USSR: GROSS NATIONAL PRODUCT ACCOUNTS, 1970

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000500110017-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 91
• Document Creation Date: December 15, 2016
• Document Release Date: August 18, 2003
• Sequence Number: 17
• Publication Date: November 1, 1975
• Content Type: REPORT

STAT
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Research mid.
USSR: Gross National Product Accounts,
1970
A (ER) 75-76
November 1975
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USSR: Gross National Product Accounts, 1970
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Page
Summitry .......................................................... I
1. Introduction ................................................. 2
II. The Statistical Results ........................................ 2
III, Incomes and Outlays in Established Prices for 1970 .............. 13
A. The Accounting System .................................... 13
13. Boundaries. ...., ......................................... 13
C. The Income and Outlay Accounts ........................... 14
IV. GNP in Established Prices .................................... 15
A. By End Use ............................................... 15
B. By Sector of Origin ........................................ 15
C. Reliability and Accuracy ................................... 15
D. Comparison with Official Soviet National Income ............ 17
E. Comparability with Becker's 1958-64 Accounts............... 19
F. Comparison with US GNP-Coverage and Classification...... 19
V. The Factor Cost Adjustment .................................. 20
VI. Directions of Future Research ................................. 20
Page
A. Sources for Table 1. USSR: Household Incomes, 1970. . ............ 23
B. Sources for Table 2. USSR: Household Outlays, 1970 ............... 39
C. Sources for Table 3. USSR: Public Sector Incomes, 1970 ............ 45
D. Sources for Table 4. USSR: Public Sector Outlays, 1970..... .. .. . . .. 51
E. Sources for Table 6. USSR: Gross National Product in Established
Prices, by End Use, 1970......... .......................... 61
F. Sources for Table 7. USSR: Gross National Product in Established
Prices, by Sector of Origin, 1970 ................................ 65
G. Sources for Table 8. USSR: Gross National Product at Factor Cost,
by Sector of Origin, 1970 ...................................... 79
H. Sources for Table 9. USSR: Gross National Product at Factor Cost,
by End Use, 1970 ............................................. 89
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1. USSR: Household Incomes, 1970 ..................................
3
2. USSR: Household Outlays, 1970 ..................................
4
3.
USSR: Public Sector Incomes, 1970 ...............................
5
4.
USSR: Public Sector Outlays, 1970 ................................
6
5.
USSR: Gross National Product Account, 1970 ......................
7
6.
USSR: Gross National 'Product in Established Prices, by End Use, 1970.
8
7.
USSR: Gross National Product in Established Prices, by Sector of
Origin, 1970 ...................................................
9
8. USSR: Gross National Product at Factor Cost, by Sector of Origin,
1970 .........................................................
10
9. USSR: Gross National Product at Factor Cost, by End Use, 1970 ......
11
Page
A-1. USSR: Disposition of Output of Commodities Included in Farni
Household Consumption-in-Kind, 1970 .........................
27
A-2. USSR: Valuation of Farm Household Consumption-in-Kind, 1970...
32
A-3. USSR: Meat Production-Slaughter Weight, Live Weight-by Type
and by Producer, 1970 ......................................
38
C-1. USSR: Subsidies on Government Purchases of Agricultural Products,
1969-71 ....................................................
49
D-1. USSR: Valuation of the Net Addition to Livestock Inventories,
1970 .......................................................
57
D-2.
USSR: Public Sector Inventories, 1969-70 .......................
58
D-3.
USSR: Collective Farm Working Capital, 1968-70 .. ............
59
F-1.
USSR: Gross National Product Originating in Industry, in Established
Prices, 1970 .................................................
69
F-2. USSR: Wages and Social Insurance Deductions in Branches of
Industry, 1970 ..............................................
72
F-3.
USSR: Fixed Capital in Branches of Industry, 1970 ..............
74
F-4.
USSR: Gross National Product Originating in Services, in Established
Prices, 1970 ................................................
75
G-1. USSR: Derivation of Net Working Capital of State and Cooperative
Enterprises and Organizations, 1970 ...........................
83
G-2. USSR: Gross National Product Originating in Industry, at Factor
Cost, 1970... ............................................
85
G-3. USSR: Gross National Product Originating in Services, at Factor
Cost, 1970 ..................................................
86
II-1. USSR: Factor Cost Adjustment, by Originating Sector, 1970 ......
92
iv
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USSR: GROSS NATIONAL PRODUCT ACCOUNTS, 1970 '
1. Calculated according to US national income
accounting standards, the gross national product
(GN1') of the USSR in 1970 as 381 billion rubles
in established prices and 340 billion rubles at
factor cost.
2. The valuation in established prices uses official
Soviet prices; the valuation at factor cost adjusts
these prices up or down to take account of the
actual resource cost involved in production. Most
of the adjustments take the form of subtracting
taxes, adding subsidies, or imputing costs of pro?-
ductive factors not adequately recognized in Soviet
accounting procedures. Because taxes, subsidies,
and imputations have n.n uneven effect on the
prices of different kinds of economic activity, the
distribution of Soviet GNP by sector of origin differs
widely depending on the method of valuation.
3. The distribution of Soviet GNI' by end use
also differs depending on which price basis is used,
but, not nearly as much.
4. A great deal of effort has gone into unearthing,
adjusting, and piecing together Soviet economic
data in order to construct the GNP accounts pre-
sented in this publication. Nonetheless, this detailed
work can only partially compensate for the deficien-
cies in the official Soviet data. In particular, defense
expenditures cannot be unambiguously identified
in the "other public sector expenditures," and
certain defense activity lies buried in investment
and consumption accounts.
In Established Prices a At Factor Cost a
Gross National Product Billion Rubles Percent Billion Rubles Percent
By sector of origin ....................... :180.7 100.0 340.2 100.0
Industry ............................. 157.1 41.3 07.5 28.7
Construction .......................... 25.4 6.7 30.1 8.8
Agriculture ........................... 70.5 18.5 09.4 2(1.4
Transportation ........................ 28.8 7.0 2(3.5 7.8
Communications ...................... 2.8 0.7 2.0 0.8
Trade ................................ 16.7 4.4 20.7 13.1
Services .............................. 40.(3 10.7 74.7 22.0
Military personnel ..................... 5.3 I .4 0.6 1 .1)
Other and unallocated ................. 33.0 0.8 12.3 3.6
By end use ............................. 380.7 100.0 340.2 100.0
Consumption ......................... 219.6 57.7 194.6 57.2
Goods .............................. 1137.4 .14.0 115.6 34.0
Services ............................ 52.3 13.7 711.0 23.2
Investment ........................... 120.1 31.6 106.1 31.2
New fixed investment ................ 80.4 22.7 77.0 22.0
Capital repair ....................... 18.0 4.1) 14.9 4.4
Inventories ......................... 15.2 .1.0 14.2 4.2
Other public sector expenditures......... 40.9 10.8 39.6 11.7
General administration and iniscellane-
............. 10.0 2.6 8.7 2.6
ous services
..........
Research and development (civilian and
military) .........................
Outlays not elsewhere classified (n.e.o.)-
tlefense, net exports, and unidentified
outlays-and statistical discrepancy. 21.0 5.5 109.1 5.6
a Because of rounding, components may not add to the totals shown. ---- -- - -
Note: This publication was prepared by the Office of Economic Research, Central Intelligence Agency. Questions on the
publication should be addressed to the Director of Economic Research, Central Intelligence Agency, Washington, D.C. 20505.
1
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5. The Office of Economic Research (OER) of
CIA is called upon to make annual estimates of
Soviet GNP in rubles, its rate of growth, its size
relative to US GNP, and its allocation among
consumption, investment, defense, and other end
uses. The statistical weights used in these estimates
are derived from detailed accounts of GNP by
sector of origin and by end use constructed by
OEM, analysts for particular base years. Previous
base years were 1960 and 1968, with the accounts
for 1968 being considerably less detailed than those
for 1960. Because it major price reform took place
in 1967, followed by additional changes in 1969
(the first overall --rice reforms since 1955), we have
needed it detailed ,et of national accounts for some
year after 1969. The year 1970, the final year of the
Eighth Five-Year Plan, was the most recent year
for which data were relatively plentiful.
6. The Soviet government does not publish it set
of national accounts comparable with those of
Western countries. Rather, it publishes national
income data that are geared to its own definitions
of economic phenomena and its own political re-
quirements. Accordingly, official Soviet national
income data have a number of major deficiencies:
(1) they exclude most services-for example, it
substantial portion of transportation, communica-
tion, and government services; (2) defense expend-
itures are huried in accumulation and consumption;
and (3) detailed methodology and subcomponents
are not published. In view of these problems, OER
has followed the practice of US academic specialists
in the field and has constructed GNP accounts
that are independent of the Soviet national ag-
gregates, using detailed but fragmentary data on
economic activities published by the Soviet govern-
ment, various Soviet economists, and other
reputable Soviet writers.
7. This report presents the GNP of the USSR in
1970 in four ways----by sector of origin and by end
use, each valued in established prices and at factor
cost. The established prices are (1) prices fixed by
the Soviet government, (2) officially approved
market prices, or (3) costs of government services
its reflected in official statistical data. Factor cost
prices are established prices adjusted to better
reflect the full resource cost of capital and labor;
for example, government subsidies must be added
to the price of it commodity to reflect its full
resource cost.
8. The ensuing sections present the statistical
results and describe the accounting system and
valuation for the 1970 accounts. Detailed documen-
tation of the derivation of the numbers is given in
the appendixes.
II. The Statistical Results
9. The Soviet GNP in established prices is based
on two sets of income and outlay tables, namely,
the incomes and outlays of households (Tables I
and 2) and of the public sector (Tables 3 and 4).
Table 5 shows gross national product as derived
from the information in Tables 1-4. Table 6 shows
GNP by end use, and 'f'able 7, GNP by sector of
origin. Tables 8 and 9 present GNP at factor cost
by sector of origin and by end use.
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USSR: Household Incomes
1970
1. State wages and salaries ..................................... 1:32.059
a. Worker and employee wage and salary bill .................. 132.032
b. Profits distributed to consumer cooperative members......... 0.027
2. Net income of households from agriculture ..................... 41.577
a. Money wage payments by collective farms .................. 14.453
(1) Payments to collective farm members ................... 14.040
(2) Payments to hired workers ............................. 0.413
b. Net income from sales of farm products ..................... 8.264
c. Net farm income-in-kind .................................. 18.860
(1) Consumption-in-kind .................................. 18.347
(2) Investment-in-kind ................................... 0.513
3. Income of the armed forces .................................. 5.320
a. Military pity ............................................. 3.320
b. Military subsistence ...................................... 2.000
4. Other money income currently earned and statistical discrepancy.. 13.708
a. Private money income currently earned ..................... 2.669
b. Unidentified money income and statistical discrepancy........ 11.039
5. Imputed net rent ........................................... 1.080
6. Imputed value of owner-supplied building services .............. 0.880
7. Total income currently earned ................................ 194.624
8. Transfer receipts ............................................ 24.256
a. Pensions and allowances................................... 21.955
h. Stipends ................................................ 1.300
c. Interest income .......................................... 1.035
d. Net new bank loans to households .......................... -0.034
9. Total income ............................................... 218.880
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USSR: Household Outlays'
1970
1. Retail sales of goods for consumption .......................... 147.015
a. State, cooperative, and commission sales .................... 143.180
b. Collective farm ex-village market sales ...................... 3.835
2. Consumer services .......................................... 25.932
a. Trade union and other dues ............................... 2.092
b. Housing ................................................. 3.429
(1) Cash rents ........................................... 1.091
(2) Imputed net rent ..................................... 1.080
(3) Repair .............................................. 1.258
c. Other services ............................................ 20.411
(1) Utilities ............................................. 3.478
(2) Transportation ....................................... 7.200
(3) Communications ...................................... 1.200
(4) Repair and personal care .............................. 4.674
(5) Recreation and culture ................................ 2.647
(6) Education ........................................... 1.064
(7) Health .............................................. 0.148
3. Consumption-in-kind ........................................ 20.347
a. Farm consumption-in-kind ................................ 18.347
b. Military subsistence ...................................... 2.000
4. Total outlays for consumption ................................ 193.294
5. Investment ................................................ 2.542
a. Private housing construction ............................... 2.029
b. Farm investment-in-kind .................................. 0.513
6. Total outlays for consumption and investment .................. 195.836
7. Transfer outlays ............................................ 23.044
a. Net savings .............................................. 9.720
b. Direct taxes ............................................. 12.737
c. Other payments to the state ............................... 0.587
8. Total outlays ............................................... 218.880
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USSR: Public Sector Incomes 1
1970
1. Net income retained by organizations ......................... 34.782
it. Retained income of collective farms ......................... 7.186
b. Retained profits of state enterprises. . . . . ,.. , ? .. , ....... , . 26.481
c. Retained profits of consumer cooperatives ................... 0. 794
d. Retained profits of other organizations ...................... 0.321
2. Charges to economic enterprises for special funds ................ 12.414
a. Social insurance and social security ................ ...... . . 9.436
b. Education; research ...................................... 2.978
3. Taxes and other payments to the budget ....................... 126.517
a. Tax on income of collective farms .......................... 0.666
b. Tax on income of consumer cooperatives and other organizations. 0.11569
c. Deductions from profits of state enterprises .................. 53.110
d. Turnover tax ............................................ 49.380
e. Miscellaneous charges ..................................... 22.792
4. Allowance for subsidized losses, n.e.c ......... . ................ -19.454
5. Consolidated total charges against current product, net of deprecia-
tion ..................................................... 154.259
6. Depreciation ............................................... 31.827
7. Consolidated total charges against current product .............. 186.086
8. Transfer receipts ............................................. 23.044
a. Net livings of households ................................. 9.720
b. Direct taxes ............................................. 12.737
c. Other payments to the state ............................... 0.587
9. Consolidated net income ..................................... 209.130
5
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USSR: Public Sector Outlays 1
1970
1. Communal services .......................................... 20.351
a. Education ............................................... 15.034
b. Art ..................................................... 0.756
c. Health .................................................. 10.016
d. Physical culture .......................................... 0.545
2. General administrative and miscellaneous services ............... 9.971
a. General agricultural programs .............................. 1.130
b. Forest economy ........................................... 0.822
c. State administration (apparal) ............................. 3.952
d. Municipal and related services ............................. 4.067
(1) Culture .............................................. 1.379
(2) Municipal services .................................... 0.712
(3) Civilian police ........................................ 1.562
(4) Administrative organs of social organizations ............. 0.414
3. Gross investment ........................................... 117.537
a. Fixed capital ............................................ 102.433
b. Inventories .............................................. 15.154
4. Research and development (civilian and military) ............... 9.927
5. Outlays n.e.c. (defense, net exports, and unidentified outlays) and
statistical discrepancy ..................................... 21.038
6. Consolidated total value of goods and services, exclusive of sales to
households ............................................... 184.874
7. :Cransfer outlays ............................................ 24.256
a. Pensions and allowances ................................... 21.955
b. Stipends ................................................ 1.300
c. Interest payments to households ........................... 1.035
d. Net new bank loans to households .......................... -0.034
8. Consolidated total outlays ................................... 209.130
6
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USSR: Gross National Product Account 1
1970
1 ncontes
1. Total income of households currently earned ................. 194. 624
2. Consolidated charges of government, social, and economic organi-
zations against current product, not of depreciation ......... 154.259
3. Net national product ...................................... 398.883
4. Depreciation ............................................. 31.827
5. Gross national product .................................... 380.710
Outlays
1. Total outlays of households for consumption and inve., ,ment... 195.836
2. Consolidated total value of goods and services disposed of by
government, social, and economic crganizations, exclusive of
sales to households ...................................... 184.874
3. Gross national product .................................... 380.710
Incomes from 'T'ables I and 3; outlays from 'T'ables 2 and 1.
