US, and the
greatly superior quality of US housing makes the difference still
more dramatic. In transportation the ratio in favor of the US con-
sumer is also tremendous, 8 to 1 in terms of passenger miles per
capita and considerably more if the convenience and comfort of the US
consumer's automobile is contrasted with the Soviet consumer's
railroad coach. In most other consumer services the US consumer far
outdistances the Soviet consumer, but in welfare and cultural acti-
vities - which in the USSR are an important instrument for political
indoctrination -- the Soviet consumer benefits from heavy governmental
subsidization.
C. Reliability of Estimates.
Estimates in this report vary widely in reliability.* Esti-
mates for 1955 are in general more reliable than for other years,
because money outlays for 1955 are often available directly from
official Soviet sources, whereas estimates for other years were con-
structed by applying 1955 prices to the quantities of services esti-
mated to have been supplied in the other years. Estimates for the
public sector are often more reliable than for the private, because
statistical data on public expenditures are far more plentiful than
data on private expenditures. In general, the larger the ruble quan-
tity, the higher the degree of reliability.
* For a detailed discussion of the manner in which estimates were
made, including specific estimates for each category of service,
see the Methodology, Appendix B.
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II.- Education.
A. General.
Since 1951 the Soviet standard of education has been compul-
sory 10-year secondary education for all children. Although 10-year
schooling has in fact become normal in urban areas, 7-year schooling
has been typical in rural areas. In 1958 the Soviet government an-
nounced that 10-year compulsory schooling would be rapidly extended
to rural areas. Each year 450,000 graduates of the secondary schools
are admitted to institutions of higher learning, which have a total
enrollment of 2.0 million students.
Outlays on education amounted to 77.9 billion rubles in 1955,
over 20 billion rubles more than in 1948, as shown in Tables 1 and 7.*
By 1960, outlays on education are expected to reach almost 96 bil-
lion rubles, or 23 percent above 1955. One_reason for the rela-
tively small rate of increase in Soviet education, comPared with other
consumer services, has been the decline in enrollments. The number
of regular pupils and students enrolled in the educational system
dropped from 37.3 million in 1950-51 to 33.9 million in 1955-56, 1/**
a result of manpower losses during World War II and the resulting
decline. in births. Another reason for the relatively small rate of
increase in education is the fact that educational facilitieS were
already fairly well developed in 1948.
In 1955, there were 213,000 public schools, 32,000 kinder-
gartens, 765 colleges and universities, and 2,800 scientific insti-
tutes in the USSR. 2/ These facilities are used very intensively,
and further expansion in the scope and standards of Soviet education
will require continuing increases in expenditures on education.
B. Outlays on Education by Organitation: 1955.
Soviet outlays on education in 1955, by organization, are
shown in the following tabulation:
Organization
Value
(Billion Rubles)
State
66.8
Enterprise
6.9
Individual
4.2
Total ? 1E2
* Table 1, p. 14, below, gives aggregative expenditures on educa-
tion. Table 7, p. 20, below, gives expenditures on education divided
among wages, materials, and construction.
** For serially numbered source references, see Appendix C.
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State outlays of 66.8 billion rubles come from the state budget.
Enterprise outlays of 6.9 billion rubles come from publicly con-
trolled funds, with 4.7 billion rubles being accounted for by the
various state industrial ministries. The balance of enterprise
outlays of 2.2 billion rubles comes from other regulated and con-
trolled organizations, trade unions accounting for 1.0 billion
rubles, industrial cooperatives for 0.3 billion rubles, and col-
lective farms for 0.4 billion rubles. There are no private schools
in the Soviet education system. In 1955, private expenditures on
education in the USSR amounted to 4.2 billion rubles, or 5 percent
of all education outlays. Private expenditures are made for food,
.special fees, and the breakage of equipment. Tuition is a charge
of the past, except in the newly instituted boarding schools. Almost
all students in higher education receive stipends from the state.
C. Outlays on Education by Function, 1955.
Soviet outlays on education in 1955, by function, are shown
in the following tabulation:
Value
Function (Billion Rubles)
General.
37.3
Higher
29.0
Science
11.6
Total
77.9
The largest outlays are those for general education, amounting to
37.3 billion rubles -- the sum of 7.5 billion rubles for preschool
training, 24.7 billion rubles for elementary and secondary schools,
and 5.1 billion rubles for extracurricular activities. Extra-
curricular activities consist of summer playgrounds, pioneer camps,
and schoolchildren's tours. Enrollments were the largest in general
education. In 1955-56, 30.1 million pupils and students were enrolled
in the public schools, and in 1955 the kindergartens accommodated
1.7 million children. 1/
Outlays for higher education in. 1955 amounted to 29.0 billion
rubles. These outlays for higher education include expenditures for
specialized secondary schools (technicums) as well as expenditures
for colleges and universities. Specialized secondary schools, with
an enrollment of 1.9 million in 1955-56, train semiprofessional per-
sOnnel such as toolmakers, laboratory assistants, and nurses.
Colleges and universities, with an enrollment of 2.0 million in ,
1955-56, train professional personnel such as engineers and scien-
tists. LI/
Outlays on science education in 1955, amounting to 11.6 billion
rubles, include expenditures for college and university research, the
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research of scientific institutes, and long-range industrial research.
That part of Soviet industrial research which is a direct cost of
production is not included under this heading.
D. Outlays on Education by Type of Cost, 1955.
Soviet outlays on education in 1955, by type of cost, were
made up mainly of wages and operating materials and supplies. Less
.than 5 percent of all education costs were accounted for by construc-
tion, as shown in the following tabulation:
.
Type of Cost
Value
(Billion Rubles)
Wages
41.6
Operating materials and supplies
32.6
Construction
3.7
Total
77.9
Outlays on education for wages in 1955 amounted to 41.6 billion
rubles, :the sum of payments to the teachers, janitors, and the
administrative workers, as well as stipends, hourly payments for
teaching special courses, and payments to the state budget for
social insurance. Wages vary widely. Mean wages of teachers in
grade schools, including overtime and extra pay, were 8,000 rubles
in 1955. The basic pay of a director of a university with the title
of professor and with a Doctor of Science degree was 96,000 rubles
per year. 5/ The comparable spread in the US is 6 to 1, not 12 to 1.
The Soviet teacher without administrative responsibility receives a
wage about equal to that of.a semiskilled laborer.
III. Health.
A. General. .
Soviet outlays on health amounted to 43.1 billion rubles in
1955, almost 13 billion rubles more than in 1948, as shown in .
Tables 1 and 8.* Outlays on health are expected to reach 56.2 bil-
lion rubles by 1960, or 30 percent above 1955, and health, as a
consumer service, will drop to third place behind housing.:
In 1955, there were 24)000 hospitals with 1.3 million beds,
310,000 doctors, 21,000 dentists, 850,000 semiprofessionals, and
47,000 pharmacists in the USSR. y
* Table 1, p. 14, below, gives aggregative expenditures on health.
Table 8, p. 21, below, gives expenditures on health divided among
wages, materials; and construction.
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B. Outlays on Health by Organization, 1955.?
Outlays on health in 1955, by organization, are shown in the
following tabulation:
Value
Organization (Billion Rubles)
State 33.0
Enterprise 4.6
Individual 5.5
Total 43.1
State outlays on health amounted to 33.0 billion rubles, or three-
fourths of total health outlays in 1955. The outlays by enterprises
on health of 4.6 billion rubles come from publicly controlled funds,
with 3.0 billion rubles being accounted for by industrial ministries,
0.3 billion rubles by industrial cooperatives, and 1.3 billion rubles
by collective farms. In 1955, private expenditures on health amounted
to 5.5 billion rubles, 3.8 billion rubles being for medicines and
drugs, 3/ 1.1 billion rubles for passes to sanatoria and rest homes,
and O. billion rubles for nursery fees. Despite persistent reports
of private health practice and black marketing in medicines and drugs,
there are no indications that these activities are significant in
scope.
