THE SOVIET BUDGET FOR 1961

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R01141A002000140002-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 35
• Document Creation Date: December 23, 2016
• Document Release Date: July 29, 2013
• Sequence Number: 2
• Publication Date: June 1, 1961
• Content Type: REPORT

M44 .
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N? 129
THE SOVIET BUDGET FOR 1961
June 1961
NOT TO BE REPRODUCED IN WHOLE OR
IN PART WITHOUT THE PERMISSION OF
THE CENTRAL INTELLIGENCE AGENCY
CENTRAL INTELLIGENCE AGENCY
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NOTICE
This report has bcan loaned to the recipient by
the Central L-15.-_41igence Aze-icy. When it has
served its .p-drpose it should he destroyed or
returned to the:
CIA Librarian
Central Intelligence Agency
Washington 25, D. C.
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,NO
THE SOVIET BUDGET FOR 1961
CIA/RR ER 61-28
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
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CONTENTS
Summary and Conclusions
I. Introduction
A. Availability of Data ...... . . .
B. Accounting Change in the New Budget
II. Expenditures
Page
1
3
3
3
3
A. Financing the National Economy
4
1. Capital Investment
4
2. Working Capital
6
3. Agriculture
9
B. Social-Cultural Measures
9
C. Defense
10
D. Administration and Miscellaneous
12
1. Administration
12
2. Reserve Funds of the Council of Ministers . ? ?
12
lot
3. Loan Service
12
4. Budgetary Expenditure Residual
12
III.
Revenues
13
A. Turnover Tax
13
B. Deductions from Profits
13
C. Budget Revenues Received from the Population
14
D. Miscellaneous
14
1. Income Tax on Organizations
14
2. Social Insurance Receipts
16
3. Revenue Residual
16
a. Local Taxes and Collections
16
b. Collections and Nontax Revenue
c. Adding into the Budget Certain Expenditures
16
? of Local Industry
16
d. Other
17
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Appendixes
Appendix A. Accounting Change in the Soviet Budget for
1961
Page
21
Appendix B. Residuals in the Soviet Budget 23
Appendix C. Budgets of the Union-Republics of the USSR .
29
Tables
1. Financing the National Economy in the USSR by Budget
Funds, by Economic Sector, 1956-61
2. Plan for Financing the National Economy in the USSR
by Enterprise Own Funds, by Economic Sector, 1956-61 .
3. Capital Investment and Planned Sources of Financing in
the USSR, 1957-61
4. Working Capital Norms of State Enterprises in the USSR,
1959-62
5. Planned Allocations to State Agriculture in the USSR,
1958-61
5
6
7
8
10
6. State Budget Expenditures for Social-Cultural Measures
in the USSR, 1958-61. 11
7. Profits of State Enterprises and Organizations in the
USSR, 1957-61 15
8. Expenditures of the State Budget in the USSR, 1956-61 18
9. Revenues of the State Budget in the USSR, 1956-61 . . 19
10. Residuals in the State Budget in the USSR .(E Industry
and Construction Residual and Budgetary Expenditure
Residual), 1956-61 27
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STAT
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11. Residuals in the
tified Residual
1956-61
12. State Budgets of
State Budget in the USSR (FNE Uniden-
and Budgetary Revenue Residual),
the Union-Republics of the USSR, 1960
and 1961 Plans
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Page
28
30
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r
THE SOVIET BUDGET FOR 1961
Summary and Conclusions
The state budget of the USSR for 1961 contains no great surprises.
Revenues are planned to be 79 billion rubles* in 1961, a 5-percent in-
crease above the comparable figures for 1960, and are planned to exceed
expenditures by 1.5 billion rubles. Planned expenditures for 1961 are
77.5 billion rubles, 6.7 percent above the comparable figures for 1960.
Turnover tax receipts, planned to be 32.5 billion rubles in 1961,
an increase of 2.5 percent above the 1960 plan, reflect a somewhat
lower rate of tax. Budget receipts from profits in 1961 are planned
to be 20.5 billion rubles, a 12.3-percent increase above the compara-
ble plan figure for 1960. This rate of increase reflects a small re-
duction in the percentage of total profits taken for the budget, in
that total profits of state enterprises and organizations are to be
14 percent above the comparable plan figure for 1960. Direct taxes
on the population are budgeted at 5.5 billion rubles for 1961, and
the revenue from State Loans, which will come from subscriptions and
increased deposits with the savings banks, is to be 1.4 billion rubles
in 1961.
Expenditures from the budget for the category Financing the Na-
tional Economy are planned to be 33.9 billion rubles in 1961 as
against planned expenditures in 1960, on a comparable basis, of
approximately 31 billion rubles. The total plan for Financing the
National Economy in 1961 is 56.4 billion rubles, an increase of 11.8
percent above the comparable figure planned for 1960.
Budget expenditures for the category Social-Cultural Measures are
to be 27.1 billion rubles in 1961 as against actual expenditures in
1960 of 24.9 billion rubles, an increase of 8.8 percent. Within this
category, budget expenditures for national education, training of
cadres, science, and culture are to be 11.3 billion rubles in 1961,
* Throughout this report, unless old rubles are explicitly speci-
fied, all references to rubles should be read as amounts in new rubles,
original amounts in old rubles being converted to new rubles at one-
tenth of their original sum. The official Soviet rate of exchange
for the new ruble is 0.90 ruble to US $1. Unless otherwise indicated,
ruble values in this report are in current rubles, adjusted for the
conversion as indicated above.
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11 percent above the expenditures planned for 1960. State expenditures
for science in 1961 are to be 3.8 billion rubles, 16 percent above the
figure for 1960.
The explicit defense budget is to be 9.255 billion rubles in 1961,
whereas expenditures planned for 1960 were 9.61 billion rubles. The
decline in planned expenditures is compatible with the announced
plans for reduction in manpower. Administrative costs are down
slightly in 1961 to 1.09 billion rubles.
2
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I. Introduction
A. Availability of Data
The information presently available on the Soviet budget for
1961 is limited to the speech of Finance Minister Garbuzov to the
Supreme Soviet on 20 December.1960, as reported in Pravda on the next
day, and to an article by Garbuzov in the January issue of Finansy
SSSR. In contrast with the past, there was no article this year in
the journal Planovoye khozyaystvo, and the information in Finansy SSSR
goes little beyond what was given in the speech, other than to give
the figures for the budget plan as confirmed by the Supreme Soviet.