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USSR: Gross National Product in Established Prices by End Use 1
1970
1. Consumption ............................................... 219.645
it. Goods .................................................. 167.362
(1) Food ................................................ 107.667
(2) Soft goods ........................................... 45.720
(3) Durables ............................................ 13.975
b. Services ................................................. 52.283
(1) Trade union and other dues ............................ 2.092
(2) Housing ............................................. 3.429
(3) Utilities ............................................. 3.478
(4) Personal transportation ................................ 7.200
(5) Personal communications .............................. 1.200
(6) Repair and personal care .............................. 4.674
(7) Recreation, art, and physical culture .................... 3.948
(8) Education ........................................... 16.098
(9) Health .............................................. 10.164
2. Investment ................................................ 120.129
it. New fixed investment ..................................... 86.364
(1) Machinery and equipment ............................. 25.300
(2) Construction and other capital outlays .................. 57.009
(3) Net addition to livestock inventories ................... 4.055
b. Capital repair ............................................ 18.611
c. Inventories .............................................. 15.154
3. Other public sector expenditures .............................. 40.936
a. General administrative and miscellaneous services ............ 9.971
b. Research and development (civilian and military) ............ 9.927
c. Outlays n.e.c. (defense, net exports, and unidentified outlays)
and statistical discrepancy ............................... 21..038
4. Gross national product ...................................... 380.710
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III. Incomes and Outlays in Established Prices
for 19711
A. The Aceoiiniml/ Sylslcnt
I(1. The 011,11, accounting system for Soviet GNP
is similar to the system developed by Abram
Bergson and followed by RANI) Corporation re-
searcherS in it series of studies far 1949-66.)
Abraham Becker authored the most elaborate of
these studies, for 1958-64, and our procedures
follow his closely.
11. In brief, the accounting system encompasses
all economic activity within two sectors, the
houseliold'sector and the public sector. The public
sector is defined to include government, the pro-
ducing enterprises, and public organizations, such
as the Communist Party, trade unions, and volun-
tary associations. Since incomes and outlays must
be equal conceptually, the discrepancies in the. two
sectorial accounts provide it crude measure of the
incompleteness or uncertainty of the data.
12. The income and outlay accounts are ab-
breviated compared with standard Western na-
tional accounts. The consolidation of government
and producing enterprises and organizations into a
single sector sacrifices completeness and detail but
is consistent with Soviet organization and report-
ing. All major economic activities wherever per-
formed are planned or regulated by the govern-
ment; many economic reports combine the trans-
actions of the government and producing
enterprises. The government, moreover, does not
report many activities for which it has accounts.
Because of the accounting consolidation, transac-
tions between one part of the public sector and
another are not shown. These transactions would
be very illuminating if available: for example,
those between economic enterprises and govern-
ment or between banks and government.
13. The income and outlay tables are not
separated according to kind of transaction-that
is, the production, appropriation, and capital
t Abram Bergson and hams Ilevtnann, Jr., .Soviet National
Income and Product, 1940-48, Columbia University Press, New
York, 19514; Oleg Iloeffding and Nancy Nimitz, Soviet National
Income and Product, 191,9-1955, RAN 1) Corporation, I01-
2101, April 1951); Abram Bergson, The Real National I ncone of
Soviet Russia since 1928, Harvard University Press, Cambridge,
1901; Abraham S. Becker, Soviet National Income, 1958--1961,
National Accounts of the USSR in the Seven Year Plan Period,
University of California Press, Berkeley and Los Angeles, 1969;
and Sally Anderson, Soviet National Income, 196?1966, in
Established Prices, RAND Corporation, 111Nt-5705-PR, Sep-
tember 1968.
accounts are not estimated. 'l'liis elaboration of
the accounts would have been pursued if it would
have facilitated the use of additional available
information. ']'his does not seem to be the case.
So far as is known, all relevant published informa-
tion, with one exception, has been mobilized in
these accounts. The exception is it series of Soviet
input-output tables published in part for 1959,
1966, and 1972.2 Use of the input-output (1-0)
data would not require an elaboration of the
accounting system by type of transaction. Pri-
marily, the 1-0 tables would permit it more detailed
account of G 'N i' by sector of origin. Whether they
would lead to it more accurate calculation of GNP
and its major parts remains to be seen. The I-0
data are classified differently from the previously
published national economic data, and the difficult
job of identifying the differences and reconciling
the two is still in midlabyrinth.
B. Boundaries
14. The coverage of economic activity in these
accounts generally follows the practice of the
Bureau of Economic Analysis of the US Depart-
ment of Commerce. Government purchases of
goods and services other than by government
productive enterprises are included in final product.
In both the United States and the USSR these
consist of some or all outlays on health, education,
art, physical culture, defense, research and develop-
ment, investment, and government administration.
In the OER Soviet accounts government activities
are valued at cost, as are government services in
the US accounts.
15. The overall coverage of economic activities
depends on the boundary between final and inter-
mediate product. Differences between our Soviet
accounts and the US accounts arise particularly
in activities that are treated as enterprise costs in
the United States but, because of different account-
ing standards, as final product in the USSR-for
example, some research and development. In ad-
dition, the division of activities between govern-
ment and nongovernment is so different in the two
countries that serious problems of comparability
arise. (A more detailed discussion of the compara-
bility of the Soviet and US accounts is given in a
later section.)
16. The USSR is predominantly socialist. None-
theless, various private economic activities are
officially sanctioned, such as agriculture on private
2'1'h(! 1972 table has just been published (.January 1975) in
an incomplete form and has not yet been reconstructed by US
economists as have been the 1951) and 1966 tables.
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plots, marketing of the produce of private plots,
private home building (for use but not for sale),
and repair and personal services. In addition, it
great deal of illegal production goes on. Bootleg
production of alcoholic beverages is widespread,
and many examples of using state equipment and
materials for private production are cited in the
Soviet press. Much of this activity produces useful
services and fills interstices in the economy that
the official system cannot fill. Although we ex-
plicitly count only legal production of goods and
services (as do the US national income analysts),
some illegal incomes may be counted implicitly in
the statistical discrepancy for household incomes.
17. Finally, we attempt to follow US practice
regarding imputations and include in GNP: (1)
consumption-in-kind of home produced food, (2)
subsistence of personnel in the military forces, (3)
farm investment-in-kind, (4) owner-supplied labor
in private home construction, and (5) rental value
of owner-occupied housing.
C. The Income and Outlay Accounts
18. Household incomes in Table 1 include all
wages and salaries, income from sales of farm
product, imputed incomes, and transfer receipts.
Although most incomes are reported by the govern-
ment, imputed and private incomes must be
estimated, along with military pay.'
19. The largest part of household outlays in
Table 2 is represented by retail sales, which are
officially reported. Stat.;-provided serviced are not,
in general, reported and must be estimated piece-
meal. Private services are also estimated, as are
imputed values, such as rent of private homes,
consumption-in-kind, and investment-in-kind.
20. Household outlays (including transfers) are
accepted as the control total for household incomes.
This generates a residual or statistical discrepancy
of unidentified money incomes. The significance of
this discrepancy is discussed below.
21. Public sector incomes is a more complex
account, consisting of the unduplicated incomes of
producing enterprises, public organizations, and
the various levels of government. These incomes
are mainly (1) the net income retained by enter-
prises and organizations after taxes and (2) the
taxes and revenues of government. To these are
added expenditures of enterprises that are charged
as costs but that really represent an allocation of
incomes for taxes or final product expenditures
on social insurance' and social security, education,
and research. Finally, subsidies to ttroducers paid
out of. government revenues are deducted, and
depreciation and transfer receipts are added.
22. The total of taxes and other identified pay-
ments to the budget in Table 3 does not equal the
total receipts of government. The reported state
budget. includes a large unidentified category of
revenues' about which little is known. We have no
way of determining how much of this residual
income originates in the transfer of assets--such
as confiscation of property and sales of reserves
(gross or net)--or whether receipts from foreign
trade are ,handled on a, gross or net basis. The
procedure used here follows Becker in assuming
that three-quarters of the unidentified revenues
should be charged against the current product of
the public-sector. The remainder is considered as
receipts that are netted out of public sector outlays
(for example, net additions to state reserves or
unspent funds from the 1969 budget balanced
against 1970 funds transferred to the 1971 budget),
or as fictitious in some son le. In addition, we wish
to exclude any accounting profits accruing from
foreign trade operations so that GNP will be an
approximate measure of the level of productive
activity. (See Appendix C, item 3, e.) Accepting
three-quarters as the dividing line is a crucial
assumption, since total public sector charges against
current product (Table 3) are part of the control
total for GNP-GNP as the sum of household
incomes and public sector incomes (Table 5).
23. Public sector outlays include all purchases of
final goods and services by government, enterprises,
and organizations. These are communal services
provided primarily by government to households,
administration and other government services,
investment, research and development, outlays
n.e.c., and transfer outlays. Investment outlays
originally included in services, administration, and
research and development have been netted out.
They are included in the consolidated investment
entry. All explicit public sector expenditures other
than investment are current expenditures.
24. Outlays n.e.c. are the residual between ex-
plicit public sector outlays and the total of public
sector incomes. Conceptually, the residual includes
those defense expenditures not included in other
expenditure accounts, net exports at domestic
prices, net expenditures on strategic reserves, other
14
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unidentified outlays, and I. i?71ttistical discrepancy.
The major components are a, t.ivitics about which
the Soviet government publishes incomplete infor-
mation or none at all.
28. Both the statistical discrepancy in household
incomes and miscellaneous charges from budget
revenues have been left in an unallocated row. 't'heir
treatment in deriving GN.l' weights is discussed in
the section on factor cost adjustment below.
A. By End Use
25. GNP is derived from the income and outlay
accounts as shown in Table 5. Total incomes of
households and the public sector (net of transfers)
are equal to total outlays of households and the
public sector (net of transfers)-and to GNP. The
breakdown of GNP by end use in Table 6 is taken
from the outlay tables; outlays of households for
services and for investment are merged with cor-
responding outlays by the public sector. Consump-
tion of goods is the sum of retail sales and
consumption-in-kind, including military subsist-
ence. Expenditures for defense are included in
research and development as well as in outlays
n.e.c. Outlays for military purposes may also be
included in other end-use aggregates-for example,
investment, education, and health.
B. By Sector of Origin
26. The breakdown of GNP into value added by
sector of origin in established prices is shown in
Table 7. The components are wages, other and
imputed income, social insurance, profits, deprecia-
tion, and indirect taxes, less subsidies. The compo-
nent totals are taken from the household and public
sector income accounts, Tables 1 and 3.
27. The breakdown of the components of value
added by sector requires a painstaking examination
and rearrangement of Soviet data. In general, data
for distributing state wages, social insurance,
profits, depreciation, and indirect taxes among
industry, construction, agriculture, transportation,
communications, other branches, and trade-with
services as a residual-are available from Soviet
sources3 Other and imputed income, incomes of
military personnel, and subsidies were estimated,
sometimes from very indirc t evidence. The assign-
ment of subsidies on agricultural products entirely
to industry involves some overstatement, since a
(relatively small) portion of these products passes
directly into the trade net without industrial
processing.
a A further breakdown of value added into industrial branches
and individual services is given in Appendix F, Tables F-I
and F-4.
C. Reliability and Accuracy
29. Efforts to estimate Soviet GNP are flawed
by the same uncertainties that caused the studies
to be undertaken in the first place. The difficulties
include (1) secrecy regarding defense and related
fields, penal populations and activities, strategic
reserves including gold, and balance of payments;
(2) inadequate reporting of services of all kinds,
private activities, and many details of farm activi-
ties; (3) confusion between intermediate and final
outputs; (4) frequent reporting in constant prices
without corresponding current price values; and
(5) a pervasive tendency to withhold detailed
definitions and explanations of methodological
procedures.
30. We assume from the outset that the flows
reported by the Soviet government are essentially
complete within the framework of Soviet account-
ing. That is, although some expenditures may be
hidden in a budget residual or otherwise disguised
or mislabeled, they are not omitted entirely. The
outright omission of expenditures would require
that some source of funds-perhaps enterprise
profits-be correspondingly understated. This
would amount to the "double set of accounts"
that Westerners have speculated about for some
years. Although such omissions cannot be ruled out,
there is no evidence that they exist. In contrast,
we assume that there is room for concealment of
substantial amounts in the many unidentified (and
identified) funds already included in our accounts.
31. In spite of these difficulties and uncertainties
the GNP total in this publication seems plausible
and accurate enough for most analytical purposes.
The discussion below suggests that the GNP figure
reflects errors in the order of billions of rubles,
rather than tens of billions. In comparison with a
total GNP of 381 billion rubles, this degree of error
is not serious. It is certainly a much smaller problem
than the difficulties in identifying and measuring
growth in real Soviet economic activity and in
making comparisons with other countries possessing
different socioeconomic systems. The unknowns
and uncertainties have a particularly serious effect
on the analysis of the defense component of end use.
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32. The accuracy of the estimated G N 1' depends defensible- an implied range of - 7 to + 4 billion
on the control totals for.incornes and outlays. These rubles COutpti'ed With the ('stimate. The iiiIowaLI)CC
are taken from household outlays and public sector for subsidized losses includes an estimate for hous-
incornes. Household outlays appeal, to be nearly ing subsidies based on very indirect evidence. The
complete, with the consumption-in-kind estimates major subsidy for meat and milk products, although
resting or) reasonably good data. The estimates of not announced, is implicit in Soviet data. Subsidies
nonagricultural private activity are weaker. These for agricultural inputs, the press, and tuts were
include estimates of private home construction,
repair, and services (based on information reported
or estimated by Soviet writers) and estimates of
private health and education services (judged to be
1'%, of the wage bill for the corresponding state
services). The estimates may be too small. Many
other kinds of private activities are referred to in
the Soviet press; for the roost part they are illegal,
such its pilfering or the use of private cars for hire,
and probably not very large. If private incomes are
understated, outlays also are. As an offset, retail
trade includes commission sales of secondhand
goods, and transportation and recreation include it
part of business travel expense. (This overstatement
is perhaps not much worse than it is in US accounts.)
33. The statistical discrepancy between explicit
household income: and total household outlays is
11 billion rubles, or 51%, of total outlays. Becker's
accounts for 1958-64 showed discrepancies ranging
from 5Y2%) to 10%.4 The 1970 discrepancy im-
plicitly covers a long list of incomes that could, not
be estimated, such as prisoners' wages These
incomes are individually minor but collectively
may account for a substantial part of the dis-
crepancy. This suggests that if outlays are over-
stated, the magnitude of the overstatement is not
disturbingly large. The same judgment applies to
the personal consumption portion of GNP by end
use, which comes from the household outlays table.
34. The public sector total for incomes and
outlays is more uncertain. Most of the incomes are
reported, and the accounting procedures are reason-
ably clear. Thus, the figures for retained incomes,
major tax revenues, depreciation, and social in-
surance and social security appear to be acceptable.