C. Outlays on Health by Function 1955._
Outlays on health by function in 1955 were predominantly for
hospitals and other health care institutions, as shown in the fol-
lowing tabulation pi:
Value
Function (Billion Rubles)
Hospitals and other health care institu-
tions 26.8
Maternity and child care 5.2
Sanitation 1.7
Training 3.1
Care of disabled, medical administration,
and other 2.5
Medicines and drugs 3.8
Total 43.1
The 1955 outlays of almost 27 billion rubles on hospitals and other
health institutions include outpatient treatment and home visits.
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D. Outlay's on Health by Type of Cost, 1955.
Outlays on health by type of cost in 1955 are shown in the
following tabulation:
Type of Cost
Value
(Billion Rubles)
Wages
18.9
Operating materials and supplies
21.6
Construction
2.6
Total
43.1
The 1955 outlays of 18.9 billion rubles for wages are second to the
21.6 billion rubles for operating materials and supplies, with con-
struction accounting for only 2.6 billion rubles. The second place
of wages reflects the relatively low wage paid to the Soviet health
worker, including professional personnel, the mean wage of 7,200
rubles for health workers being below the national mean wage of
8,600 rubles. 2/ Trained medical personnel with administrative
duties, however, receive wages and salaries equivalent to adminis-
trators in the education system. The large outlays for materials
are a reflection of the tremendous size of the physical plant.
IV. Housing.
A. Outlays on Housing by Organization, 1948-60.
Outlays on housing amounted to 39.4 billion rubles in 1955,
or. 10.3 billion rubles more than in 1948.* By 1960, outlays on
housing are expected to reach 90.3 billion rubles, almost as much
as the 95.9 billion rubles to be spent on education in 1960. This
tremendous increase in outlays on housing is expected to be brought
about under the 1957 housing decree. 10/ The outlays on housing by
1960 are to be 2.3 times the level of 1955, or 2.1 times on a per
capita basis. By the end of 1960, according to the Soviet plan,
there will be more than 614 million sq.m of living space** in urban
centers as compared with 414 million sq m of living space in 1955,
and by the end of 1960 there will be 27.0 million houses in rural
areas as compared with 24.4 million houses in 1955. Although this
tremendous expansion will help to relieve substandard housing con-
ditions, housing has been neglected for such a long time that at
least 10 or 12 years will be required 11/ to bring housing up to
Soviet standards of minimum health and decency -- namely, 9 sq .m
of living space per person.
* See Table 1, Appendix A, p. 14, below.
** Living space excludes hallways, kitchens, baths, and all other
similar secondary space.
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B. Outlays on Housing by Organization) 1955.
Outlays on housing in 1955, by organization, are shown in
the following tabulation:
Value
Organization (Billion Rubles)
Public
21.2
Individual
18.2
Total
39.4
Public gross expenditures on housing in 1955 amounted to 25.4 bil-
lion rubles, net expenditures being 21.2 billion rubles after deduct-
ing rent receipts of 4.2 billion rubles. In 1955, more than 15 mil-
lion sq m of new living space were completed by the state at a cost
of 21.7 billion rubles. It is estimated that public organizations
spent another 3.7 billion rubles to maintain public housing stock of
262 million sq m of living space. In 1955, expenditures by individuals
on housing are estimated to have been 18.2 billion rubles -- the sum of
4.7 billion rubles for private urban housing, 9.3 billion rubies for
private rural housing, and 4.2 billion rubles for rent of public
housing. Estimated expenditures by urban individuals of 4.7 billion
rubles on private housing are the sum of 3.8 billion rubles (for 5.9
million sq m of newly constructed living space) and 0.9 billion rubles
(for the maintenance of the private urban individual housing stock of
143 million sq m of living space in 1955). Estimated individual ex-
penditures on rural housing of 9.3 billion rubles are the sum of
6.6 billion rubles for 600)000 new houses and 2.7 billion rubles for
the maintenance of 24.4 million houses.
V. Other Consumer Services.
'Outlays on consumer services other than education, health, and
housing amounted to 49.7 billion rubles in 1955, or 23.5 billion
rubles more than in 1948, as shown in Table 1.* Outlays on other
consumer services are expected to reach 76.1 billion rubles by 1960,
or 53 percent above 1955. As a percent of total outlays on consumer
services, the outlays on other consumer services increased from
18 percent in 1948 to 24 percent in the period 1955-56, and for the
period 1957-60, even with the tremendous increase in housing, it is
expected that this relationship will be maintained at approximately
24 percent, as shown in Table 4,4E* On a per capita basis, outlays
on other consumer services in 1960 compared with 1955 are expected
to increase by 47 percent on household operations, by 63 percent on
personal transportation, by 18 percent on recreation and culture,
* Appendix A, p..14,.below.
** Appendix A, p. 17, below.
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by 35 percent on repair services, and by 10 percent on personal care;
as shown in Table 2.* The outlays on other consumer services are of
great importance to the individual as these other services are pri-
marily paid for out of personal income.
* Appendix A, p. 15, below.
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APPENDIX A
STATISTICAL TABLES
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Table 1
Estimated Outlays on Consumer Services in the USSR 2/
1948-60
Billion 1955 Rubles
Consumer Service
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958 1959 1960
Education
57.6
61.1
64.2
67.0
71.8
74.7
75.7
77.9
80.9
84.7
87.1
91.0
95.9
Health
30.4
32.4
34.3
35.6
37.1
38.9
40.1
43.1
45.2
47.4
50.8
53.2
56.2
Housing
29.1
30.0
29.0
31.6
31.5
34.8
37.0
39.4
43.5
52.9
62.1
75.7
90.3
Household operations
5.7
6.2
6.8
7.5
8.2
8.8
9.7
10.8
11.9
13.3
14.6
15.9
17.3
Personal transportation
7.1
8.0
8.9
10.1
11.3
12.4
14.3
16.5
17.8
20.2
23.1
26.2
29.3
Recreation and culture
8.2
8.5
9.1
9.8
10.5
11.4
12.5
14.3
15.0
15.9
16.7
17.6
18.3
Repair services
3.2
3.5
3.8
4.1
4.4
4.8
5.2
5.6
6.o
6.5
7.0
7.6
8.2
Personal care
2.0
2.0
2.1
2.2
2.3
2.4
2.5
2.5
2.6
2.7
2.8
2.9
3.0
Total
143.3
151.7
158.2
167.9
177.1
188.2
197.0
210.1
222.9
243.6
264.2
290.1
318.5
a. For methodology, see Appendix B.
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Table 2
Estimated Indexes of Per Capita Outlays on Consumer Services in the USSR
1948-60
1955
= 100
Consumer Service
1948
1949
4950-
1951
1952
1953
1954
1955
1956
1957
-1958
1959
1960
Education
82
87
90
92
97
99
99
loo
102
105
106
109
113
Health
79
83
87
88
91
93
95
loo
1103
106
112
115
120
Housing
82
84
80
86
84
92
96
loo
109
130
150
180
211
Household operations
.59
63
69
74
80
84
91
100
108
119
128
137
147
Personal transportation
48
53
59
65
72
78
88
100
106
118
133
148
163
Recreation and culture
64
66
69
73
77
82
90
100
103
107
111
115
118
Repair services
64
69
74
78
83
89
95
100
106
112
119
127
135
Personal care
89
88
91
94
96
99
102
100
102
104
106
108
110
Total
76,
,80
.82
85
89
93
.95-
100
104
-112.