B. Accounting Change in the New Budget*
The adoption of the "new ruble" on 1 January 1961, which
brought the external value of the ruble approximately equal to its in-
ternal value, has had the effect of eliminating the heavy book profits
on imports as well as the need for a heavy subsidy on exports. The
budget for 1961, drawn up in this new situation, could not, therefore,
have been directly compared with the budget for 1960, which included
profits from imports and a subsidy for exports. In all comparisons
of the new budget with figures for 1960, the figures for 1960 appear
to have been recalculated -- the original planned expenditures for
1960 being reduced by about 1.95 billion rubles and the original
planned revenues for 1960 being reduced by about 2.09 billion rubles.*
These figures apparently represent the subsidies and book profits,
respectively, planned for foreign trade in 1960.
II. Expenditures
The general trend in Soviet state budget expenditures may be seen
in Table 8.** Adjusting for the elimination of the subsidy (balanced
by the profit on imports) that was paid on exports, there is a modest
increase in the expenditure category Financing the National Economy as
well as in the category Social-Cultural Measures.
The explicit Defense budget was reduced to 9.255 billion rubles,
a drop compatible with the announced reductions in manpower. Outlays
for Administration continue to decrease slightly.
In previous years the relationship of Financing the National
Economy, actual, to Financing the National Economy, plan, has sug-
gested that the Reserve Funds of the Council of Ministers were ex-
pended primarily to finance expenditures under Financing the National
* For additional details, see Appendix A.
** P. 18, below.
3
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Economy. In 1960, however, the Reserve Funds of the Council of Minis-
ters evidently were not used to any significant extent to finance ex-
penditures under Financing the National Economy, but they were used to
finance some sort of expenditure under the category Budgetary Expendi-
ture Residual.
A. Financing the National Economy
The budget category Financing the National Economy constitutes
only a part of the "plan" for Financing the National Economy, which
is financed from the budget and from the "own resources" of the enter-
prises concerned. A breakdown of the budget category Financing the
National Economy for 1956 through the 1961 plan is given in Table 1.*
Details of the supplementary plans for Financing the National Economy
by enterprise own funds** for the same years are given in Table 2.XXX
The year 1960 is the first for several years when even a par-
tial breakdown of the budget category Financing the National Economy
has been available both for plan and for actual. It may be noted that,
in 1960, Industry and Construction, actual, was only a very small
amount greater than Industry and Construction, plan.
Planned budgetary expenditure for trade for 1960 has been so
estimated as to leave only a small amount for domestic trade, after
the adjustment to eliminate the subsidy paid on foreign exports. Ex-
penditures charged to the budget in connection with agricultural pro-
curement can only be guessed at, but it is possible that they have by
now been totally eliminated. Increased expenditures in the Municipal
Economy reflect expenditures for housing now handled under the Munici-
pal Economy.
The Unidentified Residual under Financing the National
Economy is discussed separately.t
1. Capital Investment
Planned capital investment and planned sources of financ-
ing for 1957 through'1961 are shown in Table 3.tt In the budget
Table 1 follows on p. 5.
** Enterprise own funds (sobstvennyye sredstva predpriyatiya) con-
sist mainly of profits, amortization allowances, and allowances for
above-plan reductions in investment costs resulting from increased
efficiency.
xxx Table 2 follows on p. 6.
t See Appendix B.
tt Table 3 follows on p. 7.
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Table I
Financing the National Economy in the USSR by Budget Funds
by Economic Sector
1956-61
Billion Current Rubles
Economic Sector
1956E2./
1957
2/
1958
2/
1959
1/
1960 2/
1961 !I
Confirmed
Plan
Adjusted
Plan
Reported
Actual
Plan Actual
Plan
Actual
Plan
Actual
Plan
Actual
Plan
Industry and Construction
Agriculture and Forestry
Transportation and Communications
Other (unspecified)
Trade (Domestic and Foreign)
Agricultural Procurement
Special Price Differential
Municipal Economy
FINE 1/ Unidentified Residual
Total
11.00
12.82
11.84
13.08
12.90
V.A.
N.A.
N.A.
N.A.
N.A.
N.A. y
N.A.
N.A. hi
29.03
14.53
V.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
32.37
15.19
(9.94)
(0.25)
(30.90
15.6
16.1
77
(T.T)
(i175)
TT
57-0
5.18
=
5.34
(174) e
3.03
3.23
3.3
2.16
1.b0
577
2.50
2.54
(2.5)
()
(0.25)
(0.32)
3.1
(5.93)
31.0
4.63
6.18
(5.64)
1:678
11.89
(1.10)
(0.6)
1,5
(09)
(1.59)
23.73
1.22
0.64
0
1.13
1.64
24.52
(1.5)
(0.8)
(1.34)
(1.9)
24.47
N.A.
N.A.
N.A.
N.A.
26.70
(1.5)
0.86
(1.4)
(1.88)
25.72
(1.8)
(0.9) 1/
(2.8)
(5.33)
30.89
(2.2)
(0.9) 1/
2.86
(5.93)
32.85
(0.25)
(o)
3.6
(7-15)
33.9
a. 1/. Estimates in the plan figures are based on the actual figures.
b. 2/. Increase in the estimate for trade is based on the increase in exports.
c. 3_/. The figure for transportation and communications increased by 0.4 billion rubles (representing the estimate of expenditure for motor and river transport) to
make it comparable with other years. The estimate is based on the 1959 figure (see footnote d, below).
d. 4/. The figure shown for transportation and communications is taken from the budget speech, a figure that evidently covers all transportation, as it is 0.42 bil-
lion rubles higher than the figure in the Planovoye khozyaystvo article, which is explicitly stated to cover transportation of All-Union subordination only. The
estimate for municipal economy reflects the transfer of housing and is comparable with the plan figure for 1960.
e. For an explanation of the adjustment, see Appendix A.
f.
g. .Figures in parentheses are estimates.
h. Just how the government handled the increased agricultural procurement payments instituted in mid-1958 is not known. The reported total of expenditures for
Financing the National Economy in 1958 was large enough to have permitted a special expenditure from the budget of 1.5 billion rubles, over and above the provision
of 0.86 billion rubles set up in the original budget to cover extra payments by the procurement agencies. Of such an amount of 1.5 billion rubles, 1 billion rubles
would have been offset by savings in the explicit agricultural budget where expenditures, as a result of the abolition of the machine tractor stations, are esti-
mated to have been only 4.31 billion rubles I/ as against the original provision of 5.34 billion rubles indicated above
i. In the absence of precise information the estimate of 0.9 billion rubles for Agricultural Procurement has been carried forward in the plan figures for 1959 and
1960.
j. Financing the National Economy.
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Table 2
Plan for Financing the National Economy in the USSR
by Enterprise Own Funds, by Economic Sector..!1/
1956-61
Billion Current Rubles
Economic Sector
1956
1957
1958
1959
1960
1961
Industry
and Construction
7.30
8.30
9.70
10.71
12.74
N.A.