But enterprise charges for education and research
and miscellaneous charges in budget revenues
involve large margins of error. The former is not
reported, and the estimate could conceivably err
by 1 billion rubles. More important, miscellaneous
charges were estimated to include three-quarters of
unidentified budget revenues from the socialized
sector. One-half or nine-tenths would perhaps be
I Becker, op. cit., p. 19.
o See Appendix A, item ?1, b.
pieced together from fragmentary data. Although
there may be other subsidies that we have failed to
detect, it is unlikely that these could he large. On
balance, however, the public incomes total of 209
billion rubles does not seem to be grossly wrong.
35. On the public outlays side, communal serv-
ices and research and development seem to be
properly accounted for in Soviet accounting terms.
Conversely, the items under general administrative
and miscellaneous services are not announced
budget categories. They are estimated from employ-
ment and wage statistics plus an allowance for
materials expenditures. They are assumed to be
funded ? 'ndcr the budget categories "financing the
national economy" and "social-cultural measures,"
as well its in the provision for administration (1.7
billion rubles). The small item for administrative
organs of public organizations (such as trade
unions and the Communist Party) is paid for by
membership dues paid by households. Total public
outlays should also include defense expenditures,
expenses of militarized security organizations, net
foreign investment, and changes in strategic
reserves. None of these are reported. Finally, in-
vestment may include some funding of defense
durable goods and defense construction.
36. Given these uncertainties in outlays, the
public sector incomes total is accepted as the total
for outlays. In an attempt to test the reasonableness
of using public sector incomes as a control total, the
outlays n.e.c. component of the public sector, out-
lays in Table 4 can be compared with estimates of
the entry's possible components. Total outlays
n.e.c. are 21 billion rubles. Net exports of goods in
domestic prices can be roughly estimated at a
minus 6 billion rubles from estimated conversion
ratios for exports and imports.! This leaves 27
billion rubles to cover (1) the part of announced
budget expenditures for defense of 17.9 billion
ruble., (as well as undisclosed defense spending)
that is not covered in other expenditure accounts,
tl Barry L. Kostinskv and Vladimir U. 'Trend, Draft Version
of i'orciyn Trade !'ricers in the Sorid Union: Exports and
Imports in the 1066 input-Ontp,d Table, forthcoming publica-
tion of US Department of Commerce, Bureau of Economic
Analysis, Foreign Economic Reports, no. 8.
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 (2) ot-tltt l,~t~iQKt ~t~TiQi~r ~~,~3~Q)~C ~LOt~,t c~~1 o~lA- ~vl$,Lq
tT P?RPRI MA1,1P0c1tirP inco-uc is the
1 billion rubles, and (3) changes in strategic reserves.
37. Because 1070 was it good harvest year (and
1069 was It poor year), net additions to grain
reserves were presumably positive, however, I
billion rubles would cover 10 million tons of grain.
All gold production might have been added to
reserves. ']'his would probably amount to no more
than 0.3 billion rubles. On the basis of these rough
calculations, some 26 billion rubles of the outlays
n.e.c. category would be left over for unstated
defense or other unidentified expenditures. Taking
into account possible errors in miscellaneous
revenues and in the education and research outlays
charged to enterprise costs---the total might be 8
billion rubles too high Or 5) billion rubles too low.
38. Although somewhat inconclusive as It test of
the public sector incomes total, the examination of
the outlays n.e.c. residual does not suggest that
the estimate of public sector incomes is too high or
Loo low. The uncertainty in household outlays --the
control total for household incomes-probably is
considerably less than the uncertainty in the esti-
mate of public sector incomes. Thus total GNP,
which is the suns of public sector and household
incomes (both net of transfers), does not seem to be
seriously in error.
39. The individual components of end use other
than consumption are less satisfactory. As noted
above, some defense expenditures may be included
in fixed investment. Furthermore, the breakdown
of research and development between civilian and
military cannot be deduced from financial flow data.
'10. The sector-of-origin components are based
on direct reporting for it very large part of their
total values. Agricultural income-in-kind is based
on reasonable estimates of prices and quantities.
Other and imputed nonagricultural and private
incomes and nonagricultural subsidies are less
soundly based, but errors in estimates would be
small in absolute terms and cannot seriously distort
the distribution of value added by sector. The chief
problems in the sector-of-origin breakdown lie in
the unallocated row consisting of unidentified
household incomes, miscellaneous budget charges,
and it small part of depreciation.
D. Comparison with Official Soviet National
Income
41. The OEIt estimate of Soviet GNP cannot be
compared directly with official Soviet national
income because the coverage is quite different. A
reconciliation, however, can be attempted by ad-
justing GNP to the Soviet coverage and definition,
insofar as this is known. The principal difference
exclusion from Soviet national income of (I) most
personal services as well its services provided by
government ("nonproductive branches" of the
economy in Marxist terminology 7) and (2) deprecia-
tion on fixed capital ill branches of material pro-
duction (the "productive" branches). Both cate-
gories must be deducted from the Ol:lt estimate of
GNP in 1970 to approximate Soviet "national
income produced" as defined in official USSIt
statistics. In addition, allowance must be Made fOr
differences in the price basis of farm houschol(I
incomme-in-kind and for the inclusion in Soviet
national income of an "account of price difference,;"
arising in foreign trade. 'I'll(! reconciliation of OER's
estimate of Soviet G N P and Official Soviet national
income produced in 1970 is shown below:
(INI' (in established prices) I ......................
Less:
'I'll,' value added in nonproductive serviees~.... ,,
I'etsotutl t.1,: nsport and cotntuuuivations't......
\Iilitary personnel costs I ................... . .
Othat' nonprotltietive service. ?I ................
5erviet ;s included in unallocated G N I''' .........
Depreciation on productive fixed capital ?........
capital.l ....................................
Plus:
IIU?m household imvnae-in-kind valuation adiust-
tttettt? .....................................
"Account of pricy differenCts in foreign trade" I' ....
hqu:tls: 61':13 implicit "national incowe produced,"
Sovietconcept ................................
Official Soviet national 111(01W' produced 10 ..........
Differcuee ......................................
See 't'able 7.
z fieri~?ed Its the sum of the parts.
Billion
Rubles
5151,9
5.:3
3(1.2
-1.11
25.3
302.1)
289.9
12.1
" Personal transport. Mid communications at9? estimated lit
:30% of the total GNP originating in transportation and coin-
ntunicatioa:. (33.11 billion rubles- Table 7). The nonproduetit9'
shut',' is the ratio of nonproduclivc fixed capital to total filed
capital ill the tao siclors ('l'sSU, A'orodnogc kho:)/ay.elro SSS1l
r 1968 pelt, Moscow, 1960, p. 60 tit, hereafter referred to as
A''trl,?ho: 1968, and situilanly for tither years in the series of
official Soviet statistical studbooks)
I Other nonproductive services are derived as the difference
between total (1NP ot?iginsting in services (40,31 billion rubles
'fable 7 and Appvwlix F, 'I'nble I"-)) and services included in
Soviet national income: (I) all productive personal services,
that is, those included in industry (1.5 billion rublesAp-
pendix I", Table F-2): utilities (2.0 billion rubles); and forest
economy (0.5 billion rubles). (Sec Appendix h, 'fable F-1.)
1n Souicl accounting practice the main nonproductive
branches are government administration, science (resenn'eh stud
development), credit Will insurance, military personnel costs,
health, education, housing, personal transportation and com-
munications, recreation, and personal care.
17
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r, Services Included II unfillovatod GNI' are estimated fir.
I.1.7')4, of the total GNP not allocated to individual seetols
(33.1 billion rubles--'t'able 7). 'I'll(, share is the ratio of the.
total value added In personal tl'allspnl't and rummunicatious,
military petwonnel costs, fill(] other nonproductive services to
total allocated (.Nil,
11 Depreciation on productive fixed capital Is derived as the
difference between total depreciation (31.8 billion rubles--
Table 7) and the sum of unalloatted depreciation (0.11 billion
rubles---Table 7) and the depreciation on nonproductive fixed
capital estimated to be included in the total (2.0 billion rubles).
The latter includes depreciation allocated to housing; repair
and personal care; reereatiou, art, and physical culture; and
30% of depreciation in transportation and couanultications.
(See Appendix F, 't'able F-4, and 't'able 7.)
7 The residual book value of retired productive fixed capital
is estimated on the basis of (1) the residual book value of re-
tired fixed capital in industry in 1070 (0.837 billion rubles-
V. K, Senchagov, Rinansal i effcklivnost' proizvadstrenrthkh
fondov, Moscow, 1070, p. 1011) art(] (2) the share that industrial
fixed capital represented of the total prodnrtive fixed capital
(53%). Total productive fixed capital is derived its the stun of
annual average fixed capital in industry, construction, agricul-
ture, trade, and 70%, of the fixed capital in transportation and
communications (Appendix G, item 4, tabulation, and note
3, above).
8 OER estimate.
11 Soviet national income produced includes it valuation in
domestic prices of the gain or loss of resources resulting from it
precise balance of trade in foreign exchange prices (at [,it(! actual
level of exports or imports, whichever is lower). This valuation
is estimated at TO billion rubles on the basis of the trade balance
in foreign trade prices (Na rkhoz 1970, p. 615) and the estimate
of the trade balance in domestic prices (p. 16, above).
IoNarkhoz 1072, p. 533.
42. Soviet official national income produced and
the OER implicit "national income produced" are
arrived at by quite different accounting procedures,
and, as a result, discrepancies and unallocated
categories are different and differently handled.
The Soviet calculation starts with the value of final
product of the productive branches, including total
transportation and communications. Deduction of
the value of personal transportation and communi-
cations gives final product of the productive
branches. This total includes the value of household
consumption of material products, materials pur-
chases by the nonproductive branches, and gross
investment in both productive and nonproductive
branches. Then, depreciation of fixed capital in the
productive branches is subtracted to obtain official
national income produced. Thus, Soviet national
income implicitly includes nonproductive deprecia-
tion, since only productive depreciation is deducted
from gross investment.
43. The OER calculation starts with estimatt,.,
gross national product, from which value added in
the nonproductive branches is subtracted to obtain
the 'ntlue of final product of the productive
branches. As in the ease of the Soviet calculation,
this remainder includes the purchases of materials
by nonproductive branches, the consumption of
material products, and gross investment, both
productive and nonproductive. From this re-
mainder, depreciation on productive fixed capital
is subtracted to get the equivalent of the Soviet
national income.
44. There is considerable uncertainty in this
attempted reconciliation: (1) the content and
coverage of nonproductive services in the Soviet
accounting is far from clear; in particular, the
breakdown of the unallocated value added of 33
billion rubles from Table 7 into productive and
nonproductive activity is quite arbitrary; (2) Soviet
accounting probably includes in final product-that
is, the sum of net outputs-activities that OER
does not consider to be value added; a:id (3) the
Soviet calculations of farm income-in-kind and price
differences arising in foreign trade cannot be
duplicated closely. Nonetheless, the resulting dis-
crepancy of 12.1 billion rubles, or 4.2oio of official
national income, suggests a gross consistency
between the components used in constructing
GNP and those in Soviet national income.
45. Similarly, personal consumption as reported
by the Central Statistical Administration can be
compared with household outlays for consumption
in the OER estimate of Soviet GNP. The reconcilia-
tion of OER's estimate of household outlays for
consumption and official Soviet personal consump-
tion in 1970 is shown below: Billion
Rubles
Household outlays for consumption (in established
prices) I ...................................... 103.3
Less:
Services omitted in official Soviet consumption
Trade union and other clues ................. 2.1
Housing-rent and repairs ................... 3.2
Other services 4 .............................. 1.1.1
Plus:
Farm household income-in-kind valuation adjust-
mertt5 ..................................... 0.1
Depreciation on housing e ...................... 7.0
Equals: Estimated Soviet "personal consumption". .. 181.0
Official Soviet personal consumption 7 .............. 177.9
Difference ...................................... 3.1
I See Table 2, item 4.
2 See Table 2, item 2, a.
I Outlays for housing are derived its the difference between
the total outlays of households for rent and repair of housing
(3A billion rubles--Table 2, item 2, h) and households' pur-
chases of state-provided repair (0.2 billion rubles-Appendix
B, item 2, b, (3)).
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'I Other servlees fire derived as Lhe difference between the
total outlays of households for other servie,w (2(64 billion
rubles---'f'able 2, item 2, e) and the sum of outlay's for (I)
utilities (3.5 billion I'll bles?-Tabl+ 2, item 2, c, (I)) and (2)
services included In Soviet retail trade (2,8 billion rubles). The
bitter is the sum of (1) film rentals ((62 billion rubles -Ap-
pendix 13, item 1, a) and (2) all other services included in retail
trade, with the exception of state-provided housinu'repair (2.8
billion rubles has 0.2 billion rubles---Appendix 13, item I, it,
and Appendix 13, item 2, b, (3)).
r, Oh,R estimate,
o See Appendix G, Table G-3, item 11.
7 Narkho: 11)7 2, p. 533.
Once again there seems to be it general consistency,
hearing in mind some substantial uncertainties
about Soviet procedures and some information
gaps. For example, commission sales in retail stores
are excluded from Soviet consumption but included
in OER's GNP because we do not know how large
they are.
46. A reconciliation of the major sectors of origin
in the Soviet breakdown and the OER breakdown
in Table 7 does not seern to be feasible. There are
important and unquantifiable differences in cover-
age and definition. The major problem is the extent
to which Soviet sectors are on a "pure" or commod-
ity classification basis; in contrast, the OER sectors
are on an establishment basis.
E. Comparability with 13ecker's 19.58-6/ Accounts
47. The OER accounts closely follow Becker's
format, classifications, and procedures. Hence, they
are generally comparable except in the few cases
where later evidence has called for some deviations.
48. The choice of control totals for both house-
hold and public sectors is the same. Becker, how-
ever, accepts an adjusted Soviet-reported tote.l for
household consumption that is larger by 30/x, or 2.7
billion rubles in 1960, than the sum of his estimated
consumption outlays. In the 1970 accounts, esti-
mated household consumption outlays are slightly
larger than the corresponding adjusted Soviet
consumption and are used here as the consumption
total.
49. In the public sector the only significant
differcc:ce between the OER and the Becker
accounts is in the approach to administration.
Becker simply uses the budget item, administra-
tion. In this publication outlays for "administration
and miscellaneous services" are 10.0 billion rubles,
compared with a budget item for "administration"
of 1.7 billion rubles. The effect of this change in
approach is to reduce radically the outlays n.e.c.
The categories in Becker's accounts comparable to
the 1970 n.e.c. are defense plus internal security
minus civilian police plus his outlays n.e.c. Includ-
ing civilian police, these sums range from 16.1
billion rubles, or 18.1% of total outlays in 1960, to
15.6 billion rubles, or 13.3% in 1964. In our 1970
accounts the outlays n.e.c. plus civilian police total
22.6 billion rubles, or 10.8% of public sector outlays.
F. Comparison with US GNP--Covcratle and
Classification"
50. US government expenditures, as reported,
cover a wide variety of activities, some of which
have to be separated and reclassified in order to
compare US and Soviet line items. For example,
producing enterprises of the US government-TVA
facilities, for example-probably should be com-
bined with private production. Health and educa-
tion e- )enditures of the US government must be
coma anod with similar private expenditures to get
health and education totals comparable to those in
the OER Soviet accounts. In addition, US GNP
accounts do not initially separate current from
capital expenditures of government as is done in
the Soviet accounts. In particular, US government
expenditures on highways, airports, utilities, hous-
ing, schools, health facilities, and research facilities
should be separated from current outlays on
government.