120
129
139
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Table 3
Estimated Ratios of Outlays on Consumer Services to Gross National Product
in the USSR 27
Selected Years, 1948-60
Year
Gross National ProductConsumer
(Billion 1955 Rubles)
Services
-(Billion 1955 Rubles)
Ratio
(Percent)
1948
807
143.3
17.8
1950
924
158.2
17.1
1955
1,285 .
210.1
16.3
1956
1,399
222.9
15.9
1957
1,490
243.6
16.3
1960
1,800
318.5
17.7
a. For methodology, see Appendix B.
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Table 4
Estimated Percentage Composition of Outlays on Consumer Services in the USSR a/
1948-60
Percent
Consumer Service
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
Education
41
41
41
40
41
40
39
37
?36
35
33
31
" 30
Health
21
21
22
21
21
20
20
20
20
19
19
18
18
Housing
20
20
18
19
18
18
19
19
20
22 '
24
26
28
Household operations
4
4
4
5
5
5
5
5
' 5
5
5
6
5
Personal transportation
5
5
6
6
6
7
7
8
8
8
9
9
9
Recreation and culture
6
6
6
6
6
6
6
7
7
7
6
6
6
Repair services
2
2
2
2
2
3
3
3
3
3
3
3
3
Personal care
1
1
1
1
1
1
1
1
1
1
1
1
1
Total
100
100
100
100
100
100
100
100
100
100
100
100
100
a. For methodology, see Appendix B.
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Table 5
Estimated Public Outlays on Consumer Services in the USSR 2/
1948-60
Consumer Service
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
'
(Billion 1955 Rubles)
Education
54.5
57.8
60.7
63.4
68.0
70.7
71.6
73.7
76.5
80.1
82.4
86.1
90.7
Health
26.5
28.3
29.9
31.1
32.4.
33.9
35.0
37.6
39.4
41.4
44.3
46.4
49.0
Housing
12.3
13.1
15.0
17.2
17.0
19.7
20.6
21.2
24.3
29.8
35.8
43.6
51.5
Recreation and culture
2.2
2.3
2.5
2.7
2.9
3.2
3.6
4.2
4.4
4.7
5.0
5.3
5.5
Total
95.5
101.5
108.1
114.4
120.3
127.5 130.8
136.7
144.6
156.0
167.5
181.4
196.7
(Percent)
Percent public- outlays'
'
are of total
66.6
66.9
68.3
68.1
67.9
67.7
66.4
65.1
64.9
64.o
63.4
62.5
61.8
a. For methodology, see Appendix B.
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Table 6
Estimated Private Outlays on Consumer Services in the USSR 2/
1948-60
Consumer Service
19481949
1950
1951
1952
1953 1954
1955 1956
1957
1958
1959
1960
(Billion 1955 Rubles)
Education
3.1
3.3
3.5
3.6
3.8
4.o 4.1
4.2
4.4
4.6
4.7
4.9
5.2
Health
3.9
4.1
4.4
4.5
4.7
5.0 5.1
5.5
5_8
6.o
6.5
6.8
7.2
Housing
16.8
16.9
14.0
14.4
14.5
15.1 16.4
18.2
19.2
23.1
26.3
32.1
38.8
Household operations
5.7
6.2
6.8
7.5
8.2
8.8 9.7
10.8
11.9
13.3
14.6
15.9
17.3
Personal transportation
7.1
8.o
8.9
10.1
11.3
12.4 14.3
16.5
17.8
20.2
23.1
26.2
29.3
Recreation and culture
6.0
6.2
6.6
7.1
7.6
8.2 8.9
10.1
10.6
11.2
11.7
12.3
12.8
Repair services
3.2
3.5
3.8
4.1
4.4
4.8 5.2
5.6
6.o
6.5
7.0
7.6
8.2
Personal care
2.0
2.0
2.1
2.2
2.3
2.4 2.5
2.5
2.6
2.7
2.8
2.9
3.0
Total
47.8
50.2
50.1
53.5
56.8
60.7 66.2
73.4
78.3
67.6
96.7
108.7
121.8
(Percent)
Percent private outlays
-are of total
33.4
33.1.
31.7
31.9
.32.1
32.3 33.6 34.9
35.1
360
36.6
37.5
38.2
a. For methodology, see Appendix B.
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Table 7
Estimated Outlays on Education in the USSR, by Type of Cost 2/
1948-60
Year
Type of Cost
Total
(Billion 1955 Rubles)
Index of Total
(1955 = 100)
Wages
(Billion 1955 Rubles)
Materials
(Billion 1955 Rubles)
Construction
(Billion 1955 Rubles)
1948
30.6
24.9
2.1
57.6
74
1949
31.8
26.9
2.4
61.1
78
1950
33.2
28.3
2.7
64.2
82
1951
34.5
29.8
2.7
67.0
86
1952
36.7
32.1
3.0
71.8
92
1953
38.2
33.2
3.3
74.7
96
1954
39.8
32.6
3.3
75.7
97
1955
41.6
32.6
3.7
77.9
loo
1956
42.9
33.6
4.4
80.9
104
1957
45.2
34.5
5.0
84.7
109
1958
46.9
34.7
5.5
87.1
112
1959
49.2
35.6
6.2
91.0
117
1960
51.9
37.2
6.8
95.9
123
4. For methodology, see Appendix B.
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Table 8
Estimated Outlays on Health in the USSR, by Type of Cost
1948-60
Year
Type of Cost
Total
(Billion 1955 Rubles)
Index of Total
(1955 = loo)
Wages
(Billion 1955 Rubles)
Materials
(Billion 1955 Rubles)
Construction
(Billion 1955 Rubles)
1948
12.9
15.8
1.7
30.4
71
1949
13.9
16.7
1.8
32.4
75
1950
14.8
17.6
1.9
34.3
80
1951
15.6
18.5
1.5
35.6
83
1952
16.4
19.2
1.5
37.1
86
1953
17.3
19.9
1.7
38.9
90
1954
18.1
20.7
1.3
40.1
93
1955
18.9
21.6
2.6
43.1
loo
1956
19.7
22.8
2.7
45.2
105
1957
20.6
24.0
2.8
47.4
110
1958
21.4
25.3
4.1
50.8
118
1959
22.2
26.9
4.1
53.2
123
1960
23.1
29.0
4.1
56.2
130
a. For methodology, see Appendix B.
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Declassified and Approved For Release 2013/05/07: CIA-RDP79R01141A001200080002-7
APPENDIX B
METITOBOLOGY
A. General.
Estimates of outlays on consumer expenditure in the USSR,
7.948-60, in this report were based largely on 9 Soviet statistical
handbooks, 12/ the 2 most important being Cultural Construction in
the USSR and Health in the USSR. Information was most complete for
1955, and all estimates for other years have been presented in terms
of 1955 prices. Other important sources were Soviet plan announce-
ments and Soviet accounting handbooks. 12/ The official data were
subject to considerable interpolation and manipulation by the analyst.
Many assumptions and judgments were necessary to place the informa-
tion in the context of this report, especially in the case of private
expenditures on services. All totals were derived from unrounded
data and may not agree with the sum of the rounded estimates here
presented.