Agriculture
and Forestry
0.80
0.87
1.18
1.47
1.83
2.0
Transportation
and Communications
1.90
1.91
1.78
12/
2.72
12/
3.19
N.A.
Domestic Trade
0.12
0.38
0.48
0.51
(0-53)
2/
N.A.
Residual
0.89
1.69
2.43
2.15
1.18
N.A.
Total
11.01
13.15
15.57
17.56
19.47
22.5
a.
b. All-Union subordination only.
c. Estimate.
speech by Garbuzov, there was a statement that the capital works to be
carried out under the state plan in 1961 would be financed in part by
"funds, more than 300,000 rubles, from noncentralized sources." This
reference is not unambiguous, but it is understood to refer to new
capital investment planned for 1961 in the former producers cooperatives,
which were brought over into "state" industry, apparently just before
the close of the books for the year 1960.
2. Working Capital
The working capital norms of Soviet enterprises refer to
minimum working capital needs supplied by the enterprises' own funds.
These funds are supplemented by short-term borrowing from the State
Bank. The development of the working capital norms of Soviet enter-
prises over the last few years is shown in Table 4.* The increases
in actual norms above planned norms are believed to be usually fi-
nanced by above-plan profits.
* Table 4 follows on p. 8.
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Table 3
Capital Investment and Planned Sources of Financing
in the USSR 2/
1957-61
Billion Rubles
1957 1958 1959 1960 1/ 196112,/
Volume (centralized) (in
"estimate" prices) 2/
Total (plan)
17.52
19.88
22.60
25.55
29.04
Total (actual)
18.47
19.91
21.95
N.A.
N.A.
Planned financing (cen-
tralized) (in current
rubles)
Total (plan)
17.88
20.38
23.31
26.24
29.5
Planned sources
Budget
12.96
14.27
16.37
18.06
19.5
Profit
1.52
2.51
2.94
3.43
4.2
Amortization
2.49
2.77
3.25
3.61
4.1
Other
0.92
0.83
0.75
1.14
1.7
Decentralized (actual) (in
current rubles) 1/
2.59
4.04
4.85
N.A.
N.A.
a. 2/. Because of rounding, components may not add to the totals
shown.
b. Beginning with 1960, figures for centralized investment include
? outlays for project planning. Such outlays in 1960 were set at
0.62 billion rubles.
c. Construction plans are made up in terms of estimate prices,
which are prices of 1 July 1955 with certain subsequent adjustments.
The relationship of estimate prices to current prices is reflected
by the relationship of the planned volume, as expressed in estimate
prices, to the planned financing for the same volume for the same
year, as expressed in current rubles.
d. Excluding collective farm investment.
On 1 January 1961, as against enterprise own funds amount-
ing to 36.6 billion rubles, short-term loans supplied by the State
Bank totaled something more than 32 billion rubles. El/ This rela-
tionship of bank loans to own funds has remained comparatively stable
in recent years.
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Table 4
Working Capital Norms of State Enterprises in the USSR 2/
1959-62
Billion Current Rubles
Economic Sector
1 January 1959
1 January 1960
1 January 1961
1 January 1962
Plan
Actual
Plan
Actual
Plan
Actual
Plan
Industry and
Construction
18.79
18.72
20.07
20.48
22.26
23.0
24.9
Agriculture
3.01
3.27
3.74
3.85
4.30
4.5
5.2
Domestic Trade
2.98
3.02
3.33
3.53
3.77
4.o
4.4
Transportation
and Communications
(All-Union ministries)
0.87
1.28
1.37
1.46
1.57
1.6
1.7
Other
1.88
1.93
2.06
2.33
2.54
3.5
3.7
Total
27.53
28.22
30.57
31.65
34.44
36.6
39.9
Planned increase in
working capital norms
From the budget
From enterprise
own
0.61
0.73
1.1
funds
1.74
2.06
2.2
Total
2.35
2.79
3.3
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3. Agriculture
Planned budget allocations to state agriculture* in 1961
are up sharply to 4.2 billion rubles compared with 3.23 billion rubles
planned for 1960 (see Table 5**). The budget allocation in 1961 is to
be supplemented lpy 2.0 billion rubles from own funds. Investment, not
including the construction of housing and of cultural buildings, is
planned to be 2.3 billion rubles. Total expenditures on state farms
will amount to 2.7 billion rubles from the budget and to 1.4 billion
rubles from own funds.
Capital investment by the collective farms is planned to
be 4.6 billion rubles from their own funds plus another 0.8 billion
rubles to be financed by credit. 12/
This increase in expenditures planned for agriculture is
in part a response to the poor production of the last 2 years, but it
also reflects a step-up in the production of agricultural machinery
after extensive model changes. The program for the "modernization"
of agricultural machinery models caused a short-run reduction in the
over-all production of agricultural machinery between 1958 and 1960.
The reorganization in agriculture, which was announced in
January, seems to have been expected when plans for 1961 were made.
B. Social-Cultural Measures
Expenditures from the budget for Social-Cultural Measures in
1961 are planned to be 27.1 billion rubles, up 8.7 percent from the
actual expenditures in 1960. Details of the planned expenditures for
1961, in comparison with the expenditures for earlier years, planned
and actual, are given in Table 6.xxx It will be noted that planned
expenditures for education continue to rise and that state expendi-
tures planned for science in 1961 are 3.8 billion rubles, up 16 per-
cent from 1960.
* The Soviet term state agriculture includes state farms, the ma-
chine tractor stations -- repair tractor stations (MTS-RTS's), and
general agricultural programs (irrigation, experimental stations, and
the like), but It excludes collective farms. In most cases, statis-
tics labeled state agriculture also include forestry.
** Table 5 follows on p. 10.
*** Table 6 follows on p. 11.
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Table 5
Planned Allocations to State Agriculture in the USSR 2/
1958-61
Billion Current Rubles
1958
1959
1960
1961
Total financing
6.52
4.50
5.06
6.2
Budget funds
5.34
3.03
3.23
4.2
State farms
1.19
1.40
1.90
2.7
MTS-RTS's 12/
2.96
0.37
0.29 2/
N.A.
Other
1.19
1.26
1.04
N.A.
Enterprise own funds
1.18
1.47
1.83
2.0
Of which:
State farms
N.A.
N.A.
N.A.
1.4
Total centralized investment
222
1.91
1.90 1/
Budget funds
2.59
1.52
N.A.
N.A.
Own funds
0.38
0.39
N.A.
N.A.
a. 13./
b. Machine tractor stations in 1958, repair tractor stations
thereafter.
c. This figure may include a small amount of enterprise own
funds in addition to budget funds.
d. Calculated figure.