51. Another set of problems involves the Soviet
classification of activities as intermediate and final.
The categories in question include research and
development, economic administration, and "capi-
tal repair." In these categories, some activity in
the United States is financed by private business
and is written off as a current expense; therefore,
it is recorded as intermediate product rather than
as final product. In each case a much larger part
is included with final product in Soviet practice
and cannot be separated. Consequently, direct
international comparisons (such as those requiring
conversion of Soviet GNP to dollars or US GNP to
rubles) must reconcile the coverage of these
categories.
"Cc,mperison of Soviet GNP in established prices with US
GNP in market prices raises questions of interpretation too
numerous to be con:;'dered here. Some of these relate to the
extent to which Soviet accounting actually reflects the cost of
resources used. These problems are reviewed and attacked in
the discussion of the factor cost adjustment in the next section.
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V. The Factor Cost Adjustment
52. The objective of the factor cost, adjustment
is to provide It measure of the resources actually
allocated to various economic activities. An adjust-
ment is required because established prices gravely
distort relative value shares by sector or product
group. For example, the incidence of turnover
taxes r-rerstates the resource cost of the products
of food and light industries relative to other sectors,
and the absence of it depreciation charge for housing
understates the amount of real resource use in that
sector. In addition, Soviet prices do not accurately
reflect interest on capital--a resource cost--but do
include turnover and other indirect, taxes, state
subsidies, and profits, which do not represent
resource costs or represent them imperfectly. ?
53. The conversion of values in established prices
to values at factor co,( then consists mainly of
(1) adding charges on fi.:ed and working capital,
subsidies, and depreciation in nonproductive serv-
ices and (2) subtracting profits and indirect taxes.
The adjustment to factor cost is first calculated for
GNP by sector of origin (see Table 8 and Appendix
G). An adjustment is also made to wages (including
in-kind payments) and social insurance of military
personnel to reflect the opportunity cost of military
conscripts. The unallocated entry under indirect
taxes of 2'.469 billion rubles disappears by defini-
tion in the factor cost adjustment; unallocated
"other and imputed income" remains and must he
allocated by sector before the sector values can be
used as weights for sector growth indexes.
54. Having estimated the factor cost adjustments
for the sectors of origin, we then distribute these
adjustments among the end-use categories (see
Table 9 and Appendix H). The natural link be-
tween GNP by sector of origin and GNP by end
use is an 1-0 table, which shows interindustry
transactions in a matrix form. With such a matrix,
(1) the GNP sector-of-origin data can be thought
of as the value added or third quadrant of an I-0
table, and (2) the GNP by end use can be thought
of as the final demand or second quadrant of an
1-0 table. The interindustry matrix forms the first
quadrant linking the two sets of data. Using an
interindustry matrix that we have estimated on the
basis of a Soviet 1-0 table for 1966, the changes in
deliveries to final demand resulting from changes
? Although the new industrial prices introduced in 1066-67,
excluding turnover tax, reflect real production costs more
completely than did their predecessors, prices in most other
sectors do not reflect interest charges adequately.
in value added (that. is, the factor cost, adjustments)
are determined.
55. These changes in the value of deliveries to
filial demand are then distributed among the
various end uses based on at percentage distribution
of each producing sector's final demand among the
end-use sectors. This assumes that the factor cost
adjustment for any economic activity does not vary
according to the identity of the customer for that
activity. The separate factor cost adjustments for
the various services (for example, liousing) were
transferred directly to the corresponding end uses.
The 1-0 table could not be used for this purpose,
since it relates only to material production in
accordance with Soviet concepts.
56. The present GNP estimates for 1970, al-
though they represent a major research effort and
contain at good deal of useful information, are only
part of it program of continuing research. The
components of the two totals, GNP by end use and
GNP by sector of origin, are used by OER as
weights in calculating two indexes of real Soviet
GNP, both at least partially independent of the
official Soviet national income series in constant
prices. In particular, the OER index of GNP by
sector of origin avoids insofar as possible the use
of Soviet price indexes, which are largely unex-
plained and are widely mistrusted by Western and
Soviet economists. A subsequent report will present
the indexes of growth of GNP and its components,
together with it description of the methodology and
sources employed.
57. Another promising area of research centers
on the growing volume of 1-0 statistics. An attempt
is being made to integrate the reconstructed 1-0
tables for the USSR with the OER GNP accounts.
With a Soviet 1-0 framework extended to include
the services included in GNP, the analytical useful-
ness of the 1-0 tables should be enhanced-for
example, in testing the consistency and feasibility
of Soviet plans. At the same time, the scrutiny of
1-0 information may well lead to improvements in
the GNP accounts.
58. Finally, basic material must be accumulated
against the day that a new benchmark set of ac-
counts becomes necessary. Soviet planners change
prices with greater frequency than in the past.
Certainly, price relations are unlikely to remain
undisturbed for a period as long 'ws the time
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 betwei,t~RPFopy,RM Fug6i- glgf BRA, 0IR (QWi7:' 11 -RI E 6T006Q8R00050101c100~17-8utnbcn relations
consequence, GNP estimates based on 1970 ac- and to show the structure of the economy more
counts will have 'o give way in time to new esti- nearly its Soviet leaders see it.
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Sources for Table 1. USSR: Household Incomes, 1.970
1. State wages and salaries
at. Worker end employee wage and salary bill
The wage and salary bill for workers and em-
pl,iyees of 132.032 billion rubles is derived as the
product of the number of wage and salary workers
(90,186,000-Nar/c/toz 1972, p. 504) and their an-
nual average wage (1,464 rubles-Ibid., p. 516).
b. Profits distributed to consumer cooperative
members'
I'rofits distributed to consumer cooperative
members are estimated at 0.027 billion rubles,
2.02% of consumer cooperatives' net profits of
1.321 billion rubles (Ibid., p. 697). The share is
taken its the salve percentage as experienced in
1962-65, when distributions to members amounted
to 6,;.4 million rubles (P. I..Lyuskon, editor, 50 let
sovetskoy potrebitcl::koy kooperatsii, Moscow, 1967,
p. 142) out of consumer cooperatives' net profits
for the period of 3.389 billion rubles (Narkhoz 1963,
p. 637; Narkhoz 1965, p. 757).
(2) Payments to hired workers front outside
of agriculture (so-called "at:.racl,ed workers") are
estimated at6 0,413 billion rubles on the basis of (1)
the estimated number of hired workers employed in
agricultural activity on collective farms (0.5 mil-
lion) and (2) the assumption that these workers
were paid the same implied annual average money
wage its that earned by members (826 rubles per
worker). The number of these workers is estimated
on the basis of the total number employed by both
collective and state farms (0.6 million--Nar/c/toz
1972, p. 406) and, in line with the past, the attribu-
tion of no more than 0.1 million to state farms (see
TsSU, Strana sovclov za 50 let, Moscow, 1967, p.
162--163). The implied annual average money wage
earned by members is calculated by dividing the
total money payments (14.040 billion rubles) by
the annual average number of member-workers
(17.0 million-Nark/toz 1972, p. 406).
b. Net income from sales of farm products
Not income of households from sales of farm
products is derived its follows:
2. Net income of households from agriculture
at. Money wage payments by collective farms
(1) Payments to collective farm members are
estimated at .14.040 billion rubles on the basis of
(1) total wrge payments (money plus in-kind) of
15.0 billion rubles made by collective farms to
members for their work in the various forms of
socialized activity-agriculture, subsidiary indus-
trial enterprises, the housing-communal economy,
cultural-welfare institutions, eonstrl?ction, and
capital repair (Narkhoz 1972, p. 388) and (2) the
share constituting money paymouts only-93.6%
(V. N. Zhurikov and V. L Solomakhin, compilers,
Spravochnik po opiate lruda v kolkhozakh, Moscow,
1973, p. 10). Of total payments, the bonuses paid
from profits accounted for 1.;i%, or 0.225 billion
rubles (Ibid., p. 11).
*Unless otherwise specified, all data in the appendixes refer
to the year 1970.
Billion
Rubles
Grossiuconu ..................................
9.2381
Sale, to state procurement and state and coopera-
tive trade organizations ....................
:3.169
Collective farm ex-village market and toininission
sales .....................................
1.309
Sales of livestock to collective farms.... . ......
1.000
Less: Money expenses of production .............
0.9711
Purchases of materials and services.......
0.924
Indirect tuxes .........................
0.050
Equals: Net income from sr.:es ..................
8.264
1 Derived its the ,rum of the pmts. -----------------.---
Income of households from (1) sales to state
procurement and state and cooperative trade
arganizations and ;2) sales in collective farm ex-
village markets and commission trade is derived for
each entry as the difference between total receipts
of collective farms and househo!ds from such sales
and receipts of collective farms only. Data regard-
ing total receipts of collective farms and households
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 from sales I~CiQt~e~rFIQIi i~~ ~l~c~'0}Q 99,( i~ CIIRn~I+~R~161TA~11~Q~$iI~t9AAx~k10~~ti~-4AIi4,7p9-oli:tsps UN!
cooperative trade orgltniraLiot-s are available in
I'sSll, Sei'.skolle khozt/n//sl,o SSS/t, slulisNclles/cill
.sbornilc, Moscow, 1971, p. 90 91 (hereafter referred
to its Set's/collc klutzyay.stvo, I97I ); rile total volume
of MlleeLive ftu?u- ex-village -uarket sales is pre-
sented in Nurlchoz /1172, p. 573; the gross volume
of cotr-utissiun sales is available in Nurlchoz 11/72,
P. 588. Net comtuission sales are estimated at 85'%o
of gross commission sales. Receipts of collective
farms are computed from data regarding collective
fat s' total income and its sources presented in
Ekommnika, sel'skol/o khozyayrava, no. 7, 1972, p. 33;
I. F. Chernyavskiy, ltcalizalsilla .sei'skokhozyay-
stvennoll lu?odnktsii i cffeklivnosl' /rroizvodstva, i/los-
cow, 1974, p. 90; and S. V. Rogachev, Elcononti-
cheskiye zakon.ll i razvitiye sel'skoyo khozyaystva,
Moscow, 1973, p. 31-32.
Income of households from sales of livestock to
collective farms in 197( is estimated on the basis
of sales in 1909 (0.834 billion rubles---G. I. Shruelev,
Lichnoyc horlsohnoye lclcozyaystvo i ycgo svyazi s
ohshchcslvcnnllnt lrroizvodstvont, Moscow, 1971, p.
18). The estimate takes into account the substan-
tial increase in livestock procurement prices paid
private producers in 1970. The assumption is made
that collective farms would have to match state
procurement prices in order to compete with pro-
curement organizations as potential buyers of
these private livestock. While an allowance of 1
billion rubles may seem generous because of the
probability that the value of sales in 1969 reflects
distress sales in it poor crop year, it should be noted
that Shmelev also refers to--but does not quantify-
similar sales to state farms by stat'~ farm workers.
Since no estimate is made for this additional source
of income of households, the allowance seems
acceptable.
Purchases of material and services used in
production of agricultural products are estimated
at 10% of households' gross income from sales of
farm products. Out of total current pt!: chases
(0.924 billion rubles), one-half (0.462 billion rubles)
is assumed to represent purchases of producer goods
(mixed feed, fertilizer, tools, and the like) in the
state and cooperative ti -le net, and the remainder
is assumed to account for purchases from collective
farms of livestock feed, seed and other materials,
and services. Household purchases of livestock feed
(grain, hay, and straw) from collective farms are
estimated at 0.332 billion rubles on the basis of
data regarding quantities sold and prices paid in
1970 in collective farm in-village markets, the trade
made. (See Itogachev, op, cit., p. 184, 218; Voprosy
ilhonomiki, no. I, 1973, 1). 57; G. V. Kulik, et (d.,
compilers, Spr?avocltnik ekonontisla lcollchoza i
sot'/chozu, Moscow, 1970, p. 344.) Purchases of seed
and other materials are arbitrarily estimated at
0,030 billion rubles. Purchases of services (rental of
draft animals, trucks, and other equipment; veteri-
nary services; and other services) are derived Its
0.100 billion rubles, the difference between total
current ptu?elutses from collective farms and pur-
chases of livestock feed, seed, and other materials.
Indirect taxes paid by farm households consist
largely of collective farm muarket fees. Livestock
owl: lrship fees have been sharply cttt in It series of
decrees and are assumed to have been insignificant
by 1970. ;Market fee payments by households are
estimated) at 0.050 billion rubles on the basis of (I )
the it um her Of calk^tive farmers claimed to be,
found daily in the markets ("700,000 collective
farmers; or it matter of 250 million man-days in it
year"--V. K. Logvinenko, Kollchoznaya sohsiven-
nost' i voprosy yeye razvitiya ho pcrekhode Ic kom-
munizmrc, Kiev, 1966, p. 103) and (2) the daily fee
rates ( D. V. 13urtnistrov, Nalogi i shory s naseleniya
v SSSR, Moscow, 1908, p. 101). Fees levied on
sellers in collective farm markets vary from 10
kopeks to I ruble based on the space used to
conduct sales. A flat rate of 20 kopeks was used for
the computation on the assumption that collective
farmers sell for the most part from the hand or
ground rather than from wagons or trucks.
c. Net farm income-in-kind
(1) Consumption-in-kind-Soviet ''farm
households," which comprise the private plot
agriculture of both rural and urban residents,
receive an important part of their income in the
form of income-in-kind, consisting of agriculturtt:
products received as labor payments-in-kind and
agricultural products raised on their own plots.
The value of this consumption-in-kind is estimated
at 18.347 billion rubles in Tables A-I and A-2. In
Table A-1 an estimate of consumption-in-kind in
physical units is derived for each of eight farm
products-grain, potatoes, vegetables, sunflower
seeds, meat, milk, wool, and eggs. With the excep-
tions of the estimates for grain and sunflower
seeds-for which see sources to Table A-l-these
estimates are based on data regarding gross output
nonmarketed production use (seed, feed, and
waste), and off-farm ("urban") marketings (state
procurements, collective farm ex-village market
and commission sales, and decentralized procure-
ments). In Table A-2 the estimate for each coin-
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nwdity hr ~tt~~aite( at t le average realized price payments to the population that are known to he
for urban rnarketings, derived by valuing each excludc(i from these estimates tire travel and
type of marketing at the appropriate price and moving allowances of all kinds; certain types of
dividing the stun of the values by the sun of the training and expense allowances; incomes from the
quantities. In part 10, the summary of 'f'able A-2, sale of personal property through commission
consumption-in-kind of each of the eight products, stores and other outlets; payments for the collec-
tin allowance for consumption-in-kind of all other Lion and sale of scrap, waste paper, and the like;
products, and total consumption-in-kind are shown payments to blood donors and compensation for
in millions of rubles. h msi l I
ca
(2) Investment-in-kind, it monetary valuation
of the net addition to private livestock inventories,
is estimated at 0.513 billion rubles on the basis of
the change in numbers of catt!:,,, hogs, sheep, and
goats and the estimated average realized price per
head for each animal. The calculation is presented
in Appendix 1), Table D-1.
3. Income of the armed forces
it. Military pay
CIA estimate.
b. Military subsistence
CIA estimate. The entry includes food, estimated
at 1.410 billion rubles, and clothing, estimated at
0.590 billion rubles.