The accuracy of the estimates varies widely among the different
categories of services. Data on expenditures from the state budget
on education, health, and recreation and culture are judged to be
the most accurate information used, even though adjustments were
necessary in these data, as explained below. Outlays on education,
health, and recreation and culture by enterprises and individuals
are based on less reliable information, such as examples appearing
in Soviet accounting books of enterprise outlays for education.
Estimates on the physical volume of housing are derived from Soviet
sources and are thought accurate, but the ruble values per sq m of
living space are subject to considerable error and information on the
volume and cost of maintenance is scanty. In the case of household
operations, it was necessary to estimate consumer expenditures on a
series of utility and communications services, most of which are used
jointly by industry and private households. The sum of the result-
ing estimates is consistent with other, general information on the
place of household operations in total consumer expenditure. Out-
lays on private transportation are believed to be fairly accurate
despite the necessity of estimating average fares and average length
of trips. Outlays on tailoring and repair of clothing and household
appliances are given in official retail trade statistics. Estimates
of outlays on personal care are based on rule-of-thumb judgments and
are subject to great error, but these outlays are small compared with
other consumer services.
For each of the eight categories of services, the method for find-
ing the 1955 ruble value is described below, together with the general
principles by which values were estimated for the other years.
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B. Education.
1. Outlays in 1955 by Type of Organization.
Soviet outlays on education in 1955 are the sum of state
budget expenditures (66.8 billion rubles), expenditures of enter-
prises (6.9 billion rubles), and private expenditures (4.2 billion
rubles).
a. State.
State budget expenditures on education are the sum of
expenditures (1) directly from education appropriations and (2) from
social insurance appropriations. The state budget education expen-
diture of 68.9 billion rubles in 1955 was reduced by 3.8 billion
rubles to exclude political education, art and radiobroadcasting,
and publishing. Social insurance expenditures made for educational
purposes were estimated as 1.7 billion rubles by multiplying 1955
social insurance expenditures of 25.3 billion rubles 111 by 6.9
percent, which was the percentage shown for education in the 1950
social insurance expenditure plan. 1.5/
b. Enterprise.
This category is the sum of expenditures made for educa-
tion by enterprises of industrial ministries, by industrial coopera-
tives, by trade unions, and by collective farms.
(1) Enterprises Of Industrial Ministries.
Expenditures of enterprises for education were esti-
mated to be 4.7 billion rubles based on the difference of 6.8 billion
rubles between total state social-cultural expenditures of 154.0 bil-
lion rubles 1.?,/ and total state social-cultural budget expenditures of
147.2 billion /nines. Although the 154.0 billion rubles and the
147.2 billion rubles are not strictly comparable, the difference indi-
cates the magnitude of expenditures by industrial ministries for
social-cultural purposes. It is assumed that enterprise social-cultural
expenditures are for education and health only and that education is
the same portion of health and education expenditures in enterprises
as in the state budget. The 4.7 is to 6,8 as 68.9 is to 100.1, 18/
100.1 billion rubles being the sum of state budget expenditures for
education and health and 68.9 billion rubles being the education
apprOpriation.
(2) Industrial Cooperatives.
Expenditures of industrial cooperatives for educa-
tion were estimated as 0.8 billion rubles based on a partial break-
down of total industrial cooperatives' social-welfare expenditures
of 1.1 billion rubles. 12/
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(3) Trade Unions.
Trade union expenditures for education were estimated 1
at the planned figure of 1.0 billion rubles. 22/
(4) Collective Farms.
Expenditures of collective farms for education were
estimated to be 0.4 billion rubles, the sum of 0.3 billion rubles
for new school construction and 0.1 billion rubles for preschool
activities. New school construction was estimated as"0.3 billion
rubles by multiplying the number of new spaces provided for 160,000
pupils 21/ by 2,000 rubles, this price being half that shown for
state construction on page 27, below.
c. Individuals.
Expenditures of individuals for education are the sum Of .
parents', guardians', and students' payments for (1) part of the costs
of kindergartens and the training of preschool'retarded children, '
(2) part of the costs of training of school-age retarded children,
(3) part of the costs of childrens' vacation playgrounds, and
(4) fees.
(1) Kindergartens and Preschool Retarded Children.
(a) Kindergartens
Parents' fees for kindergartens were estimated
to be 1.2 billion rubles by taking 20 perdent ?the 'sum of all
kindergarten expenditures of 5.9 billion rubles. The 20-percent
fee which parents pay was taken from an example of kindergarten
costs. 22/
(3) Preschool Retarded Children.
Individuals were estimated to have paid fees of
0.4 billion rubles for the training of preschool retarded children
by multiplying the number of children by the median fee charged.
Fees for training retarded children were estimated as 225 rubles
per month per child, the midpoint in the range of charges of 50 to?
"hoo rubles set for institutions in the RSFSR in 1955. 23/ The num-
ber of preschool retarded children was estimated to be 136,587 by
taking half the average annual number (400,215 211/) of all retarded
and orphan children less half the average .annual number (127,041 22/)
of school-age retarded and orphan children.
(2) School-Age Retarded Children.
The fees for the training of retarded school-age
children were estimated to be 0.2 billion rubles by multiplying the
225 rubles per month per child and half of the average annual number
of school-age retarded and orphan children of 127,041 as explained
in the preceding paragraph.
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(3) Childrens' Vacation Playgrounds.
Parents' payments for childrens' vacation playgrounds
were arbitrarily estimated to be 0.1 billion rubles by taking 10 per-
cent of estimated food costs of the playgrounds of over 0.9 billion.
(4) Fees.
Fees in 1941 accounted for 3 percent of all educa-
tional expenditures. EY In lieu of later data, this figure has
been adopted, giving 2.3 billion rubles for 1955.
2. Outlays in 1955 by Type of Function.
Soviet educational expenditures by function in 1955 are the
sum of expenditures on general education (37.3 billion rubles),
higher education (29.0 billion rubles), and science (11.6 billion
rubles). The detailed expenditures by the state, enterprises, and
private individuals were taken and regrouped by type of function.
Two important items of information were that state budget expendi-
ture on public schools for grades 1 through 10 was 24.2 billion
rubles 27/ and that state budget expenditure on higher education
was 23.3 billion rubles. g/ A third important bit of information
was that the planned 195 expenditure on science education of 13.6
billion rubles was 2.0 billion rubles greater than the actual ex-
penditure in 1955. g2/
3. Outlays in 1955 by Type of Cost.
Soviet educational expenditures by type of cost in 1955 are
the sum of wages (41.6 billion rubles), materials (32.6 billion
rubles), and construction (3.7 billion rubles). Information on the
numbers in various categories of adminietrators, teachers, and
janitors 32/ was combined with information on the wage structure 31/
to get expenditures on wages. Many detailed assumptions were neces-
sary in piecing together the information -- for instance, assumptions
as to the proportion of teachers who got extra pay for overtime,
advanced degrees, and time-in-grade. The resulting summary tabula-
tion is as follows:
Tyre
of Education
Personnel
(Thousands)
Wages
Social Insurance*
Average Annual Wage**
(Rubles)
(Billion Rubles)
General
3,470
22.1
1.0
6,400
Higher
320
6.5
0.3
20,300
Science
119
2.7
0.1
22,700
Stipends
N.A.
6.8
Lecture
courses
N.A.
2.1
Total
4o.2
1.4
3,909XXX
Paid by government.
Excluding social insurance.
Not including those receiving
stipends or lecture fees.