C. Defense
For several years, actual expenditures under the explicit
Defense category have been somewhat less than those planned (see
Table 8*). Language in the 1961 budget speech suggests that actual
expenditures in 1960 were again less than planned: possibly 9.33 bil-
lion rubles compared with the original budget allocation of 9.61 bil-
lion rubles. Expenditures for 1961 were budgeted to be 9.255 billion
rubles, a drop in comparison with the planned budget for 1960, which
is compatible with the announced reductions in manpower.
* P. 18, below.
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?
Table 6
State Budget Expenditures for Social-Cultural Measures
in the USSR 21
1958-61
Billion Current Rubles
Total for Social-Cultural
1958
Actual
1959
Actual
1960
1961
Plan
Actual
Plan
Measures
21.42
23.12
24.74
24.9
27.1
Education
8.60
9.41
10.2
10.3
11.3
General Education
3.98
4.43
(4.5)
12/
N.A.
4.7
Training of Cadres
2.35
2.39
2.21
N.A.
2.2
Science
1.70
2.00
(2.84)
(3.28)
3.8 2/
Other
0.57
0.59
(0.65)
N.A.
0.6
Health and Physical
Culture
4.12
4.47
4.75
4.8
5.2
Social Welfare
8.70
9.24
9.79
9.8
10.6
Social Security
2.44
2.67
2.30
N.A.
N.A.
Social Insurance
5.73
6.07
7.02
(7.05)
7.8
Aid to Mothers
0.53
0.50
0.47
N.A.
N.A.
a. ill/
b. Figures in parentheses are estimates.
c. Described as expenditure by the state, but there is a pos-
sibility that this figure represents total expenditure, financed
both from the state budget and from enterprise own funds.
The announced allocation for Defense represents the ruble out-
lay of the Soviet government for support of certain military programs.
Certain programs that normally would come under the heading of na-
tional security are known or are believed to be excluded, however, and
the published figure for outlays for Defense therefore understates
total expenditures. For example, outlays for scientific research lead-
ing to new weapons are included under the category Science (under Edu-
cation), and some outlays for development of new weapons and equipment
may be included similarly under the category Financing the National
Economy. In this connection, information concerning the organization
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of the Soviet atomic energy program indicates that, since 1953 at
least, its activities have been subordinate to the Ministry of Medium
Machine Building and therefore are most likely financed from funds for
Financing the National Economy. 12/ The Financing the National Econ-
omy residuals contain large sums to unspecified programs that could
conceivably be for defense purposes.* Finally, payments to border
guards and other militarized security forces are known to be financed
separately in the budget.
D. Administration and Miscellaneous
1. Administration
Outlays for Administration continue to decline, both ab-
solutely and as a percentage of the total budget. Planned outlays for
1961 are 1.09 billion rubles against 1.10 billion rubles reported for
1960 (see Table 8**).
2. Reserve Funds of the Council of Ministers
Reserve Funds, for expenditure by the Council of Ministers
of the USSR and by the Councils of Ministers of the union-republics,
are set up in the planned budgets. Expenditures of these funds, how-
ever, are shown in the reports of budgetary expenditures under the
expense category where the expenditure was made. For the years 1957,
1958, and 1959 the reports of actual expenditures indicated that these
reserve funds probably had been used, in major part, to finance expen-
ditures under Financing the National Economy. For the year 1960, how-
ever, the information given on actual expenditures indicates that most
of the expenditures financed from these special funds probably were
not charged to any of the main expenditure categories but were charged
to the Budgetary Expenditure Residual (see Table 8**).
3. Loan Service
Recent explicit information is not available on the cost
of the Loan Service. It is assumed to be continuing at an approxi-
mately unchanged level of 0.6 billion rubles a year.
4. Budgetary Expenditure Residual
In terms of planned figures the Budgetary Expenditure . A
Residual has been holding fairly steady. As indicated in II, D, 2,
above, however, Reserve Funds of the Council of Ministers seem to have
,
* For a detailed treatment of residuals, see Appendix B.
** P. 18, below.
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been used in 1960 to finance large above-plan expenditures in this
category. The figures shown for the Budgetary Expenditure Residual
(see Table 8*) include outlays for internal security (such as the ex-
penditures of the Ministry of Internal Affairs and of the Committee
for State Security), and it would appear that they include budget ap-
propriations to increase the funds of the long-term investment banks.
Appropriations for this purpose in 1957 were 0.46 billion rubles, and
in 1958 they were planned at 0.30 billion rubles. 12/
III. Revenues
The general trend in the Soviet state budgetary revenues can be
seen in Table 9.**
A. Turnover Tax
The turnover tax, which represents the largest single revenue
item in the budget, is effectively an excise tax levied on consump-
tion goods. The revenue from this tax is planned to increase this
year, in comparison with last year's plan, by a modest 2.5 percent,
indicating a somewhat lower rate of tax on a trade turnover that is
planned to increase 5.8 percent. 1Li/
B. Deductions from Profits
All of the profits from state enterprises are disposed of in
accordance with instructions laid down by the state. In 1961 the state
will take directly for the budget about two-thirds of the profits that
are planned. Of the above-plan profits, by far the larger part is left
with the enterprises. Profits paid to the budget are called "profit
deductions." Profits left with the enterprises, with the exception of
amounts used to finance various types of bonuses, are used, together
with accumulations of amortization funds not used for capital repair,
for capital investment and other planned expenditures.
In recent years, total profits paid to the budget (see
Table 9**) have included an ever-increasing amount of "profits" earned
on imports, arising from the difference between the internal and ex-
ternal values of the Soviet currency, in spite of the fact that the
budget also was being charged to cover an ever-increasing loss on
exports. Planned budget receipts from profits in 1961, 20.5 billion
rubles, are only slightly above planned budget receipts from profits in
1960, 20.3 billion rubles, because of the elimination of these "pro-
fits" in 1961. Reducing the profit receipts planned for 1960 by
* P. 18, below.
** P. 19, below.
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2.05 billion rubles* -- representing planned receipts in 1960 from
"profits" earned on imports -- causes the increase for 1961 above 1960
to rise to 12.3 percent. The total profits of state enterprises for
1961, which are planned at 30.2 billion rubles (not including adjust-
ments from previous years), are 14 percent above the comparable figure
planned for 1960 and 8.6 percent above expected profits for 1960.