4. Other money income currently earned and
statistical discrepancy
a. Private money income, currently earned
Private money income is estimated at 2.669 bil-
lion rubles, the sum of private earnings in construc-
tion (0.239 billion rubles-see item 6, below) and in
services (2.430 billion rubles). Earnings in services
are the sum of estimated private income from
housing repair (0.957 billion rubles-Appendix B,
item 2, b, (3)); other private repair and personal
care (0.843 billion rubles-Appendix B, item 2, c,
(4)); recreation services in the form of private room
rentals (0.484 billion rubles-Appendix B, item 2,
c, (5)); education (0.093 billion rubles-Appendix
B, item 2, e, (6)); and health (0.053 billion rubles-
Appendix B, item 2, c, (7)).
b. Unidentified money income and statistical
discrepancy
The entry is derived as the difference between
total income (item 9, below) and the sum of
items 1; 2; 3; 4, a; 5; t; and 8. An effort has
been made to include in items 1; 2; 3; 4, a; and 8
all money incomes that are reported in Soviet
sources or that can be estimated from these sources
with a reasonable degree of accuracy. Money
i y
Injury, tin( earnings from hunting and
income from fishing cooperatives. Moreover, wages
paid to prison labor may be entirely or partly
excluded. No estimates have been made for it
variety of private activities such as domestic
service, taxi service, and handicraft activities.
Transfer receipts other than those included in
official statistical handbook data on pensions and
allowances and stipends may exist. Finally, no
estimate has been made for the net change in
installment rlebt.
Two wage funds are referred to in Soviet ac-
counting practice-the "wage fund of wage and
salary workers" and the "comprehensive (polnyy)
wage fund." (See the following studies of Soviet
wage statistics: Abram Bergson, "A Problem in
Soviet Statistics," Review of i:cononcic Statistics,
Vol. 29, no. 4, 1947, p. 234-242; Janet G. Chapman,
Real Wages in Soviet Russia since 1928, Cambridge,
1963, p. 110-113; and Gertrude E. Schroeder in
Vladimir G. Treml and John P. IIardt, editors,
Soviet Economic Statistics, Durham, North Carolina,
1972, p. 293-294.) The wage fund of wage and
salary workers refers to the aggregate wage bill
that is obtained as the product of published data
on average wages and annual average employment.
The comprehensive wage fund is not published,
and no description of its contents is available.
Presumably, this fund-on which the Central
Statistical Administration compiles quarterly and
annual reports, based upon reports of ministries
and organizations rather than upon direct enter-
prise reporting-includes all money incomes and
is used for planning the annual "balance of incomes
and expenditures of'the population." Sotr-e of the
items believed to be included in this "comprehen-
sive fund" are estimated in items 1, b; 2, a; 3, a;
and 4, a, above. Other items are presumably
included in item 4,,b.
5. Imputed net rent
Appendix B, item 2, b, (2).
6. Imputed value of owner-supplied building
services
The imputed value of owner-supplied building
services in construction of private housing is esti-
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mates) at, 0.880 billion rubles on the basis of (1) the
value of private housing construction (2,020 billion
rubles---Appendix Ii, item 5, a); (2) the assumption
that materials account for 35%, (0.710 billion
rubles) and wages for (15% (1.319 billion rubles)
of the value of private housing construction (tile
latter share is set at approximately double the wage
share in costs of the construction industry----as
reported in Narkhoz 1972, p. 498----because of the
highly labor-intensive nature of private housing
construction); and (3) the assumption that of the
labor component of private housing investment,
payments for hired building services account for
one-third (0.439 billion rubles) and the value of
unpaid owner-supplied labor two-thirds (0.880 bil-
lion rubles). The assumption is further made that
of purchased building services of 0.439 billion
rubles, state-provided services amounted to 0.200
billion rubles, or roughly half the amount reported
as outlays of the population on "construction and
repair of housing" (Ibid., p. 021) and private hired
services the remainder, or 0.239 billion rubles.
7. Total income currently earned
Derived as the sum of items 1 through 6.
8. Transfer receipts
it. Pensions and allowances
Pensions and allowances ire &,rived as 21.955
billion rubles, the difference between total outlays
for social security and social insurance, including
pensions (22.8 billion rubles-Ibid., p. 726) and the
sum of outlays (Ibid., p. 728) for health resorts and
sanitoria (0.551 billion rubles), outlays for kinder-
gartens and pioneer cralnps (0.191 billion rubles),
find IiiisCClhLncOUM outlays (0,103 billion rubles).
The latter three categories are health expenditures.
(See Appendix D, 1, e.)
1). Stipends
Ibid., p. 535.
c. Interest inco>rc
Interest income of 1.035 billion rubles is the sun)
of estimated interest on savings accounts (0.935
billion rubles) and loan service of subscription bonds
(0.100 billion rubles). For the latter see Narkhoz
1970, p. 732. Interest on savings accounts is
calculated at 2.2'%o of the population's annual aver-
age savings deposits in 1970 of 42.498 billion rubles
(derived from end-1909 and end-1970 data in
Narkhoz 1970, p. 564). The rate is the same as that
calculated for 1965, when interest amounted to
0.383 billion rubles ( Vestnik statisliki, no. 1, 1967,
n. 22) on the population's annual average savings
deposits.of 17.217 billion rubles (derived from end-
1964 and end-1905 data in Narkhoz 1965, p. 602).
Net new bank loans to households are estimated
at -0.034 billion rubles, the difference between
long-term loans outstanding to the population at
end-1970 and at end-1969 (Narkhoz 1970, p. 735).
Equal to total outlays (Table 2, item 8).
26
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 Approved
1 Sources:
unit A. (.roses Output
For till couunuditles, with Lit(, exception of amuit, set! Sel'nkol/e
khozyuy,sii o, 1971, as follows: grain, p, 154-18.5; potatoes, p,
20(1; vegetables, 11. 21 It sunflower seeds, p. 203; milk and milk
prod(lVts l!x1)rissini III Lernls of milk, p. 300-3(11; wool, physleul
weight, p. 310-317; and eggs, p. 300, For 111001 see 'f'able A-3.
Column 11. Used in Production (Seed, Feed, and Waste)
Grain; sunflower seeds
The eitillillte for elteh commodity is derived Its It I'es1d11111, the
difference between gross output (colunin A) told till, suln of the
total marketed output (column C) find Lit(! Output Consumed
in-kind by farm households (Column L), The entry ill Volition 11
records (I) x0011 requirements for tit(! 111'011 sowln to caoh crop In
the following year (1971), (2) the quantity of the crop set aside
for livestock feed, and (3) the ovm?stute(I tonnage--moisture
and trash, weed seeds, and postharvest losses incurred in the
handling of the commodity between the coaib',ne un(1 storage
facilities- that results when "bunker weight" (its measured in
the harvesting nutchine) is used in determining the size of the
harvest.
l', aide,
I'otittots used in production front the 1070 crop consist of the
quantity of potatoes required to seed the area sown to the 11(71
crop and the quantity allocated to livestock feed, with Lh(! litter
reduced by the quantity of marketed output used for feed
(which is recorded in this table in column 1) rather than in
coltunn 13).
Seed allocution of potatoes is calculated at 19.74 million
tens, the. quantity required to seed 7.894 million hectares sown
to potatoes in 1971 (Narkhoz 1922--72, p. 2.13) at the all-USSR
actual 1967-70 average seeding rate of 25 centers per hectare
(Zakitpki ecl'skokhozj1al/strennykh produkloe, no. 3, 11)73, p. 18).
The quantity of potatoes fed to livestock front the 1970 crop
is estimated at 37.6 million tons on the basis of (1) the actual
quantity fell in 1970 (30.9 million tons-(lath provided the 1671
US Feed-Livestock Delegation by the USSR Ministry of
Agriculture); (2) the quantity estinuatoil to have been fed in
1971 (:38 million tons--estimated from ministry data in line
with the five-year annual average in 1906-70 but, in order to
reflect the larger 1970 crop, set above the 1970 level of feeding);
till(] (3) the assumption that the quantity fed in year it origi-
nated one-third from the crop of year it and two-thirds front the
crop of year it - 1. Thus, % of 30.1) + 2 of 38 = 37.6 million
tons. Ill order to avoid (Iouble-rounthlg, this cstlluute Is In
turf reduced by ((.5 million tons representing till IIIlOWam?e for
I )OtiltlIS fed front spollltge In slllq)llls Of till! state 1111d e001N'ra-
Live trade net (lull heron! counted in iularketed output I ite
procurelueuts- here). 'T'his allowance Is bused oil claiion that
annually about 10'%) cf praem?emcnLs are wasted and t.hnt
about 40'%) of these losses ill-(! snlveged for livestock feed (N. A.
I.otov, editor, Orpanizalnil/a i ploniroeallil/e olrunlrll narodnolp)
kho.'yaynh4t, Issue 13, Kiev University, 19(1)), p. 1:30).
Vc'uelables
The entry for column 13 is tilt estimate of vegetables fed to
IIvcntock Gd'iikited at 20%) of gross (01lpllt of vegetables. 'Phis
share caul be stibstillitliited for seVel'!al years based Oil actual
on-form feeding of vegetables by collective null state farms
(F. T. Zenilyanskly, i'konomiku podsobnykh predprillatip i
prolnl/sloe a kolkhozakh, Moscow, 11(71, p. 195-196) !111(1 it state-
nient regarding the general level of vegetable feeding by the
private sector (P. A. Ignatovskiy, Solsiul'no-e kononmichcskille
iz mcnenil/u a son etsko)l dcrcl ac, Moscow, 11(00, p. 38:3). Not
included lit this estimate is the quantity of vegetables fed from
spoilage lit supplies of the state 1111(1 cooperative trade net
(reeer(ICd in this table in nuirketed output-state procure-
alents), Evidence indidlttes that annually about 7%, of the
vegetables procured spoil mid that about 40%) of these losses
are salvaged f 'r livestock feed (Leto v, op. cit.).
41filk and milk products expressed in terms of milk
Official (lata regarding the amount of whole milk fed to
livestock by all of agriculture in 1970 are front Cosudar trennt/r/
pr/ulilelnil/ plan razrilil/a narodnotlo khozazr/alea SSS/R na 1971--
1975 pody, Moscow, 11)72, p. 175 (hereafter referred to as
Cosudarstnennlll/ pyalilchli9 plus 1971--1975).
l: flux
The number of eggs used in production is estimated its the
number of eggs needed for complete replacement of layers
using it hatch into of 65%,.
Column C. Marketed Output, Total
For till commodities, with the exceptions of merit and wool,
accounting weight, see A'urkhoz 1922-72, p. 226. 'T'otal nmr-
keted output of pleat, live weight, is estimated oil the basis of
(1) total marketed output of meat, slaughter weight (Scl'skoye
khozyoystvo, 1971, p. 49); (2) the percentage share of the total
marketed by each producer (Narkhoz 19:12--72, p. 227); and
(3) overall dressing percentages for each producer (derived in
Table A-3). This calculation is set out below:
Total marketed output of meat.....
100
9,400
State farms and other state agri-
cultural enterprises ..........
41
3,850
62.3
6,180
Collective farms ...............
42
3,950
62.3
6,340
Private producers .............
17
1,600
65.2
2,454
Column 2 divided by column 3, except for the column's total entry, which was derived its the
suns of the parts.
29
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 Total Intui ltlc~l~~(IQY)~rldo~~t~n1.`rryel pI iY'r?fA1:1i ~t(,~~{nr CI'IAcT,T) P,,?fl?l'r)7f)Qr, r7'?rrrTlf,ll r7, Ps/ )// ~,~Jlt'$rrrHli ll(J()Hf1rJ11 11,
Hwu of state procurornents (coluu)u I)), Holes III collective farm 24 20 Alur?eh lllfib, s/eiuyr'ufirlivskill orchel, Moscow, I1)115,
ex-VIlItg(' I(farI(etH aa(I co)((iiiiHHlon Lritdo ((UInin(n .1), find
dveentrallze(I procurementH (oolunin K). Jlnrltet('(I output of
wool, accounting weight, is estbntted on the 1)11H1H of (I) (tut))
for marketed output. of wool, physical wi-Ighl, and (2) tit(!
It4811(iIl)LIn11 (,)till phyHleal weight wits 88,11'%1 of ficcounting
weight ((.lie relationship obtalniug for wool procurements
presented la Narkhoz 1x170, p. 282).
Column I). State Procurements, Total
For all commodities, with the exceptions of (neat by type and
wool, physical weight, see Sc!'Nko//e k/io iu1lsIvo, 1117 1, Its follows:
grain, p. 54 55; potatoes, p. 201;; vegetables, p. 211; sunflower
seeds, p. 203; local, p. 74-75; milk and milk products expressed
in (ernes of milk, p. 78. 71); wool, accounting weight, p. 8087;
and eggs, p. 82-83. State procurements of neat by type are
derived its the Huni of state procurements from state farms and
other state agricultural enterprises (column E), collective farms
(column F), and private producers (column ?(1). For wo?l,
physical weight, sec Narkhoz 11170, p. 282.
Column E. State Procurements from Slate Farms and Other
Stale Agricultural Enterprises
For all commodities, with the exceptions of nreit by type, see
S&/'skollc khoz1jays1vo, 1971, its follows: grain, p. 1320 (data in
source were reduced by I million totes in order to show the
repayment of seed loans separately in column il); potatoes fund
vegetables, p. (323; sunflower seeds, p. (122; mint and milk and
milk products expressed in terms of milk, p. (138-031); wool,
accounting weight, and eggs, p. 6.10-(i4I. Total meat procure-
ments front state farms and other state agricultural enterprises
were differentiated by type of Input on the basis of the assump-
tion that procurements would be structured as was socialized
sector (neat production, live weight (structure from Table A-3).
For fill commodities, with the exceptions of meat, by type, see
Scl'skoyc khozyallslvo, 1971, its follows: grain, p. 531 (data in
source were reduced by 1 million tons in order to show the
repayment of seed loans separately in column II); Potatoes and
vegetables, p. 534-535; sunflower seeds, p. 533; meat and milk
and milk products expressed in to is of milk, 1). 550-551; wool,
accounting weight, and eggs, p. 552-553. Total neat procure-
ments from collective farms were differentiated by type of
meat on the basis of the assumption that procurements would
be structured its was socialized sector meat production, live
weight (structure front ','able A-3).
Column C. Slate Procurements from Private Plots or Collective
Farm Members and Wage and Salary Workers
The estimate for each commodity, with the exceptions of
neat by type, is derived as the difference between total procure-
ments (column 1)) roil the suns of procurements from state
farms and other state agricultural enterprises and front collec-
tive farms (columns E, F, and If,, where applicable). Total
meat procurements from private producers were differentiated
by type of anent on the basis of the assumption that procure-
ments would bo structure(] as was private sector meat produc-
tion, live weight (structure from Table A-3).
Column H. Repayment of Seed Loans
The general size of annual seed loans is estimated in line with
the extension of 2 million tons in early 1965 revelled by
Brezhnev at the (,larch 1065 plenum on agriculture (Plc) in
p. 10) and the Inst itvallabli explicit evideuco oil these loons -
at extension of 1.7 million tons of seed grain to collective and
state farms announced in March of 11)118 (FAIN, !)oily licpor'l
Soviet Union, 28 ).larch 11168, ce 4). The loins Ill'(- here
arbitrar'lly allocated to state fights nod (OlleiUve (gents in
equal shares.