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The most important item in construction is the estimate of
state construction for general education as 1.8 billion rubles, ob-
tained by multiplying 442,500 new spaces provided for pupils 32/ by
4,000 rubles, the cost per new pupil space in the RSFSR during the
Fifth Five Year Plan. 31/ Other items include state construction
for science, higher education, and collective farms. Expenditures
on materials was taken as the difference between total expenditures
and expenditures on wages and construction.
it. Estimates for Years Other Than 1955.
Soviet outlays on education for years other than 1955 were
estimated by taking the number of teachers and other personnel em-
ployed in education in each year valued at 1955 wages, the number
of students valued at 1955 cost of materials per student, and the
number of new classrooms valued at 1955 construction costs from
data given in Cultural Construction. 314/ The breakdown between
public and private expenditures was derived by using the same re-
lationship between the two as was estimated for 1955.
C. Health.
1. Outlays in 1955 by Type of Organization.
Soviet outlays on health in 1955 are the sum of state budget
expenditures (33.0 billion rubles), expenditures of enterprises
(4.6 billion rubles), and private expenditures (5.5 billion rubles).
a. State.
State budget expenditures on health are the slim of ex-
penditures (1) directly from health accounts and (2) from social in-
surance accounts. The state budget health expenditures of 31.2 bil-
lion rubles 35/ in 1955 were reduced by 0.3 billion rubles to exclude
sports and physical culture. Social insurance expenditures made for
health purposes, planned at 2.2 billion rubles, 3g were reduced by
0.1 billion rubles to exclude sports and physical culture.
b. Enterprise.
This category is the sum of expenditures made for health
by industrial ministries, by industrial cooperatives, and by collec-
tive farms.
(1) Enterprises of Industrial Ministries.
Expenditures of enterprises for health were esti-
mated to be 3:0 billion rubles, the difference between total public
health expenditures of 36.4 billion rubles (less 0.4 billion rubles
for sports and physical culture) and state organizational expendi-
tures for health of 33,0 billion rubles. Total public expenditures
of 36.4 billion rubles were obtained by increasing the 1955 state
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budget health expenditures of 31.2 billion rubles by the relationship
shown in 1954 of total public health expenditures of 33.7 billion
rubles 3// to the state budget health expenditures of 28.9 billion
rubles. 1.?./
? (2) Industrial Cooperatives.
Expenditures of industrial cooperatives for health were
estimated to be 0.3 billion rubles, based on a partial breakdown of total
industrial cooperatives' social-welfare expenditures of 1.1 billion. 32/
(3) Collective Farms.
Expenditures of collective farms for health were esti-
mated to be 1.3 billion rubles, the sum of 1.0 billion rubles for
health services and 0.3 billion rubles for new construction. Money in-
come of collective farms was 75.6 billion rubles in 1955 and 94.5 bil-
lion rubles in 1956 110/; expenditures of collective farms on health
services are estimated to be 1.2 billion rubles in 1956, out of total
cultural expenditures of 1.4 billion rubles 41/; proportional expendi-
tures on health services in 1955 would have been 1.0 billion rubles.
Collective farms' new hospital construction was estimated to be 0.3 bil-
lion by multiplying an estimated 15,000 new rural hospital beds by
19,000 rubles, this price being the same as that shown for state con-
struction of hospital beds on page 29, below.
c. Individuals.
Expenditures of individuals for health are the sum of medi-
cine and drug sales (3.8 billion rubles) and fees (1.7 billion rubles)
paid for passes to health resorts, sanatoriums, rest homes, and nurseries.
(1) Medicine and Drug Sales.
Sales of medicines and drugs were given as 3.8 billion
rubles. LtE/ .
(2) Fees.
Fees paid for passes to health resorts, sanatoriums,
and rest homes were estimated to be 1.1 billion rubles from the infor-
mation that the nonprivate share of total estimated expenses of 3.6 bil-
lion rubles was 70 percent, leaving 30 percent as the private share. IS
Nursery fees were estimated as 0.6 billion rubles by multiplying the
average number of children in nurseries (884,000 44/) by the 1955 planned
fee of 640 rubles per year. 112/
2. Outlays in 1955 by Type of Function.
Soviet health expenditures by function in 1955 are the sum
of expenditures on hospital and other health institutions (26.8 bil-
lion rubles);. maternity and child care (5.2 billion rubles); sanita-
tion (1.7 billion rubles); training (3.1 billion rubles); care of
the disabled, medical administration, and other (2.5 billion rubles);
and medicines and drugs (3.8 billion rubles). This breakdown was
obtained by multiplying the 36.0 billion rubles of total public
health expenditures (excluding sports and physical culture) by
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67.0 percent for hospitals and other health institutions; by 12.8
percent for maternity and child care; by 4.7 percent for sanitation;
by 8.7 percent for training; and by 6.8 percent for disabled, medical-
administration, and other, according to the 1957 Plan for the
RSFSR. Other enterprise expenditures for health of 1.6 billion
rubles 1.3 billion rubles by collective farms and 0.3 billion
rubles by industrial cooperatives) were added to "hospitals and
other health institutions," as was 1.1 billion rubles paid by in-
dividuals. The 0.6 billion rubles for nursery fees paid by in-
dividuals were added to "maternity and child care." The figure for
medicines and drugs was derived as shown on p. 28, above.
3. Outlays in 1955 by Type of Cost.
Soviet health expenditures by type of cost in 1955 are the
sum of wages (18.9 billion rubles), materials (21.6 billion rubles),
and construction (2.6 billion rubles).
a. Wages.
Expenditures for health wages and salaries were estimated
to be 18.9 billion rubles, the sum of wage payments (17.8 billion
rubles) and social insurance (1.1 billion rubles). Wages of 17.8
billion rubles were obtained by multiplying the 1955 state health
budget of 31.2 billion rubles)21/ by 57.1 percent, the percent shown
for wages in the 1957 RSFSR health budget. 48/ These wages were in-
creased by 5.9 percent,122/ the amount paid to the state budget for
social insurance by the health system.
b. Materials.
This category was estimated to be 21.6 billion rubles,
the difference between the sum of wages (18.9 billion rubles) and
construction (2.6 billion rubles) and total health expenditures
(43.1 billion rubles).
c. 'Construction.
Health expenditures for construction were estimated to
be 2.6 billion ruble, the sum of 2.3 billion rubles for state and
0.3 billion rubles for collective farms. State health capital in-
vestment for 1955 was obtained by multiplying 121,700 hospital beds
and places in nurseries by 19,000 rubles. The 19,000 rubles was the
result of dividing total Fifth Five Year Plan health capital in-
vestment of 7.8 billion rubles 52/ by 408,300 hospital beds and
places in nurseries, 51/ the total number of beds and places added
during the Plan. The 0.3 billion rubles for collective farms was
explained on page 25, above.
4. Estimates for Years Other Than 1955.
Soviet outlays on health for years other than 1955 were esti-
mated by taking the number of persons employed in health in each year
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valued at 1955 wages, the materials valued at 1955 costs per hospital
bed, and the increments of the number of hospital beds and nursery
accommodations valued at 1955 construction costs.from data given in
the Health Handbook and the Sixth Five Year Plan for Health. 52/ The
breakdown between public and private expenditures was derived by
using the same relationship between the two as. was estimated for 1955.
D. Housing.
Soviet outlays on housing in 1955 by organization (39.4 billion
rubles) are the sum of outlays for construction and maintenance
made by the state and by individuals. Net state expenditures on
housing (21.2 billion rubles) are the difference between total out-
lays and consumer outlays on housing.