Over-all data on profits, planned and earned, from 1957 through
the 1961 plan, are given in Table 7.** The sharp increase in planned
profits for 1960 above 1959 suggests that some change in the way of cal-
culating profits took place between these years. No firm explanation
of this apparent change has been found up to this time. Another prob-
lem in connection with Soviet profit figures has to do with the amount
and the method of handling of planned losses.***
C. Budget Revenues Received from the Population
.The state budget for 1961 continues to show a reduction in the
percentage of total revenue to be received directly from the popula-
tion, in the form of income taxes, and through the use of increased
savings deposits to buy government bonds (see Table 9t). The planned
decrease in the income and special personal taxes to 5.5 billion
rubles for 1961 reflects continuing implementation of the plan initi-
ated on 1 October 1960 to eliminate income taxes by 1 October 1966.
In terms of this over-all plan, all taxes on incomes from 50.1 to
60 rubles per month will be abolished on 1 October 1961, with a simul-
taneous reduction of the taxes on incomes from 60.1 to 70 rubles per
month.
Savings deposits are expected to reach a total of 11.5 billion
rubles by the end of the year, an increase for the year of 0.9 billion
rubles. This increase will finance the major part of the revenue
of 1.4 billion rubles expected for the year from the further sale of
government bonds.
D. Miscellaneous
1. Income Tax on Organizations
There has been no information as to the amount of receipts
planned in this category in 1961. Planned receipts for 1960 were
2.13 billion rubles. 12/
For additional details, see Appendix A.
** Table 7 follows on p. 15.
xxx For a discussion of this problem, see Appendix B.
t P. 19, below.
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Table 7
Profits of State Enterprises and Organizations in the USSR 2/
1957-61
Billion Current Rubles
1957 1960
1958 1959 1961
Corrected Adjusted
Plan Plan Actual Plan Actual Plan Plan/2/ Actual Plan
Total 15.49 18.84 19.64 21.95 23.24 28.53 26.48 27.8 2/ 30.2
To budget 1/ 12.86 15.25 20.07 18.02 18.7 20.2 2/
Retained 5.98 6.70 8.46 8.46 9.1 2/ 10.0 2/
Of which:
Industry and Construction 8.89 11.16 11.76 13.25 14.33 18.27 16.22
To budget
Retained
Total
Industry and Construction
7.13
4.03
8.60 12.48
4.65 5.79
10.113
5.79
Percentage Increase in the Plan Above the Previous Year's Plan
21.6 16.5
25.5 18.7
30.0 14.0 2./
37.9 N. A.
a. 22/
b. See B, p. 13, above.
c. Calculated figures.
d. Less than the total amount planned to be carried to the budget, by amounts relating to previous
years. For amounts planned to be carried to the budget, see Table 10, P. 27, below.
e. Calculated in relation to the adjusted plan figure, which is the comparable figure.
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2. Social Insurance Receipts
These receipts consist of payments to the budget by state
enterprises of a fixed percentage of their wage bill. Receipts planned
for 1961 have not been announced, but they are estimated to be 3.8 bil-
lion rubles (see Table 9*).
3. Revenue Residual
Several different types of items are known to be included
in what is here called the Revenue Residual, but information on these
items is available only on a very scattered basis.
a. Local Taxes and Collections
The 1958 plan called for 0.53 billion rubles to be
received, for the benefit of local budgets, in local taxes and fees. 21/
It is not known at what level these local taxes and fees are being con-
tinued.
b. Collections and Nontax Revenue
In 1955, "collections and nontax revenues" were 2.23
billion rubles. 22/ Probably included in this category is income from
budgetary organizations, such as the income from forestry, which in
1958 was planned at 0.21 billion rubles. 23./ Probably also in this
category are certain regular "price differences," such as the "price
difference on meat and milk goods" and the "price difference on petro-
leum products," which are paid into the budget but are not handled as
"turnover taxes." 2/2/
c. Adding into the Budget Certain Expenditures of Local
Industry
Recently it has become evident that certain small ex-
penditure items -- in education, for example -- are in fact financed
at the expense of "the accumulations of rayon and local industry." 22/
The magnitude of the identified items of this nature is about 0.05 bil-
lion rubles a year. It would appear that these items have been intro-
duced into the totals of the state budget by adding them into the
local budgets, both as expenditures and as miscellaneous receipts.
* P. 19, below.
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d. Other*
Proceeds from the sale of gold from the State Material
Reserves or from the sale of other state property such as the machines
sold by the machine tractor stations to the collective farms are entered
as revenue in the Soviet budget. Repayments of foreign loans also are
believed to be accounted for as budgetary revenue.
* For some discussion of the Revenue Residual, .see Appendix B.
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Table 8
Expenditures of the State Budget in the USSR
1956-61
Billion Current Rubles
1956 !I
1957 IV
1958 2/
1959
1/
1960 2/
1961 1/
Plan
Confirmed
Plan
Adjusted
Plan f/
Reported
Actual e
Plan
Actual
Plan
Actual
Plan
Actual
Plan
Actual
Plan
Financing the National Economy
23.73
24.52
24.47
26.70
25.72
29.03
30.89
32.37
32.78
32.85
(30.90) h/
31.0
33.9
Industry and Construction
11.00
12.82
11.84
13.08
12.90
N.A.
14.53
N.A.
15.18
15.19
15.19
15.6
16.1
Agriculture and Forestry
4.86
4.91
5.29
5.18
5.34
N.A.
3.03
N.A.
3.23
3.23
3.23
3.3
4.2
Transportation and Communications
2.18
2.16
1.80
2.26
(1.84) 1/
N.A.
2.50
N.A.
2.54
2.54
2.54
(2.5)
(2.6)
Unspecified Remainder
5.69
4.63
5.54
6.18
(5.64)
N.A.
10.83
N.A.
11.83
11.89
(9.94)
(9.6)
(11.0)
Social-Cultural Measures
16.15
16.44
18.84
20.05
21.28
21.42
23.22
23.12
24.74
24.78
24.9
27.1
Education (and Science)
7.28
7.36
7.89
8.07
8.42
8.60
9.44
9.41
10.20
10.22
10.3
11.3
Health and Physical Culture
3.51
3.57
3.79
3.83
4.04
4.12
4.41
4.47
4.75
4.77
4.8
5.2
Social Welfare
5.36
5.51
7.16
8.15
8.82
8.70
9.37
9.24
9.79
9.79
9.8
10.6
Administration
1.25
1.21
1.19
1.19
1.19
1.20
1.15
1.12
1.11
N.A.
(1.10)
1.09
Defense
10.25
9.73
9.67
(9.50)
9.63
9.36
9.61
9.37
9.61
N.A.
9.255
Reserve Funds, Councils of
Ministers
(1.30)
0
1.40
o
1.67
o
2.12
0
2.76
N.A.
2.80
Loan Service
(1.60)
1.63
1.80
(o.40)
(0.30)
0.37
(0.60)
0.69
(0.60)
N.A.