Column I. Difference Between Physical and Accounting Weight
Procurements
Official (Into for procurements of vegetables, meat, aa(l eggs
Iur given in physical weight. Official data for Procurements of
grain, potatoes, sunflower seeds, milk, and wool arc given in
accounting weight --that is after adjustment (addition or sub-
traction) for divergence of the quality of the products from
established standards, (See .SH'skoye khoz/lal/N/ra, 11171, p. (182.)
For ex.(niple, in the case of procured milk, all quantities fur
expressed In terms of tons of it standard butterfat content; in
the case of grain, adjustment is made to It standard content of
moisture and extraneous matter.
In order to array procurement uitUi that fire in accotu)ling
weight with official gross output and marketed output data that
are in physical weight, some approximation of the size of this
accounting adjustment must be made. 'Though lath regarding
the actual relationships of accounting weight to physical weight
are not available for coon. des for the whole of agriculture,
these data have been published for state farms for 11)130-(37
(L. N, Kassirov, Khozraseher I /sent' a suitsialistlchcskoc, N('/'sko ni
kliozyall.tve, \loscow,'10(19, p. 158), and the eight-year average
of these relationships (accounting weight expressed as it percent
of physical weight) is used to convert data ill accounting weight
to physical weight for each commodity (where applicable). In
turn, the difference between the derived physical weight data
and the official accounting weight data is entered in column I.
'T'hus, for grain, accounting weight procurements are tassuitied to
equal 114.2% Of physical weight; potatoes, 1)1).11%; sunflower
seeds, 06.5%; and milk till(] milk products expressed in terns of
milk, 08,5'%,. Wool is handled differently because total procure-
nent data are available in both measures, till(] in turn, total
marketed output may be expressed in either nl(gtsmre.
Column J. Collective Farm Ex-Village Market and Commission
Sales
Collective farm ex-village market trade refers to sales ntitd,e
by farm producers to the nonfarni population at tin control led
prices. Commission trade refers to sales of surplus agricultural
commodities accepted by consumer cooperatives front producers
for sale on commission. The estimate for cacti conintodity, with
the exceptions of meat by type, is derived its it residual, the
difference between total marketed (colu11111 C) and the sum of
total procurements, the accounting difference, and decentralized
procurements (columns U, 1, and K). Total sales of uncut were
differentiated by type of went on the basis of the ass if tit pti oils
that (I) the total consists of 576,000 tons sold by collective
farms (collective farms' total marketed output of meat, 6,340
thousand tons, less their state procurements, 5,704 thousand
tons) find of 1,125,000 tons sold by private producers (private
producers' total marketed output of meal, 2,45: thousand tons,
less their state procurements, 1,321) thousand tons) and (2)
sales by these producers could be assumed structured as was
their production (structures from 'fable A-3), 'This methodology
assumes that state farms and other state agricultural enterprises
do not sell in collective farm markets and that collective fnrnts
and private producers (lo not market by means of decentralized
procurements.
30
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Column L' Ifecentrnl zed Pructire menIN (110111 L'LnINlinl ii Ill-kiiiil IN lij)I11'oii111Lt( 'II nn rho basis of till
DvvvittraIIzed procurenteuts are minor procureun'ais by astinmte of grltin iv0ilable for loon households' use lit I97(1 and
consuuur' cooperatives for public dieing tilt(] for suppleuleutnry
food supplies to the population through the trade net. Thu
estinlnto for inch eonluu)dity, with the exceptions (if grain,
sunflower Herds, Ill)(] Mint by type, is derived its it residual, the
difference between total marketed output of suite fill-111h turd
other stale agricultural enterprises (Narkhoz 197#', p. 29(1 21)7)
and the still) of their state procurements (column E) will their
share of the accounting difference (data of colunul I were
attributed to state farms and other state agricultural enterprises
according to their share in total procurements of the product).
The grain entry is Net at an allowance of I million tons; the
sunflower seeds entry IN assumed to he zero, 'T'otal deeentritlized
procurements of meat were differentiated by type of went on
the basis of the ltssnnlptibrl Unit sales could be usstltned struc-
tured its was socialized sector meat production, live weight
(structure from Table A-3).
Column L. Farm Household Consumption-in-Kind
The estimate for each commodity, with Pthe exceptions of
grain and sunflower seeds, '. derived its it residual, the difference
hetween gross output (column A) and the stun of the quantity
used in production (erlumn 13) and the quantity uutrketed
(column Q. 't'he entry for sunflower seeds is arbitrarily set at
half it million tons, approximately half the quantity consumed
in-kind in 1961. (See M. S. Abryutina, Sel'skoye kho yaysIio e
sixtcmc balansa rturodnogo khozyallstra, Moscow, 1965, p. 116;
Narkhoz 1962, p. `233, 272.)
till eHtiiniLti'd llispuHltiOll of this NLII)ply. The grain slpply at (he
disposal of fuUYn In111NehuldH is estimated at about 1) million (uns,
consisting of distributions for labor pity in collective fill ills (I.'S
million tons--V, N. Koslnskiy, leuspredeleiille dokhodol, o
kolkhozokh, Moscow, 11)71, p. (10); additional sales by collective
films to collective flamers at special prices (5,(1 million tonls-
Ihid. nod RogacheV, op. CO., p. I8-1); and own prudnctioa (1,9
million toils--,Sel'skoye khozynyxhm, 11)71, p. I54- 155, 522- 523,
6110-611). Disposition of this supply is estitalteLl as follows: 0,2
Million tons for seu.d use (1,08 million hectares seeded it 1,7
eentners per hectare); no sitles to slate procurement. orgalilra-
tions; 5.8 million tons, 65%, of the remainder, fed to livestock;
trod 3 million tons, fit(, remaining 35'%,, convtnned in-kind by
fall households. The estimates of grain fell to livestock lind
grain consumed in-kind by farms households take into accomlt
(I) the traditional requirement of 4- G trillion tons of feed grain
to maintain the livestock holdings of collective farm members
(see V. A. Morozov, Trudodcn', dcn'gi, i torgoelya no selc, Moscow,
1965, p. 149. 150) and (2) the sharp decline in consumption-
i11-kind of grain by in households in 1911)-7(1 associated With
the rise in money pay of labor, the attendant drop in distribu-
tions of grain as labor payment-in-kind, and the repiacenlent
of in-kind consumption with purchases of breed and bakery
products in the state and cooperative trade net. Indeed, today
80'%I of the rural population's need for bread is reportedly met
by baked products of cooperative and "tale bakeries. (Scl'skttya
zhizn', 3 July 1973, p.:3.)
2 Net of increment of livestock herds.
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110017-8
1. (train 2. Potatoes
Quantity Price Value Quantity Price Value
Thousand ?(.0 cs per Mllllon Thousand Robles per Million
Metric Tons i:frtric Ton Rubles Metric Tons Metric Ton Rubles
it. Marketed output
(I) Deliveries of state farms and other
state agricultural enterprises..... .
35,772
93
:3,32(1.8
4 3(11
81
355.7
(2) Procurements from collective farms..
35,512
1(11
:3,586.7
5,01(1
70
352.8
(3) Procurements from private plots of
collective farm members and wage
and salary workers ............. .
(1
-
-
1,S02
70
120.1
(4) Repayment of seed loans ...........
2,000
0
0
Not app.
-
-
(5) Difference between physical and ac-
counting weight of proettretnents..
(6) Collective farm ex-village market and
commission sales ............... .
2,00-1
248
497.0
(1, 002
170
1,074.4
(7) Decentralized procurements........
1,0()()
2,18
2.18.0
854
171)
152.1)
(8) Total marketed output .............
80,800
103
7,658.5
18,100
114
2,061.9
I). P'arnt household consumption-in-kind....
:3,0()()
10:3
300.0
21,843
114
2,490.1
3. Vegetables 4. Sunflower Seeds
Thousand Rubles per Million Thousand Rubles per Million
Metric Tons Metric Ton Rubles Metric Tons Metric Ton Rubles
a. Marketed output
(1) Deliveries of state farms and other
state agricultural enterprises ......
(2) Procurements from collective farms..
(3) Procurements from private plots of
collective farm members and wage
and salary workers ..............
(4) Difference between physical and ac-
6,213
4,058
101
112
627.5
45.1.5
871
3,742
173
182
150.7
681.0
counting weight of procurements..
(5) Collective farm ex-village market and
commission sales ................
1,781
381
(178.6
380
273
103.7
(6) Decentralized procurements ........
1,101
381
419.5
0
273
0
(7) Total marketed output .............
13,800
163
2,252.6
5,160
187
935.4
b. Farm household consumption-in-kind....
3,170
163
516.7
500
187
93.5
32
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Table A-2 (Continued)
USSR: Valuation of Farm Household Consumption-in-Kind; 1970
5. Meal, Live Weight-' fin. Cattle
Quantity Price
Thousand Rubles per
Metric Tons Metric Ton
it. Marketed output
(1) Deliveries of state farms and other
state agricultural enterprises...... 5,502 I,41(1
(2) Procurements from collective farms.. 5,704 1,524
(3) Procurements from private plots of
collective farm members and wage
and salary workers .............. 1,329 1,349
(4) Difference between physical and ac-
co
n
ti
u i
ng we
g
h
t of procurements.. Not app.
(5) Collective farm ex-village market and
commission sales ............. 1,701
(0) Decentralized procurements ........ 078
(7) Total marketed output ............. 14,974
b. Faris household consumption-in-kind.... 4,428
Quantity
Thousand
Metric Tons
it. Marketed output
(1) Deliveries of state farms and other
state agricultural enterprises ...... 1,590
(2) Procurements from collective farms.. 1,000
(3) Procurements from private plots of
collective farm members and wage
and salary workers .............. 526
(4) Difference between physical and ac-
counting weight of procurements.. Not app.
(5) Collective farm ex-village market and
commission sales ................ 611
(6) Decentralized procurements ........ 196
(7) Total marketed output ............. 4,589
b. Farm household consumption-in-kind.... 1,729
Value
Quantity
Price
Value
Million
Thousnnd
Rubles per
Million
Rubles
Metric Tons
Metric Ton
Rubles
7,050.3
3,054
1423
9,345.8
8,786.2
3,101)
1,531
9,907.3
1,702.8
932
1,202
558.1
-
-
Not app.
-
_-
1, 52'1
2,598.8
086
1,108
821.8
1.42;
1)07.2
376
1,108
450.4
1,476
22,101.4
7,747
1,431
11,083.4
1,514
6,702.5
1,503
1,431
2,150.8
5R. Hogs
5C. Sheep and Goats
Price
Value
Quantity
Price
Value
Rubles per
Million
Thousand
Rubles per
Million
Metric Tou
Rubles
Metric Tons
Metric Ton
Rubles
1, 576
2,505.8
501
801
146.4
1,614
2,688.9
525
989
519.2
1 , 417
745.3
-
-
1 , 850
1,130.4
187
984
189.0
1,850
362.6
(12
984
61.0
1,620
7,433.0
1,435
935
1,342.4
1,620
2,801.0
522
935
988.1
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't'able A-2 (Continued)
USSR: Valuation of Farm Household ConsuInption-iii-Kin(l; 1970
51). Poultry 6E. Other Ment Animals
Quantity 'Price Value Quantity Price Value
Thousand Rubles per million Thousand Rubles per Million
Metric Tons Metric Ton Rubles Metric Tons Metric Ton Rubles
it. Marketed output
(1) Deliveries of state farms and other
state agricultural enterprises...... 225 1,005 428.(1 132 I,740 22(1.7
(2) Procurements from collective farms., 236 1,825 130.7 1:38 1,740 2,10. 1
(3) Procurements from private plots of
collective farm members and wage
and salary workers .............. 165 1 (183 277.7 10 1,740 80.0
(4) Difference between physical and ac-
counting weight of procurements.. Not app. -- - Not app. - -
(5) Collective farm ex-village market and
commission sales ................ 164 2, 158 353.0 53 2,051 108.7
(6) Decentralized procurements.... , , .. 28 2, 158 0(1.4 1() 2,(151 32.8
(7) Total marketed output ............. 818 1,896 1,551.3 385 1,796 691.3
b. Form household commmption-in-kind.... 521 1,806 987.8 153 1,790 274.8
6. Milk and Milk Products Expressed
in Terms of Milk
Quantity Price
Value
Quantity
Price
Value
Thousand Rubles per
Metric Tons Metric Ton
a. Marketed output
Million
Rubles
Thousand
Metric Tons
Rubles per
Metric Ton
Million
Rubles
(I) Deliveries of state farms and other
state agricultural enterprises ...... 19,291 10.1 /
3,742.5
1(17
4,460
876.6
(2) Procurements from collective farms.. 24,880 192
4,778.7
183
4,037
003.5
(3) Procurements from private plots of
collective farm members and wage
and salary workers .............. 1,501 174
261.2
61
4,443
271.0
(4) Difference between physical and ac-
counting weight of procurements.. 696 J
0
Not app.
-
-
(5) Collective farm ex-village market and
commission sales ................ 1,048 316
331.2
3
4,443
13.3
(6) Decentralized procurements........ 575 316
181.7
0
4,443
0
(7) Total marketed output ............. 48,000 196
9,295.3
444
4,650
2,064.4
b. Farm household consumption-in-kind.... 23,516 106
4,600.1
24
4,650
111.6
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Table A-2 (Continued)
USSR: Valuation of Farm household ConHumption-in-Kind; 1970
8. Eggs
9, All Other
it, NIarketed output
(1) Deliveries of state farms and other
state agricultural enterprises......
Quantity
Million
Units
11, 730
('rice
Rubles per
Thousand
Units
103
Value
Million
Rubles
1,208.8
Quantity
Thousand
Metric tons
Not app.
Price
Rubles per
Metric Ton
Value
million
Rubles
(2) Procurements from collective farms..
4,340
82
350.4
Not app,
(:3) Procurements from private plots of
collective fare) members and wage
and salary workers ..............
Difference between physical and ac-
counting weight of procurements..
Collective farm ex-village market and
coil) In issio It Hales ............... .
2,522
120
317.8
Not app.
(0) Decentralized procurements........
1 , 524
12(1
11)2.0
Not app.
(7) Total marketed output .............
22,100
lot)
2,220.9
Not app.
b. Farm household consumption-in-kind....
10,703
100
1,070.3
Not app.
Million
Rubles
Grain ........................................
Potatoes .....................................
Vegetables ....................................
Sunflower seeds ...............................
Meat ........................................
Milk and milk products expressed in terms of milk..
Wool ........................................
Eggs .........................................
All other .....................................
Total .......................................