1. Total Outlays.
Total outlays on housing are the sum of expenditures for
construction and for maintenance by the state, by urban individuals,
and by rural individuals.
a. State.
State gross expenditures on housing were estimated to be
25.4 billion rubles, the sum of 21.7 billion rubles for completed
construction and 3.7 billion rubles for maintenance. State construc-
tion expenditures on housing were obtained by multiplying 1,400 rubles
(cost per sq m) 2_1/ by 15.5 million sq m of newly constructed living
space, the 15.5 million sq m being 62 percent (the percent of living
space to total state housing space)5)1/ of 25.0 million sq m of
total new housing space. 52/ State maintenance expenditures on
housing were obtained by taking 1 percent or replacement costs of
state housing stock of 262 million sq m of state living space 561 at
1,400 rubles per sq m.
b. Urban Individual.
Urban individual expenditures on housing were estimated
to be 4.7 billion rubles, the sum of 3.8 billion rubles for com-
pleted construction and 0.9 billion rubles for maintenance. Urban
individual construction expenditures on housing were obtained by
multiplying 650 rubles (cost per sq m) 52/ by 5.9 million sq m of
newly constructed living space, the 5.9 million being 70 percent
(the percent of living space to total space in private urban hous-
ing) 2'E/ of 8.4 million sq m of total new urban private housing
space. 52/ Urban individual maintenance expenditures on housing
were obtained by taking 1 percent of replacement cost average of
urban individual housing stock of 143 million sq m of living space _62/
at 650 rubles per sq m.
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c. Rural Individual.
Rural individual expenditures on housing were ,estimated
to be 9.3 billion rubles, the sum of 6.6 billion rubles for completed
construction and 2.7 billion rubles for maintenance. Rural individual
construction expenditures on housing were obtained by multiplying
600,000 new houses LI by 11,000 rubles (cost per house). .2./ Rural
individual maintenance expenditures on housing were obtained by taking
1 percent of replacement costs of average rural individual housing
stock of 24.4 million houses .3./ at 11,000 rubles per house,
2. Consumer Outlays.
Consumer expenditures on housing are the sum of rent and ex-
penditures for individual construction and maintenance.
, a. Rent.
Rent was estimated to be 14.2 billion rubles by multi-
plying the state housing stock of 262 million sq m of living space
by the legal rent of 15.84 rubles per year per sq m of living
space. ?11/
b. Individual Construction and Maintenance.
This category was estimated to be 14.0 billion rubles,
the sum of 4.7 billion rubles for urban individual outlays and
9.3 billion rubles for rural individual outlays explained in 1, b,
and 1, c, above.
3. Estimates-for Years Other Than 1955.
Soviet outlays on housing for years other than 1955 were .
estimated by taking the physical volume Of housing construction and
maintenance valued at 1955 costs. Data on physical volume of both
public and private housing space were derived from data given in the
National Economy Handbook and the July 1957 housing decree. .6.5/
E. Household Operations.
Soviet consumer expenditures on household operations in 1955
(10.8 billion rubles) are the sum of expenditures for utilities
(5.1 billion rubles) and communications services (5.6 billion
rubles). (The seeming discrepancy in the total is due to the round-
ing of the components.)
1. Electricity.
Consumer expenditures for electricity were estimated to be
2.9 billion rubles by multiplying 7.3 billion kilowatt-hours by
40 kopecks. ?g
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2. Water.
Consumer expenditures for water were estimated to be 1.5 bil-
lion rubles by multiplying 3.8 billion cubic meters by 4o kopecks L/
based on preWar water consumption data 2/ and water consumption in
the RSFSR.
3. Gas.
Consumer expenditures for gas were estimated to be 0.7 bil-
lion rubles by multiplying one-third of the natural gas production
of 9.0 billion cubic meters and one-half of the shale gas production
of 1.4 billion cubic meters by 20 kopecks, 22/ the quantities being
based on Sixth Five Year Plan data. 71/
4. Communications.
Consumer expenditures on communications were estimated to be
5.6 billion rubles by multiplying the total revenues of the Ministry
of Communications of 9.7 billion rubles 22/ by 57.5 percent. Con-
sumer expenditures as a percent of the revenues of the Ministry of
Communications were believed to account for more than 55 percent but
under 60 percent.
5. Estimates for Years Other Than 1955.
Consumer expenditures for household operations for years
other than 1955 were estimated from output data valued at 1955
prices. Data on the production of electricity and gas were given
in the Industrial Handbook 23./ and the Sixth Five Year Plan 74 ;
data on water consumption were given in the RSFSR Handbook fl/;
and data on communications services were given in the National
Economy Handbook and the Transportation and Communications Hand-
hatok. 76/
F. Personal Transportation.
Soviet consumer expenditures on personal transportation in 1955
were estimated to be 16.5 billion rubles: 9.0 billion rubles for
local and long-distance railroads; 6.9 billion rubles for street-
cars, buses, taxis, and private automobiles; 0.4 billion rubles for
river transportation; 0.1 billion rubles for ocean transportation;
and 0:1 billion rubles for air transportation from data given in the
National Economy Handbook and the Transportation and Communications
Handbook. 21/ Physical data for years other than 1955 came from the
same sources.
G. Recreation and Culture.
Soviet outlays on recreation and culture in 1955 are the sum of
expenditures for admissions paid to the places of entertainment
(8.5 billion rubles), state budget expenditures for welfare services
and sports (4.2 billion rubles), and private expenditures for religion
(1.6 billion rubles).
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1. Admissions.
Consumer expenditures for admissions to places of entertain-
ment were estimated in a UN report to be 8.5 billion rubles -- the
sum of 5.7 billion rubles for urban cinemas, 1.7 billion rubles for
rural cinemas, 0.8 billion rubles for theaters, 0.2 billion rubles
for circuses, and 0.1 billion rubles for museums and other. Ity
2. State Budget.
State budget expenditures for culture were estimated to be
4.2.billion rubles, the sum of 3.8 billion rubles from the education
budget for libraries, clubs, and other cultural activities as ex- .
plained in the methodology in B, 1, a, above, and 0.4 billion rubles
from the state health budget for sports and physical culture as ex-
plained in C, 1, a, above.
3. Religion.
Consumer expenditures on religion were estimated to be 1.6
billion rubles by multiplying 6.7 million (the number of active
church members) by their annual contribution of 240 rubles. The
estimate of 6.7 million active church members was derived by taking
one-fourth of the reported 80 million affiliated with religion in
the USSR (50 million members of the Russian Orthodox Church 29/ and
30 million Moslems ?2/) on the basis of 4 persons per family and
estimating that one-third contained an active church supporter.
4. Estimates for Years Other Than 1955.
Consumer expenditures on recreation and culture- for years
other than 1955 were estimated from attendance data at recreation
facilities and budget data in terms of 1955 prices. Data on attend-
ance at cinemas, theaters, circuses, museums, and other recreation
facilities were given in Cultural Construction Li and the Sixth
Five Year Plan for cinemas. Culture and welfare estimates were based
on state budget data given in Cultural Construction. c12/ Consumer
expenditures on religion were held at the level of 1955 outlays'for
all years, on the basis that support of existing facilities is being
maintained but not increased.
H. Repair Services.
Soviet consumer expenditures on repair services were estimated
to be 5.6 billion rubles, being interpolated from data showing 3.8
billion rubles in 1950 and 6.0 billion rubles in 1956, L91.31 giving
an average annual rate of growth of 8 percent. This constant rate
was then used to extend consumer expenditures on repair services
to years other than 1955.