_o
(0.62)
(2.6.g)
Budgetary Expenditure Residual
(2.68)
2.82
3.09
(2.89)
(2.98)
2.89
(3.17)
3.73
(2.88)
N.A.
(5.42)
(2-755)
Total expenditures
56.96
56.35
60.46
60.73
62.77
64.27
70.76
70.40
74.48
74.58
(72.63)
(72.35)
77.5
a.
b. 2i/
c. 21
g. For an explanation of the adjusted figures, see Appendix A.
h. Figures in parentheses are estimates.
i. The figure given in the source increased by 0.4 billion rubles, representing an estimate of the expenditure planned for motor and river transport, to make the resulting
figure comparable with other years. The estimate is based on the figure for 1959 of 0.42 billion rubles. See Table 1, footnote d, p. 5, above.
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Table 9
Revenues of the State Budget in the USSR
1956-61
Billion Current Rubles
1956 LL/ 1957 b/
1960 !/
1961 1/
1958 E/ 1959 4/
Confirmed
Plan
Adjusted
Plan
Reported
Actual
Plan Actual Plan Actual
Plan Actual Plan Actual Plan
Plan
Turnover Tax 27.12 25.86 27.73 27.56
30.15 30.45 33.30 31.07 31.71
N.A.
31.3
32.5
Receipts from Profits 10.73 10.29 11.60 11.84
13.03 13.54 15.49 15.96 20.30
20.30
19.0
20.5
Revenue from MTS-RTS's 1/ N.A. 1.06 1.39 1.13
1.19 0.97 0.15 0.18 N.A.
N.A.
N.A.
N.A.
Income Tax on Organizations N.A. 1.41 1.55 1.41
1.56 1.66 1.96 1.90 2.13
N.A.
(2.2)
(2.3)
Of which:
Collective Farms 0.75 0.96 LA.
0.96 N. A. 1.33 N.A. R.A.
N.A.
Cooperatives 0.57 0.50 LA.
0.60 N.A. 0.63 N.A. R.A.
LA.
State Loans N.A. 4.43 3.92 3.52
1.76 1.06 (1.10) 1.49 (1.20)
N.A.
(1.38)
(1.4)
Of which:
Subscription 3.28 2.66 1.85
0.26 0.32 N.A. N.A. N.A.
N.A.
N.A.
Savings Deposits Purchases 1.00 1.10 1.60
1.30 0.65 0.72 1.33 0.84
N.A.
0.9
Taxes on the Population 5.03 5.05 5.15 5.20
4.98 5.19 5.60 5.52 5.72
N.A.
(5.72)
5.5
Social Insurance Receipts N.A. 2.83 3.10 3.33
3.33 3.31 (3.35) 3.63 (3.40)
R.A.
(3.6)
(3.8)
Revenue Residual N.A. 7.66 7.28 8.70
8.29 11.05 (11.38) 14.26 (12.75)
N.A.
(12.15)
13.0
Total Revenues 59.27 58.59 61.72 62.69
64.29 67.23 72.33 74.01 77.21
77.30
(75.25) y
(75.35)
79.0
Surplus of Revenue Above Ex-
penditures 2.31 2.24 1.26 1.96
1.52 2.96 1.57 3.61 2.73
2.72
(2.62)
(3.00)
1.5
a. E./
b. 33/
c'
d. 3_56(
e. 3_/
g. Figures in parentheses are estimates.
h. Reduced by 2.05 billion rubles in terms of calculations in Appendix A.
i. Machine tractor stations until 1958, repair tractor stations thereafter.
See especially the first footnote on p. 21, below.
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APPENDIX A
ACCOUNTING CHANGE IN THE SOVIET BUDGET FOR 1961
Near the beginning of Finance Minister Garbuzov's speech on the
budget on 20 December 1960, there is a statement that planned revenues
for 1961, at 78.9 billion rubles, and planned expenditures for 1961,
at 77.5 billion rubles, are up 4.9 percent and 6.7 percent, respec-
tively, from "figures for 1960." .18.1 This would make the "figures for
1960" about 75.21 billion rubles for revenues and about 72.63 billion
rubles for expenditures. A little later in the speech the planned
expenditure figure for 1961, 77.5 billion rubles, is repeated in a
context where there is a clear statement that these planned budget
expenditures are 4.9 billion rubles above the budgetary expenditures
that were planned for 1960. Since this indicates that planned expen-
ditures were about 72.6 billion rubles, it confirms that the figures
of 75.21 billion rubles and 72.63 billion rubles derived above are
planned revenues and planned expenditures, respectively, for 1960.
Planned revenues and planned expenditures for 1960, as originally con-
firmed, however, were 77.30 billion rubles and 74.58 billion rubles,
respectively. 12/ Evidently, for the purposes of comparison with the
budget for 1961, the budget for 1960 has been recalculated, planned
revenues being reduced by about 2.09 billion rubles and planned ex-
penditures by about 1.95 billion rubles.*
The further information given on the expected actual figures for
1960 for the various subsidiary budget categories indicates that the
adjustment was made on the revenue side in "receipts from profits"
and on the expenditure side in the "unspecified remainder" of Financ-
ing the National Economy. This and the order of magnitude of the
adjustment suggest that, with the profits on foreign trade and the
subsidy on foreign trade probably eliminated in the budget for 1961
by the introduction of the new ruble, the budget for 1960 -- for com-
parisons with the budget for 1961 -- has been recalculated, both plan
and actual, to eliminate the profits and subsidy on foreign trade.
Furthermore, the 1961 budget speech reports the total plan for
Financing the National Economy for 1961 as 56.4 billion rubles,
11.8 percent above the plan for 1960. This relationship would make
the 1960 plan 50.45 billion rubles, 1.87 billion rubles less than
the 52.32 billion rubles originally set up for 1960.** The discrep-
ancy between the result obtained here and that derived above could
well be the product of differing rounding techniques.
* Each of these adjustments has a range of error of plus or minus
-0.04 billion rubles.
** An amount of 32.85 billion rubles to be financed from the budget
and 19.47 billion rubles to be financed from enterprise own funds (see
Tables 1 and 2, pp. 5 and 6, respectively, above).
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APPENDIX B
RESIDUALS IN THE SOVIET BUDGET
In the Soviet budget, there are three series of expenditure resid-
uals that merit attention -- the Budgetary Expenditure Residual (the
last line before the total in Table 8*), the Unidentified Residual
under Financing the NationAl Economy (FNE) (the last line before the
total in Table 1**), and a residual that may be derived by subtract-
ing from FNE Industry and Construction the known figures or estimates
of expenses known to be charged to that account.