300
2,190
517
94
0,702
4,009
112
1,679
1,835
18,347
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 Approved
l Sourvvm:
Quantities
For Release 2003/09/29 :CIA-RDP86lT00608 ,t,200500111t0t017, 8x(,111 estimated lit
All quantity data line from Table A-I, columns C through L,
Prices
Average realized prices of ee(rku'tJngs, derived in item a of
this table, are used in item / to v:du1' colt) uludities reasoned
in-kind by farm households, These prices are (Irr?ive(I by valuing
each type of marketing at till, appropriate prier and dividing
the sums of the values by the sum of the quantities miarket:nl
(excluding those parts of nmrketed output. that n'1' either n(m-
nloretary transactions-- tilt, return of seed grain loans--or
accounting entries---the difference between proeurenlente ex-
pressed lit physical weight and procurements exprest,ed in
accounting weight).
a. State Procurement Prices
(I) State Farm Procurement Prices
Prices for grain, potatoes, cattle, hogs, sheep and goats,
poultry, milk, and eggs are from L. N. Sineva, llentahel'nost'
sovkhoznoyo proizvodslva, Moscow, 1973, p. 72. Prices for vegeta-
bles, sunflower seeds, and wool were derived on the basis of (I)
data expressing the 197( procurement prices received by state
farms as it percent of the 1660 procurement prices realized by
these producers (E'konomika sel'skoyo khozyaystva, no. 7, 1972,
p. 33) and (2) the 1906 prices (A. NI. Yemel'yanov, Khoz,yay-
strennyy raschet v kolkhozakh i sovkhozakh, Moscow, 1968, p. 23;
the 11)(35 wool price from Ekonomika sel'skogo khozllaystva, no. 2,
1067, p. 11, is assumed applicable). The price for other meat
animals is all average of category I (aid category I I procurement
prices for rabbits (V. F. Tarasevieh an(] A. I. Gudaykin,
Spravochnik ekonomista kolkhoza i sovkhoza, Minsk, 1974, p. 1(15).
(2) Collective /'arm Procurement Prices
All prices, with the exception of that for other meat
animals (and "meat, live weight".--gee note 2, below), are front
Voprosy ekonomiki, no. 1, 1973, p. 57. An average of category I
and 11 procurement prices for rabbits was again used as a price
for other meat animals ('1'arasevich arnd Gudaykin, all. cit.).
(3) Private Producer Procurement Prices
Few actual prices paid by the state for procurements
from private producers fire available. Given the paucity of hard
facts, way attempt to estivate these prices must proceed largely
from an understanding of the rules. Under the March 19611)
l3rezhnev program for agriculture, procurement prices paid all
producers were raised, and additional payments were authorized
for above-plan procurements. The latter payments were not
extended to private producers. In the succeeding five year's
many Adjustments were made to procurement prices. In the
case of livestock products, procurement prices for poultry were
raised, effective April 1(169 for the socialized sector. In February
1070, the new poultry prices were extended to the private
sector as well. At the agricultural plenum of July 11)70, numer-
ous procurement price increases were announced for livestock
products and were made effective front 1 May 1970. Among
increases introduced were new, higher base prices for fill live-
stock products that incorporated the earlier "additional" pay-
ment into the base and in addition offered a new 50%, nadbavka
(increment) to the base price for above-plan deliveries. While
the new base prices were extended to all producers, private
producers were again excluded from receiving the new additional
payments.
Against this background, 1970 procurement prices paid
private producers for potittccs and vegetables were assumed to
be equal to procurement prices received by collective farms for
It)'%, hviow those received by colL?otive arms hr 11)71) of the
1tHH(iluptlnri t.hllt att. least 10%, of till- collective farms procluenent
price was attr'ihutllhlc to additiam(I pnyllIt'll ts for above-plane
deliveries. The procurement prier for Milk wits est.inutted on
the assumptions that (I) procurements made in the first third
of the year (that. is, before I May) were purchased by till- state
at about 90'%. of th'' procurement price rvallz1'd by collective
farms in 19111) (V. A. Karavayev and it. V. Plkul'kin, Cosurlarst-
vennyyc zayolovki i st,yl xel'skokl(azytil/xtrcnnolI produk'sii, \1os-
cow, 1971, p. 54) while procurements uutde in the retuuining
two-thirds of the year were purchased at, the new base procure-
ment price (Ekonomike sel'skall) khozyoystva, no. 7, 1972, p. 34),
and (2) one-third of the year's procurements was made in the
first third of the year find two-thirds in the remainder of the
year. Thus, (159 x 110'%) 33.3'%? + (t 90 x 6(1.7'%,) 17.1 rubles
per ton,
Procurement prices pain oriVate producers for cattle,
hogs, shop, and goats were l-stinuitcd on the ((ssunlption that,
proclu?enlcnts nude in till' first third of the year were purchased
by the sure :Lt the level of 1068 priers realize(] by private
producers fund that procurements nUde in the remaining two-
thirds of the year were purchased at about 0(1% of the procure-
ment, price realized by collective farms in the last two-thirds of
1970 (thus attributing at least 10% of the collective farm
procurement price to additional pli intents for above-,clan
deliveries--increments, as noted above, not, paid private
producers). Again the usstmlption was node that one-third
of the year's procurements was 111(011' in the first third of the
year till(] two-thirds in the remainder of the year. The poultry
price paid collective farms for their procurenlantx in 1(1(39 was
assumed applicable as the price paid private producers for the
whole of 1970, since, its note(] above, poultry priers obtaining
for the socialized sector from April 19(19 were also extended to
the private sector its of I February 1970. Since no nadhavki
existed for poultry prices in 1069, no adjustment to ill(, price
was needed. Finally, the procurement price for rabbits w?tis
again used to value other neat animals.
Sources fire its follows: for cat lie and hog priers received
by private producers in 1968, see Scriya (ken,'-nichc.skaya, n' ll.,
11)7(1, p. 33. The sheep price is estimated on !h1' assumpl ion the!.
the 10(38 sheep procurement price realized b~ collective farms
(1'oprosy ekomfa1iki, no. 8, 1970, p. ?13) Was, its in the elfe of
cattle, 130'%,-135'%, of the price pail private produere 1. o-
curernent prices paid collective farms in 19130 are from
Karaveyev find Pikul'kin, op. cit., and 1970 procur("ruent prices
paid collective farms are front Voprosy ckonomiki, no. 1, 1973,
p. 57. The rabbit price is front Tarasevich till(] (1udaykin, op. Cit.
The derivation of the livestock procurement prices paid
private producers is set out below.
Cattle:
(i) To calculate the cattle procurement price received by
collective farms in the last two-thirds of 1070:
1,534 = procurement price realized by collective farms for
the whole of 1970
1,303 = 1969 procurement price realized by collective farms
0.333(1,303) + 0.667x = 1,534
x = 1,649 rubles per ton, live weight
(ii) To calculate the 1070 procurement price paid private
producers for cattle:
907 = 1968 procurement price realized by private producers
1,649 x 90'%,, or 1,484 =estimated price paid private pro-
ducers for procurements made in final two-thirds of 1970
'0.333(907) +0.607(1,484) = 1,292 rubles per ton, live weight
36
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Hogs:
(i) To calculate the hog procurement price received by col-
lective tar ins in the last two-thirds of 1070:
1,011 = procurement price realized by collective Gums for
the whole of 1070
1,405 = 1000 procurement price realized by collective faints
0.333(1,405) +0.007x = 1,014
x - 1.073 rubles per ton, live weight
(ii) To calculate the 1070 procurement price pit!([ private
producers for hogs:
1,238 = 11)(18 procurement price realized by private pro-
ducers
1,073 x 00'%,, or 1,500 = estimated price paid private pro-
ducers for procurements nude in final two-thirds of 1070
0.333(1,238) -I 0.007(1,506) = 1,417 rubles per ton, live
weight
Sheep and yoalsr
(i) To calculate the sheep and goats procurement price
received by collective farms in the last two-thirds of 1070:
080 = procurement price realized by collective farms for
the whole of 11)70
871 = 11)00 procurement price realized by collective farms
0.333(871) + 0.607x = 080
x = 1,048 rubles per ton, live weight
(ii) To calculate the 11)70 procurement price paid private
producers for sheep and goats:
585=approximated 1008 procurement price realized b-
private producers
1,048 x 009A4, or 9,13 = estimated price ? paid Iaivate pro-
ducers for procurements made in final two-thirds of 11)70
0.333(585)+0.007(043)=824 rubles par ton, live weight
b. Collective Farm Ex-Village Market-Connni;mioH Sales Prices
The estim,ttad all-USSR collective farm ex-village
market-commission sales price for each commodity, with the
exceptions of meat (live weight), meat by type, smdtowcr
seeds, and wool, was derived for 1070 on the basis of (1) the
commodity's 1000 all-USSR collective farm market-commission
sales price (estimated by Jerzy F. hare.:' his Appendix to
"Quantitative Analysis of the Colleens, "arm Jhar'1 ??t,"
American Economic Review, Vol. LIV, no. 4, June 1001' !ted
(2) an estimated price index for the commodity derived h?
extending an official 1000-08 price index for the ommodit. in
collective farm markets of 264 cities (Narkhoz 1968, p. ("tit;
through 1070 by means of the 1008-70 increes, in the commorf-
ity's average commission sales price (Ibid., '. 022; Narkhoz
1972, p. 588).
The price for meat, slaughter weight, t `:??reby derived,
was in turn expressed on it live woi;;l:t Last.: b}? ci(' acting (I) ~~t?
total value of collective farm market-cuc'? cissioc ~:aies of I:Ia at,
slaughter weight [derived as the protium of tie gwau its sold
(1,003 thousand tons, slaughter weight--converted ho m live
weight meat-by-type data of '1 able A-I, column ,1, using
dressing percentages of Table A-3, column 2) and the slaughter
weight price I.,r collective farm aan?ket-eontatission hales of
meat (2,378 rubles per ton)] by (2) the quantity Hold express(,(]
In live weight,, 1,701 thousand tons (Table A-1, coluat .1).
Implicit here is the assumption that the till usabics- Hutt is, the
difference between live weight and slaugtiff weight - are of
zero value.
In turn, the total meat (live weight) price was differ-
entiated by type of treat on the basis of (I) collective farm
market prices received by collective farms for cavil type of meat
(live weight) In 1070 (the prices were calculated for cattle,
hogs, and poultry from ltogachev, op. cit., p. 184; approximatte(I
for sheep on the basis of the cattle price and the relationshil)
between sheep till(] cattle prices received by collie Live frills in
collective farm markets in 1009 --- and i itul'kin,
op. cit.; and set for "other meat aniauals" below the poultry
price according to the relationship between poultry and rabbit
procurement prices); (2) the relation of these prices for types of
meat to it derived average collective form market price for all
meat (calculated by weighting these live weight prices by live
weight quantities sold in collective farm markets In 1970----
Table A-1, column .f); and (3) the assumption that these rela-
tives could, in turn, be applied to the estimated all-115811.
collective farm market-commission sales price for live weight
meet.
't'he collective farm market price for sunflower seeds was
set at 50'8, above the procurement pr:. e received by collective
farms, In line with the relationship be: aaen these prices in 11)7 1
(V. 1'. I3oyev, Sovershcnstrovunillc zakupochnyklt Isen na sel'sko-
kho-'yay,stvcnnyl/a produ kisipu, Moscow, 1074, p. 155: Chernyav-
n.kiy, op. cit., p. 1(17).
The collective farm market price for wool was assumed
equal to the procurement price paid private producers.
I)cccnlru!'zcr,! Proc',, -ant Prices
Coi)ee- , , -m market prices were assu:tned applicable
for pricing t;e ,. :a:1 ?:: d procurements.
Values
Y, r the iuwtiecd products (excluding "meat, live weight"-
see note 2, below), the value for each line item, with the excep-
tion of total marketed output, is the product of the quantity
ad the price. The value of total marketed output is derived as
he suns of the parts.
1'hr total value of farm household consumption-in-kind is
estimelwi on the assumption that consumption-in-kind of the
itemized coin nmodities--grain, potatoes, vegetables, sunflower
s,'eds, meat. milk and milk products, wool, and eggs -repre-
sented at least 90% of total consumption-in-kind by farts
huiaseholds. The remaining 10?A,, or "all other" consumption-in-
,,iad, is assumed to include products such as fruits, nuts, berries,
hon,.y, mushrooms, fresh water fish, game animals and their
products, tobacco and makhorl:a, tea, and herbs.
2 'Meat, live weight" is it summary of parts 5A through 5L.
Prices ere derived by dividing the value data of part 5 by the
quantity data of part 5.
a Value data of item b for parts I through 0 of this table.
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 Approved F
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110017-8
Sources for Table 2. USSR: Household Outlays, 1970
1. Retail sales of goods for consumption
it, State, cooperative, and commission sales
State and cooperative retail sales and commission
sales to the population of goods for consumption
are estimated as follows:
Billion
Rubles
'T'otal state and cooperative retail miles, including
corn ii fission 8a1S8 ............................ 155.208
Less:
Sales to institutions ........................ 7.177
Producer goods sold to farm households...... 0.462
Building materials sold to households ........ 1.221
Kerosene ................................. 0.131
Services included in retail sales .............. 2.842
Filth rentals .............................. 0.105
Equals:
Sales of goods to the popntlation for con-
sumption ............................... 143.180
Kerosene sales are from Narkhoz 1972, p. 585.
These sales are recorded in utilities (2, c, (1),
below).
Services included in retail sales are derived by
summing official statistical handbook data for it
list of categories of "productive services" identified
by Gosplan as being included in retail trade turn-
over.* (See Gosplan SSSR, Mctodicheskiye ulca-
zaniya k soslavleniyu flosudarstvennoflo plans
razvitiya narodnogo khozyayslva SSSR, Moscow,
1969, p. 452--hereafter referred to as Meto,lichcs-
kiye ukazaniya, 1969.) These services, with the
exception of "repair and construction of housing
services" (which are accounted for in item 2, b, (3),
below, and Table 1, item 6), are reflected in repair
and personal care (2, c, (4), below). Data from
Narlclcoz 1972, p. 621, together with an estimate for
"other productive services," are as follows:
Million
Rubles
Data regarding total sales are from Nar/choz
1972, p. 577; institutional purchases, from V. I.
Nikitin, Planirovaniyc rc.znichnogo lovarooborola,
Moscow, 1972, p. 52.
Sales of producer goods to farm households are
estimated in Appendix A, item 2, b.
Building materials purchased by households are
derived as the difference between (1) total retail
sales of building materials, 1.550 billion rubles
(lumber, cement, and other construction materials,
1.500 billion rubles, and window glass, 0.050 billion
rubles-Narkhoz 1972, p. 585) and (2) estimated
purchases by institutions (0.329 billion rubles).
The latter estimate is calculated at 21.2% of the
total on the basis of the 1968-69 share of institu-
tional purchases in total retail sales of lumber and
building materials (calculated from A. Zaytseva
and G. Morvz in Vestnik statistiki, no. 5, 1971,
p. 37). ITousei;c!e purchases of building materials
are accounted for in outlays for repair and invest-
ment (2, b, (3), and 5, a, below).
Total ......................................... 2,841.5
Repair and custom narking of shoes............ 340.1)
Iiepair and custom sewing of clothing.......... 1,045.1
Appliance and instrument repair .............. 442.8
Repair and manufacture of furniture........... 100.6
Dry cleaning ................................ 95.1
Repair, custom making, and knitting of knitted
garments ................................. 120.2
Repair and construction of housing by orders
from the populatian ....................... 391. 7
Other productive services ..................... -293 . I
I Other productive services are estimated at 50%, of the
value of services not explicitly identified in Narkhoz 1972.
The share represents an extension of the 1965-07 trend in
productive services not explicitly identified, based on the data
for all services gi,?en in Narkhoz 1968, p. 664, and the data for
nonproductive services given in Narkhoz 1967, p. 773.
Film rentals arc estimated at 0.1J5 billion rubles
onthebasis of the statement by V. Rutgayzer
*The term productir' scrriccs generally includes repair and
custom manufacture, although drycleaning and dyeing, laun-
dries, and photography shops are also classified its "proiluctive."