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I. Personal Care.
Soviet consumer expenditures on personal care are taken as the
sum of expenditures for hairdressing (1.5 billion rubles), public
baths (0.8 billion rubles), and laundries (0.2 billion rubles).
1. Hairdressing.
Consumer expenditures for hairdressing were estimated to be
1.5 billion rubles by multiplying 500 million visits by 3.0 rubles,
the average amount charged for a haircut in Moscow.811,L41 The 500
million visits was estimated on the basis of employment in all ser-
vices of industrial cooperatives of less than 300,000. 85/ It was
assumed that there were no more than 100,000 hairdressers in the
USSR in 1955 who worked 250 days a year providing service for 20
people per day.
2. Public Baths.
Consumer expenditures for public baths were estimated to be
0.8 billion rubles by multiplying 544.3 million public admissions
by 1.50 rubles. Lii_Y The number of public bath admissions was esti-
mated by interpolating the admissions given as of 1 January 1938
and as of 1 January 1941 to obtain 1939 public bath admissions and
by increasing the number of 1939 admissions to baths by 149 percent
(1939 = 100), the increase given for the number of public baths in
the RSFSR as of 1 January 1956. 87/
3. Laundering.
Consumer expenditures for laundering were estimated to be
0.2 billion rubles by multiplying 113.9 million kilograms of laundry
by 2.0 rubles (cost per kilogram). pi_W The 113.9 million kilograms
of laundry were estimated by interpolating the kilograms of laundry
as of 1 January 1938 and as of 1 January 1941 to obtain 1939 kilo-
grams of laundry and by increasing by 217 percent (1939 = 100), the
increase-given for laundry output in the RSFSR as of 1 January
1956. ?,s/
4. Estimates for Years Other Than 1955.
Consumer expenditures for personal care for years other than
1955 were estimated from data on population, bath admissions, and
kilograms of laundry valued at 1955 prices. Hairdressing was eati-
mated by the trend of the urban population. Admissions to public
baths and kilograms of laundry were estimated from data given in the
RSFSR Handbook. EV
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J. Gross National Product. .
GNP estimates for 1950, 1955, and 1956 are government estimates
which have already appeared, in somewhat different form, in public
print. 91/ Estimates for 1957 and 1960 are based on an assumed rate
of growth. of 6.5 percent and for 1948 on an assumed rate of growth of
7 Percent.
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7
APPENDIX C
SOURCE REFERENCES
The principal primary sources of information about consumer ser-
vices in the USSR are official government statistical handbooks, fi-
nance books, and published plans.
1. USSR, TsSU. Kultturnoye stroitel'stvo SSSR (Cultural Con-
struction in the USSR), Moscow, 1956) p. 3. (hereafter
referred to as USSR, TsSU. Kul'turnoye stroitel'stvo)
2. Ibid., p. 75, 190, 245.
3. Ibid., p. 75, 190.
4. Ibid., p. 3.
5. Bychkov, I. Ya., and Yermolayev, I.S. Oplata truda
meditsinskikh rabotnikov (Payments of Labor of Medical
Workers), Moscow) 1954, p. 56.
6. USSR, Ministerstvo Zdravookhraneniya SSSR, Otdel Meditsinskoy
Statistiki. Zdravookhraneniya v SSSR (Health Care in the
USSR), Moscow, 1957, p. 37, 40, 103, 118, 123. (hereafter
referred to as USSR, Minzdrav. Zdravookhraneniya)
7. USSR) TsSU. Sovetskaya torgpvlya (Soviet Trade)) Moscow)
1956, p. 34. (hereafter referred to as USSR, TsSU.
Sovetskaya torgovlya)
8. Lavrov, V.V. "Finansy i podflyem narodnogo b1agosostoyaniya"
(Finances and Lifting of the National Economy), Finansy i sotsi-
alisticheskoye stroitel'stvo, Moscow, 1957, p. 214.
9. Kommunist ho 12) Aug 57, p. 118.
Pravda 20 Jul 57, p. 2.
10. USSR, Tsentral'nyy Komitet KPSS. 0 razvitii zhilishchnogo
stroitel'stva v. SSSR (Concerning the Development of Housing
Construction in the USSR), Moscow, 31 Jul 57, p. 9-10. (here-
after referred to as USSR, Komitet. 0 razvitii)
11. Pravda, 17 Apr 58, p. 3.
12. USSR, TsSU. Kul'turnoye stroitel'atvo (1, above).
USSR, Minzdrav. Zdravookhraneniya (6, above).
USSR, TsSU. Sovetskaya torgovlya (7, above).
RSFSR, Statisticheskoye Upravleniye RSFSR. Narodnoye khozyaystvo
RSFSR (The National Economy of the RSFSR), Moscow, 1957. (here-
after referred to as RSFSR? SU RSFSR. -Narodnoye RSFSR)
USSR, TsSU. Promyshlennost' SSSR (Industry in the USSR), Moscow,
1957. (hereafter referred to as USSR, TsSU. Promyshlennost')
USSR, TsSU. Narodnoye khozyaystvo SSSR (The National Economy
of the USSR), Moscow, 1956. (hereafter referred to as USSR,
TsSU. Narodnoye)
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USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 (The National
Economy of the USSR in 1956), Moscow, 1957. (hereafter re-
ferred to as USSR, TsSU. Narodnoye 1956)
USSR, TsSU. Transport I svyaz' SSSR (Transport and Communica-
tions in the USSR), Moscow, 1957. (hereafter referred to as
USSR, TsSU. Transport)
USSR, TsSU. Dostizheniya sovetskoy vlasti za sorok let v
tsifrakh (Achievements of the Soviet Government During Forty
Years in Figures), Moscow, 1957.
13. Potekhin, L., and Rozenfel'd, I. Planirovaniye raskhodov na
soderzhaniye uchrezhdeniy prosveshcheniya i zdravookhraneniya
(The Planning of Expenditures for the Maintenance of Educational
and Health Institutions), Moscow, 1955.
Bogdanov, I.M. Statistika kul'tury (Statistics of Culture),
Moscow, 1950.
Varlamov, N.G., edr. Finansirovaniye prosveshcheniya i
zdravookhraneniya (Financing Education and Health), Moscow,
1949.
14. USSR; TsSU. Narodnoye 1956 (12) above), p. 280.
15. Krasnopol'skiy, A.S. "0 prirode sovetskogo gosudarstvennogo
sotsial'nogo strakhovaniya" (On the Nature of State Social
Insurance), Sovetskoye gosudarstvo i pravo) no 6, 1951, p. 65.
16. Kisman, N., and Slavnyy, I. Sovetskiye finansy v pyatoy
pyatiletke (Soviet Finances in the Fifth Five Year Plan),
Moscow, 1956, p. 82.
17. USSR, TsSU. Narodnoye 1956 (12, above), p. 280.
18. Ibid.
19. Nepokrytyy, I. "Na otdykhe i lechenii" (On Rest and Health),
Promyslovaya kooperatsiya, no 1, 1956, p. 33.
20. Pravda, 19 Jun 55, p. 1.
21. USSR, TsSU. Kul'turnoye stroitel'stvo (1, above), p. 72.
22. Pomanskiy, N.A. Finansirovaniye detskikh sadov (Financing
Kindergartens), Moscow, 1951, p. 42-43.
23. Potekhin and Rozenfel'd, is. cit. (13, above), p. 66.
24. USSR, TsSU. Kul'turnoye stroitel'stvo (1, above), p: 201.
25. Ibid., p. 81.
26. King, Beatrice. Soviet Russia Goes to School, Delhi, India)
1956, p. 21.