Even though actual figures for FNE Industry and Construction for
1958 and 1959 are not known, working estimates can be arrived at by
adding to the plan figures either the amount of the Reserve Funds or
the overage (actual above plan) in Financing the National Economy,
whichever is the smaller. On this basis, 1.67 billion rubles are
added to the plan figure for 1958, and 1.48 billion rubles are added
to the plan figure for 1959 (see Table 10***).
For investment under FNE Industry and Construction, a figure is
available for 1956. The estimates shown in Table 10 for 1957 and
1958 are from Soviet National Accounts, 1950 and 1955-58, Table 8,
Appendix E, as yet unpublished. _2/ The estimate for 1959 follows
the methodology laid out there -- that is, planned budgetary expendi-
ture, 8.92 billion rubles 111/ plus 0.35 billion rubles for supple-
mental allocations and 0.fuD billion rubles for decentralized invest-
ment.
Budgetary allocations, under FNE Industry and Construction, for
increasing working capital are not large and can be estimated as the
planned allocations for all enterprises, less the estimates for state
farms derived in Soviet National Accounts, 1950 and 1955-58 (referred
to above), Table 19, Appendix C. On this basis, 1956 would be 0.38
billion rubles 1E/ less 0.20 billion rubles; 1957 would be 0.47 bil-
lion rubles14-43_/ less 0.15 billion rubles; and 1958 would be 0.56 bil-
lion rubles / less 0.25 billion rubles. For 1959 the figure is
given as 0.17 billion rubles.Ill/
The costs of the design bureaus, which work out the detailed plans
for capital construction, can be obtained directly from data on the
costs of capital investment in the Soviet handbooks, which are reported
both as including and excluding the costs of the design bureaus. The
*
P.
18,
above.
**
P.
5,
above.
P.
27,
below.
***
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costs of research and development with respect to current industrial
production, but charged to the budget, have been taken as equal to the
costs of the design bureaus in 1956, and it has been assumed that they
declined thereafter at 0.10 billion rubles per year. In March 1955,
detailed instructions were issued as to how all costs of development
were to be charged to costs of production, generally over 2 years and
exceptionally over 3 or 4 years. 1?./
Soviet accounting procedures, in effect during the whole of the
period covered here, include a budgetary reporting of industrial prof-
its which does not take into consideration the fact that certain
"planned losses" are covered from the budget, on the expenditure side.
For certain other purposes, profits are reported "net" -- that is,
losses have been subtracted from profits. A comparison between these
two sets of figures for profits permits a calculation of the amount
of the losses that are carried to the budget. The first figures that
became available on the "net" basis were those appearing in a book by
Finance Minister Zverev in 1958 in connection with a discussion of
national income, where the profit figures would have been "net."
"Profits of state and cooperative organizations" were reported there
as 12.58 billion rubles for 1955 and 19.20 billion rubles for the
1958 plan. III/ Subsequently the handbook for 1959 repeated the 12.58
billion ruble figure, breaking it down to show the profits of state
enterprises and organizations as 11.31 billion rubles.1?Ey Total
profits of state enterprise in 1955 can be calculated from data in
the 1956 budget speech/22/ as having been 12.37 billion rubles, indi-
cating that the budget figure in this case fails to take into consid-
eration losses charged to the budget in the amount of 1.06 billion
rubles. There is reason to believe that these losses represent the
losses on industry (and construction) only and that the subsidies
paid to state farms are not included. Losses in 1956 are assumed to
have been the same as those in 1955.
Until the breakup of the industrial ministries by the reorganiza-
tion of 1957, losses in industry charged to the budget represented only
the net losses of branches of industry. By 1956 the only two branches
of industry making net losses were timber and coal. 22/ In 1957,
prices of timber were increased to reduce or wipe out the net loss in
the timber industry. 22/ On the basis of the fact that the plan for
union-republic industry for 1958 (union-republic industry now repre-
senting 94 percent of state industry) 22/ showed no losses for a
branch of industry other than 0.56 billion rubles for coal, 21/ losses
charged to the budget in 1957 are assumed to be 0.56 billion rubles.
Beginning in 1958, however, losses charged to the budget rose
again, as the budget began to be charged for the aggregate of the
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planned losses of individual enterprises rather than the aggregate of
the net losses of the now defunct ministries. A figure for the losses
planned to be charged to the budget in 1958 on this basis can be cal-
culated by adding to planned state enterprise profits of 18.84 billion
rubles 21V the planned cooperative enterprises' profits of 1.45 billion
rubles 22/ and comparing the result with the planned net figure for the
"profits of state and cooperative organizations" of 19.20 billion
rubles already mentioned above. This comparison indicates that losses
planned to be charged to the budget in 1958 were 1.09 billion rubles.
It is known that actual losses in the planned-loss enterprises were
greater in 1958 than the planned losses, although not so much greater
as in previous years. .5_?_/ This suggests that actual losses charged to
the budget in 1958 could have been as much as 1.2 billion rubles.
There is no firm basis for estimating losses charged to the budget
in 1959, primarily because of some doubts as to the exact coverage of
the profit figures for the years after 1955 as they appear in the
handbook for 1959. 52/ A working estimate of 1.80 billion rubles has
been used, the increase above 1958 representing largely the greater
number of individual enterprise losses being charged to the budget
rather than being netted at the level of the councils of national
economy.
All of these figures are set forth in Table 10* and are used there
to calculate a series from 1956 through 1959 for the FNE Industry and
Construction Residual. A series for the Budgetary Expenditure Residual
also is shown in the same table. In 1959, Reserve Funds of 2.12 bil-
lion rubles, set up in the plan (see Table 8**), apparently were used
to finance the increase in actual above plan in FNE Industry and Con-
struction of 1.48 billion rubles and perhaps partly to finance the in-
crease in actual above plan in the Budgetary Expenditure Residual of
0.56 billion rubles (see Table 10). In 1960, Reserve Funds of 2.76
billion rubles, set up in the plan (see Table 8), were not used to any
significant extent to finance actual expenditures in excess of the
plan in FNE Industry and Construction for that year, because actual
expenditures exceeded the plan by only 0.41 billion rubles. In the
Budgetary Expenditure Residual, however, actual expenditures exceed
the plan by 2.54 billion rubles. Hence it may be that some type of
expenditure, which up through 1959 was financed from Reserve Funds and
charged to FNE and apparently to FNE Industry and Construction, was in
1960 charged to the Budgetary Expenditure Residual. This conjecture
would be somewhat confirmed if the actual expenditures in 1960 for the
FNE Industry and Construction Residual were to show a decline from the
preceding year.
* Table 10 follows on p. 27.
** P. 18, above.
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A series for the FNE Unidentified Residual from 1956 through the
1961 plan is shown in Table 11.* For 1956, there is available for
this series a firm actual figure of 1.64 billion rubles. 2!),/ This
figure is known to include the cost of geological prospecting, of an
unidentifiable but small amount, and is presumed to include payment
for the cost of purchasing the annual production of gold for the State
Material Reserves. An annual production of gold of 110 metric tons,
paid for on the basis of 2.5 rubles a gram, would represent an annual
charge to the budget of 0.275 billion rubles.
Beyond 1956, working estimates for the amount of the FNE Uniden-
tified Residual can be made only for plan amounts. These show a sharp
rise, beginning in 1959. The fact that this rise is matched by a
similar rise in the Budgetary Revenue Residual, plan (shown in Table 10
for the purpose of comparison), suggests the possibility of this in-
crease being the result of some unidentified "bookkeeping" entries to
both sides of the budget.
If the rise that is matched by the rise in the Budgetary Revenue
Residual is excluded from the FNE Unidentified Residual, then the
three expenditure residuals (the FNE Industry and Construction Resid-
ual, the Budgetary Expenditure Residual, and the FNE Unidentified
Residual) taken together show a rather steady, straight-line rise.
* Table 11 follows on p. 28.
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Table 10
Residuals in the State Budget in the USSR
(FNE Industry and Construction Residual and Budgetary Expenditure Residual)
1956-61
Billion Current Rubles
1956 1957 1958 1959 1960 1961
Plan Actual Plan Actual Plan Actual Plan Actual Plan Actual Plan
FNE Industry and Construction 21
Less:
? Investment 2/
Increase in working capital 21
11.00
12.82
8.00
(0.18)
11.84
13.08
(8.52)
(0.32)
12.90
(1)+.57) 12/
(9.18)
(0.31)
14.53
(16.01)
(9.67)
(0.17)
15.19
15.6
N.A.
N.A.
16.1
Design Bureaus pi
0.50
0.52
0.56
0.60
N.A.
Research and Development 21/
(0.50)
(0.40)
(0.30)
(0.20)
N.A.
Losses paid from the budget 21.1
(1.06)
(0.56)
(1.20)
(1.80)
N.A.
Equals:
FNE Industry and Construction Residual
(2.58)
(2.76)
(3.02)
(3.57)
N.A.
Budgetary Expenditure Residual 11/
(2.68)
2.82
3.09
(2.89)
(2.98)
2.89
(3.17)
3.73
(2.88)
(5.42)
(2.755)
a. From Table 1, p. 5, above, with estimates added as indicated in the text.
b. Figures in parentheses are estimates.
c.
1956 through 1959, estimated as indicated in the text.
d. Estimated as indicated in the text.
e. Calculated as the difference between capital investment figures including and excluding these costs. ,L)/
f. From Table 8, p. 18, above.
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Table 11
Residuals in the State Budget in the USSR
(FEE Unidentified Residual and Budgetary Revenue Residual)
1956-61
Billion Current Rubles
1956 1957 1958 1959 1960 1961
Plan Actual Plan Actual Plan Actual Plan Actual Plan Actual Plan
FEE Unidentified Residual
(Plan) 2/ (1.59) 2/ 1.64 2/ (1.9)
Budgetary Revenue Residual
(Plan) 1/ N.A. 7.28
(1.88) (5.33)
8.29 (11.38)
(5.93) (7.15)
(12.75) 13.00
a. From Table 1, p. 5, above.
b. Figures in parentheses are estimates.
c. Shown here because it is the only firm figure available for this residual.
d. From Table 9, p. 19, above.
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APPENDIX C
BUDGETS OF THE UNION-REPUBLICS OF THE USSR
Expenditures channeled through republic and local budgets in 1961
(thus appearing in the union-republic state budgets rather than in the
All-Union budget) will total 42.772 billion rubles (see Table 12*),
representing 55 percent of the total expenditures of the consolidated
budget, 77.5 billion rubles (see Table 8**). The share of expenditures
passing through the republic and local budgets has been increasing ever
since 1955, when a large number of industrial, agricultural, construc-
tion, trade, and other organizations were transferred from union con-
trol to republic control. This trend was furthered by the reorganiza-
tion in 1957 that put the bulk of industry under the jurisdiction of
the councils of national economy, which in turn are under republic
jurisdiction.
The union-republic state budgets for the 1960 plan and for the
1961 plan are shown in Table 12. Union-republic outlays are covered
by the republic's retention of certain portions of revenues collected
within its territory. In general, republics retain all income from
the bachelor tax, the collective farm income tax, the agricultural tax,
forest revenue, and 50 percent of income taxes and state loan revenues.
In the case of profit deductions, enterprises subordinate to republics
pay their profit deductions to the republic, except that 20 percent of
the plan profit of enterprises under the councils of national economy
goes to the All-Union budget. For the turnover tax the share retained
is fixed year by year in the annual plan, to permit the republics just
to cover their expenditures without any surplus. In the 1961 plan,
Kazakh SSR and Turkmen SSR, in addition to receiving 100 percent of the
turnover tax collected within their territory, will receive further
subsidies "for the development of branches of the republic's economy
which are of national importance" of 929.4 million rubles and 57.7 mil-
lion rubles, respectively.
Expenditures from the union-republic state budgets for Financing
the National Economy in 1961 will be 21.2 billion rubles, to be sup-
plemented by 39.7 billion rubles from the own resources of the enter-
prises and economic organizations of the republics. Expenditures from
the union-republic state budgets for Social-Cultural Measures will be
19 billion rubles. ..2/
* Table 12 follows on p. 30.
** P. 18, above.
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Table 12
State Budgets of the Union-Republics of the USSR 2/
1960 and 1961 Plans
Billion Current Rubles
Republic
Confirmed
Plan
1960
Proposed
Plan
1961
RSFSR
23.19
25.292
Ukrainian SSR
6.98
7.456
Belorussian SSR
1.11
1.279
Uzbek SSR
1.02
1.145
Kazakh SSR
2.52
3.092
Georgian SSR
0.64
0.718
Azerbaydzhan SSR
0.61
0.669
Lithuanian SSR
0.46
0.545
Moldavian SSR
0.30
0.328
Latvian SSR
0.42
0.474
Kirgiz SSR
0.34
0.395
Tadzhik SSR
0.29
0.331
Armenian SSR
0.32
0.366
Turkmen SSR
0.31
0.362
Estonian SSR
0.29
0.320
Total
38.79 12/
42.772 Ej
a. L/
b. Because of rounding, components may not add to the total
shown.
c. The total is derived as the sum of rounded components.
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