27. USSR, TsSU. Kul'turnoye stroitel'stvo (1, above), p. 73.
28. Ibid.
29. USSR, Verkhovnyy Sovet SSSR. Zasedaniya verkhovnogo soveta
SSSR, chetvertogo sozyva, chetvertaya sessiya (Proceedings of
the Supreme Soviet of the USSR, 4th Meeting, 4th Session),
Moscow, 1956, p. 15.
30. USSR, TsSU. Kul'turnoye stroitel'stvo (1, above), p. 178.
Pomanskiy, N.A. Finansirovaniye prosveshcheniya i
zdravookhraneniya (Financing Education and Health), Moscow,
1949, chap 1-6.
31. Potekhin and Rozenfel'd, 22.. cit. (13, above), p. 33.
32. USSR, TsSU. Kul'turnoye stroitel'stvo (1, above), p. 72.
33. Izvestiya, 21 Dec 57, p. 10.
34. USSR, TsSU. Kul'turnoye stroitel'stvo (1, above), p. 72.
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35. USSR, TsSU. Narodnoye 1956 (12) above)) p. 280.
36. USSR, Verkhovnyy Sovet SSSR. Zasedaniya verkhovnogo soveta
SSSR, chetvertogo sozyva, vtoraya sessiya (Proceedings of the
Supreme Soviet of the USSR, 4th Meeting, 26. Session), Moscow,
1955; p. 512.
37. Sel'skoye khozyaystvo, 21 Apr 56, p. 2.
38. Plotnikov, K. "Byudzhet SSSR v gody pyatoy pyatiletki"
(The Budget of the USSR in the Fifth Five Year Plan),
Finansy SSSR, no 2) Feb 56, p. 27-28.
39. Nepokrytyy, 22.. cit. (19, above).
4o. USSR, TsSU. Narodnoye 1956 (12) above)) p. 140.
41. Ekonomika sel'skogo khozyaystval no 70 Aug 57, p. 37.
42. USSR, TsSU. Sovetskaya torgovlYa (7, above).
,43. USSR, Foreign Languages Publishing House. Social Insurance
44. ugeT he useaTian-j
Moscow, 1952, Narod.noye (12, L031751,8.
p. 248.
45. Potekhin and Rozenfel'd)cm. cit. (13, above), p. 192.
46. Lavrov, 2R. cit. (8, above), p. 214.
47. USSR) TsSU. Narodnoye 1956 (12, above), p. 280.
48. lavrov, 2E. cit. (8, above), p. 214.
49. Potekhin and Rozenfel'd, 2R. cit. (13,,above), p. 180.
50. Meditsinskiy rabotnik., 16 Jul 57, p. 2.
51. USSR, Minzdrav. Zdravookhraneniya (6, above), p. 16-17.
52. Ibid.
Kurashov) S.B. Sovetskoye zdravookhraneniye v shestoy
pyatiletke (Soviet Health in the Sixth Five Year Plan),
Moscow, 1957.
53. Stroitelinaya,gazete, 20 Oct 57, p. 1.
54. Shavrov, A. "Voprosy gorodskogo zhilishchnogo stroitel'stva"
55. USSR, TsSU. Narodnoye (12, above), p. 161-162.
11:::52,1:::boano::::::: Construction)) Kommunist, no 4,
above), p. 162.
56. 61.
58.
57Narodnoye (12, albo:e) 14) 6P. 161-162.
57. p.
59.
6o.
Ibid., p. 1
Part iynaya
Shavrov.) 22.
USSR, TsSU.
USSR, TsSU.
Narodnoye 1956 (12, above), p. 176.
Ibid.
USSR, TsSU. Narodnoye (12) above), p. 161-162.
61. USSR, TsSU. Narodnoye 1956 (12, above), p. 176.
62. Yunik, I.B. Kreditovaniye i finansirovaniye zhilishchnogo
i kommunarnogo khozyaystva SSSR (Crediting and Financing
the Housing and Communal Economy, USSR), Moscow, 1955, p. 230.
63. USSR, TsSU. Narodnoye (12, above), p. 163.
USSR, TsSU. Narodnoye 1956 (12, above)) p. 176.
64. Broner, D.L. Organizatsiya i ekonomika zhilishchnogo
khozyaystva (Organization and Economics of the Housing
Economy), Moscow, 1955, p. 278-279.
65. USSR, TsSU. Narodnoye (12, above), p. 161-163.
USSR, Komitet. 0 razvitii (10) above).
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66. USSR, TsSU. Promyshlennost' (12, above), p. 20.
Sazonov, M.K. Finansovoye.plarOrovaniye v zhilishchnom i
kommunal'nom khozyaystve (Financial Planning in the Housing
and the Communal Economy), Moscow, 1957) p. 34,
67. Veselovskiy) B.B. Kurs ekonomiki i planirovaniya kommunal'nogo
khozysystva (A Course of Economics and Planning of the Com-
muna). Economy), Moscow, 1945, p. 349.
68. Ibid., p. 473.
69. RSFSR, SU RSFSR. Narodnoye RSFSR (12, above), p. 363.
70. Sazonov, 2E. cit..(66) above), p. 34.
71. USSR, TsSU. Promyshiennost' (12, above), p. 156.
ECE. E/EcE/298, E/EcE/oAs/11, Methods of Forecasting,
Gas Demand, Geneva, Nov 57, Annex V, p. 1. (hereafter re-
ferred to as UN, ECE. Methods)
72. USSR) TsSU. Transport (12, above), p. 216.
73. USSR, TsSU. Promyshlennost' (12, above)) p. 20, 156.
74. Elektricheskiye stantsii, no 11, 1957, p. 4.
UN, ECE. Methods (71, above).
75. RSFSR, SU RSFSR. Narodnoye RSFSR (12, above).
76. USSR, TsSU. Narodnoye (12, above), p. 184.
USSR) TsSU. Transport (12, above), p. 214, 216) 233, 242.
77. USSR, TsSU. Narodnoye (12, above).
USSR, TsSU. Transport (12, above).
78. UN, ECE. "An Estimate of the National Accounts of the Soviet
Union for 1955," Economic Bulletin for Europe, Geneva, May
57, v01 9, no 1, p. 98.
79. State, OIR. , IR rpt no 186, Soviet Affairs Notes) 28 Mar 56,
p. 4.
80. Ibid., no 144, 20 Apr 53, p. 2.
81. USSR, TsSU. Kul'turnoye stroitel'stvo (1, above), p. 311.
82. Ibid., p. 73.
83. Nepokrytyy, 2E. cit. (19, above).
84. State, Moscow. Dsp 467, 25 May 55, encl.
85. BLS. "Producers' Cooperatives in the Soviet Union," by
Frederick A. Leedy, Monthly Labor Review, Sep 57, p. 3.
86. Sazonov, 2E. cit. (66, above), p. 473.
87. Veselovskiy, a. cit. (67, above), p.1473.
RSFSR, SU RSFSR. .Narodnoye RSFSR (12,-above), p. 364.
88. Sazonov, 2E. cit. (66, above).
89. Veselovskiy, 2p.. cit. (67, above).
RSFSR, SU RSFSR. Narodnoye RSFSR (12, above), p. 473.
90. RSFSR) SU RSFSR. Narodn2ye RSFSR (12, above), p. 364.
91. New York Times, 29 Apr 58, p. 8.
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Declassified and Approved For Release 2013/05/07: CIA-RDP79R01141A001200080002-7