Nonproductive services include public baths and showers,
barber and beauty shops, rental offices, janitorial services,
puwnshops, funeral services, and information bureaus.
39
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(Planovoye kluozyaystvo, no. 3, 1974, p. 110) that
film rentals represented 1.2% of tale "gross output,
of trade and public dining" in 1070. The gross
output, of trade and public dining can be derived
as 10;248 billion rubles by dividing the gross output
of trade and public dining, excluding film rentals
(10.053 billion rubles) by 98.8%. The gross output
of trade and public dining, excluding film rentals
(16.053 billion rubles) is established from at percent-
age breakdown of "total services (excluding science
and administration)" given by R,utgayrcr (Ibid.,
p. 112) and it control total for the breakdown of
71.007 billion rubles. The control total was derived
on the basis of (1) an estimate of "nonproductive
services (excluding science and administration)"
of 48.447 billion rubles and (2) the share held by
these services in "total services (excluding science
and administration)," (17.0% (Ibid.). The value of
nonproductive services (excluding science and ad-
ministration) was derived as follow,,: Itutgayzer
presents it concept of Soviet gross national produc-
tion of goods and services (national'nogo proizvodst-
va material'nykh blag i uslug (NPBU)), which is
defined as the sum of gross social product, (91.7%
of the total) and the monetary value of services in
the "nonproductive sphere" (8.3% of the total-
Ibid.). Given official statistical handbook data for
gross social product in 1970 of 644 billion rubles
(Narkhoz 1972, p. 59), NP13U can be calculated at
702.290 billion rubles (644= 91.7?/0) and nonpro-
ductive services at 58.290 billion rubles (702.290 X
8.3%). The labor and capital components of ex-
penditures on "science and administration"
amounted to 9.843 billion rubles in 1970 (Rutgayzer,
op. cit., p. 112). Thus, the value of nonproductive
services (excluding science and administration)
equals 48.447 billion rubles (58.290-9.843).
In order to avoid double-counting, film rentals,
which are included in the gross output of trade and
public dining and are also counted in money ex-
penditures of the population on movies (Ibid.,
p. 110), are here removed and are recorded in
recreation and culture (2, c, (5), below).
b. Collective farm ex-village market sales
Purchases by the population in collective farm
ex-village markets are estimated at 3.835 billion
rubles, the difference between total collective farm
ex-village market sales (4.2 billion rubles-Narkhoz
1972, p. 573) and estimated purchases by institu-
tions (0.365 billion rubles). The latter estimate
represents 8.7% of total collective farm ex-village
market sales, the share established on the basis of
(I) the claim that institutional 1)u1'CIlames in the
collective farm ex-village Market amounted to
0.342 billion rubies during the last half of 1008 11md
the first half of 1909 (Zayts~!Vlt and Moroz, 0/). cit.,
p. :38) and (2) an csthaate of total collective f11rill
Inau?k(t sales for that period of 3.1)51) billion rubles
(derived 114 the average of total sales in ;908 of :3.8
billion rubles and in 1909 of 4.1 billion rubles---
Narkhoz 190.1), p. 597).
])ties are estimated at 2.092 billion rubles, the
stun of trade union dues (1.370 billion rubles),
Communist Party dues (0.410 billion rubles), and
other dues (0.300 billion rubles).
Trad:o union dues of 1.376 billion rubles are
derived on the basis of (1) estimated trade union
membership in 1970 of 94 million; (2) an estimated
annual average wage of trade union members of
1,404 rubles-assumed to be the same its that for
workers and employees in the state sector (Narkhoz
1972, p. 510); and (3) the assumption that clues
average I'!/('j of members' annual average earnings.
The estimate of membership is based on (1)
reported membership of more than 86 million on
1 January 1968 and more than 96 million t.t the
end of 1971 (Sovetskoyc profsoyuzy, " ). 5, 1972,
p. 0) and (2) an index of state employees, calculated
from Murray Feshbach and Stephen Rapawy,
"Labor Constraints in the Five-Year Plan," Soviet
Isconomic Prospects for the Seventies, Joint Economic
Committee, US Congress, Washington, 1973, p.
508-509. The dues rate is that set for earnings of
70 rubles per month and higher (Spra.vochnik
profsoyuznngo rabotnika, 1972, p. 463). Though
students and some other groups pay it lower rate,
this source of overestimation is offset by an under-
estimation resulting from the failure to include
initiation fees that new members must pay.
Communist Party clues of 0.416 billion rubles are
derived on the basis of (1) estimated total member-
ship in the Party in 1970 of 14,192,174-the average
of membership figures for 1 January 1970 and
1 January 1971 given in Partiynaya zhizn', no. 14,
1973, P. 9-10; (2) an estimated annual average
wage of Party members of 1,466.4 rubles-assumed
to be the same as annual average earnings of em-
ployees in state and economic administrative
organizations, cooperatives, and social organiza-
tions (Narkhoz 1972, p. 517); and (3) reports that
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dues an-ount to 2% of meall(rs' annual ttverttge Op. cit.). The midyear stock of turban private and
('tu'nings, rural housing Is (Ierivetl on the basis of (1) end-
Other duos --Konnsonlol, the Voluntary Society
for A isisIing the Ai in,y, Air Force, and Navy
(DOSAAh'), and many others- -cannot be estimated
directly find lure arbitrarily approXi1IILL((I at 9.300
billion rubles.
b. llousintl
(1) 't'otal cash rents pit!(] for urban public
housing are estimated at 1.001 billion rubles, the
sum of cash rent on turban public housing (1.016
billion rubles) find ad(litiomu charges ptti(I by
members of housing cooperatives for maintenance
(0.075 billion rubles). Cash rent on urban public
housing is estimated as the product of the total
midyear stock of urban public housing (0.690
billion square -neters of living spac(!) and the aver-
age rental rate per square meter of living spite(,
(1.40 rubles per year-I. N. Shutov, Lichnoye
potrcbleni?pc pri solsialismc, Moscow, 1972, p. 170).
The midyear stock of turban public housing is
derived on the basis of (1) end-year stocks in
1960 and 1970 measured in square meters of
"useful space"* (Narkhoz 1970, p. 546) and (2)
the coefficient of two-thirds for converting "useful
space" to "living space (Willard S. Smith, "Ilous-
ing in the Soviet Union-Big Plans, Little Action,"
Soviet Economic Prospects for the Seventies, Joint
Economic Committee, US Congress, Washington,
197:3, p. 406). Additional charges paid by members
of housing cooperatives for maintenance are esti-
mated as the product of the midyear stock of
cooperative housing (0.029 billion square meters
of living space) and the charge per square meter of
living space (2.59 rubles-calculated from Smith,
op. cit., p. 412, 423).
(2) Imputed net rent on urban private and
rural housing is estimated at 1.080 billion rubles,
the difference between gross rent (1.642 billion
rubles) and purchased repair by occupants of urban
private and rural housing (0.562 billion rubles-
2, b, (3), below). Imputed gross rent on urban pri-
vate and rural housing is estimated as the product
of the midyear stock of urban private and rural
housing (1.125 billion square meters of living space)
and the average rental rate for state housing (1.46
rubles per square meter of living space-Shutov,
*The term useful SpacC, IN used in Soviet statistics, includes
living rooms, bedrooms, kitchens, baths, int,.rior halls, and
closets but excludes external halls, stairways, and elevator
shafts and the space occupied by walls, Living space refers to
living rooms and bedrooms.
year stocks in 19(11) and 1970 Inva"ilred ill square
-neters of useful space (Urban front Narkhoz 1970,
p. 1346; rural from Smith, op. cit., p. 120) and (2)
the coefficient for converting useful space to living
space of two-thirds for urban stock and three-
fourths for rural stock (Ibid., p. 406).
(3) Expenditures by the population on repair
are estimated ILL 1.258 billion rubles, the stint of
outlays by tenants in urban public housing (0.696
billion rubles) and outlays by occupants of urban
private and rural housing (0.502 billion rubles).
Each estimate is derived its the product of the
appropriate midyear stock of living space (urban
public stock from 2. b, (1), above; urban private
and rural front 2, b, (2), above) and an annual
repair expenditure by tenants of state housing of
I ruble per square meter of living space (estimated
by B. Kolotilkin in Vopros?1 ekonontiki, no. 9,
1972, p. 45) and an assumed annual repair outlay
by occupants of urban private and rural housing
of one-half that, or 0.5 ruble per square meter of
living space. Of the total outlays on repair of 1.258
billion rubles, 0.195 billion rubles are estimated to
have been spent on state-provided services--that
is, roughly half of outlays on "construction and
repair of housing" as reported in Narkhoz 1972,
p. 621-and the balance, 1.063 billion rubles, on
repair services provided by private persons. Of the
latter, 90%, or 0.957 billion rubles, is arbitrarily
assumed to be wages or private incomes from
housing repair services.
c. Other services
(1) Utilities expenditures of households of 3.478
billion rubles are the sum of kerosene purchases of
0.131 billion rubles (1, a, above) and outlays of
3.347 billion rubles. The outlays represent the
difference between total household outlays in 1970
on "housing-communal" services (4.6 billion ru-
bles-V. Ye. Komarov and U. G. Chernyavskiy,
Dokhody i potrebleniye naseleniya SSSR, Moscow,
1973, p. 209) and the suns of household payments
for (1) cash rent (1.091 billion rubles-2, b, (1),
above) and (2) outlays for hotels and the like
(0.162 billion rubles). The latter deduction ~:s
require(, because Komarov and Chernyavskiy use
the expenditure classification system employed by
Gosplan in calculating the annual "balance of
incomes and expenditures of the population." The
Gosplan category "communal services" includes
both utility payments and the population's outlays
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 on hotels, dormitories, and sialll-tr facilities, (See
f
Mclodirheskiye -(kazatei//a, I9(N), p. 5135,) It- the
absence of reporte(I (IaLLa, onLlays on hotels -u'e
arbitrarily estimated On the assu-nption that out-
lays for wages and social insurance represent two-
thirds of total current outlays, The wage bill is
esti-tnLLe(I at 0,103 billion rubles, the product of
employment in hotels (91,000) and the annual
average wage reported for "housing-communal
economy" (1,134 rubles). The employment figure
is obtained by projecting to 1970 an estimate given
for 1969 (by Stephen Rapawy, Comparison of US
and USSR Civilian Employment in Government:
1950-1969, US Department of Commerce, Bureau
of Economic Analysis, International Population
Reports Series P-95, no. 69, April 1972,
p. 17).
The average wage is from Narkhoz 1972, p. 517.
Social insurance deductions are estimated at 0.005
billion rubles, 4.7% of the wage bill-the rate for
the communal economy (Spravochnik partiynopo
rabotnika, vypusk vos'moy, Moscow, 1968, p. 440,
hereafter referred to as Spravochnik partiynogo
rabotnika).
(2) Transportation outlays are given in Komarov
and Chernyavskiy, op. cit., p. 209.
(3) Communications outlays are given in
Komarov and Chernyavskiy (Ibid.).
(4) Repair and personal care expenditures of
households, excluding their outlays for housing
repair, are estimated at 4.674 billion rubles, the
sum of state-provided "everyday" services (3.650
billion rubles), privately provided services (0.937
billion rubles), and "other services" (0.087 billion
rubles). Data for state-provided "everyday" serv-
ices, excluding housing construction and repair,
are from Narkhoz 1972, p. 621. Privately provided
services, excluding housing, are derived as the
difference between an estimate of total private
services of about 2.0'billion rubles (V. Azar and I.
Pletnikova, Ekonomicheskiye nauki, no. 11, 1973,
p. 45) and household purchases of privately pro-
vided repair of housing of 1.063 billion rubles (2, b,
(3), above). Wages or private income from these
privately provided services, excluding housing, are
arbitrarily assumed to amount to 90%, or 0.843
billion rubles. Outlays for "other services" are
defined in the "balance of incomes and expenditures
of the population" to include payments for process-
ing agricultural products, transport fees charged by
collective farms, fees for khozraschet training
courses, and legal and consultation fees. These
outlays are derived as the difference between house-
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holds' expenditures for "otbet' services" of 1.7
billion rubles - bel1(ve(I to Include eertaiu education
and health outlays '1(onuLrov and Chernyavskiy,
op, cit., p. 209) -Ln(1 that part of these outlays
counted elsewhere in the accounts, The outlays
counted elsewhere include production services
purehILsed front collective farms (0.100 billion
rubles----see Appendix A, item 2, h) and fees paid
by the population for certain education till(! health
fill(] physical culture services (0.971 billion rubles
an(] 0.592 billion rubles, respectively--see 2, e, (6)
and 2, c, (7), below).
(5) Recreation and culture expenditures of
households are estimate(] at 2.647 billion rubles,
the st--n of (1) outlays for entertainment (1.500
billion rubles-Ibid., p. 209), (2) expenditures on
"unorganized leisure" (0,700 billion rubles-Azar
and Pletnikova, op. cit., p. 44), and (3) outlays for
passes to resorts and the like (0.447 billion rubles).
Outlays for "unorganized leisure" consist of ex-
penditures on hotels, motels, and the like (0.162
billion rubles-2, c, (1), above) and payments to
private persons for room rentals (0.538 billion
rubles-of which 90%, or 0.484 billion rubles, is
arbitrarily assumed to be wages or private income
from such services). Outlays for passes to resorts
and the like are derived its the difference between
total estimated outlays of the population on public
health and physical culture (0.542 billion rubles-
2, c, (7), below) and an estimate of fees paid by
parents for children's nursery care (0.095 billion
rubles). These fees are calculated as the product of
the number of children in nurseries (1,181,500-
Narkhoz 1972, p. 693) and the annual charge per
child (80 rubles-Solsialislicheskiy Crud, no. 6,
1971, p. 9).
(6) Education outlays of households are esti-
mated. at 1.064 billion rubles, the sum of outlays for
private services (0.093 billion rubles) and fees for
public education (0.971 billion rubles). In the
absence of data on the substantial private activity
that is known to exist in both education and
health, outlays for private services are arbitrarily
estimated at 1 % of the state wage bill for education.
(For the education wage bill, see Appendix D, item
1, a.) Fees paid by the population for public educa-
tion are estimated from Rutgayzer's data, which
show that 5% of "total education expenditures"
were paid by the population in 1970 (Rutgayzer, op.
cit., p. 114). "Total education expenditures" used
by Rutgayzer are calculated at 19.422 billion rubles,
27.1 % (Ibid., p. 112) of his "total services (exclud-
42
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lug seienee and adlniniHtration)"- esthnlLted ILL
71,6117 billion rubles in 1, it, above,
(7) Health outlays of households are estimated
at 0.148 billion rubles, the suet of outlays for pri-
vate services (0.053 billion rubles) and fees for
public health (0.095 billion rubles). Outlays for
private services are arbitrILrily estimated at 1'%0
of the state wage bill for health, (For the wage bill,
see Appendix 1), item 1, c.) That part of fees paid
by the population for public health services re-
corded here is the difference between (1) total
fees paid by the population for public health and
physical culture (0.542 billion rubles) and (2) fees
paid for resort passes and the like (0.447 billion
rubles), which are recorded in recreation and
culture (2, c, (5), above). Total fees paid by the
population for public health and physical culture
are derived from Rutgayzer's data, which show that
60/0 of "total health and physical culture" expendi-
tures were paid by the population in 1970 (Ibid.,
p. 114). "Total health and physical culture expendi-
tures" used by Rutgayzer are calculated at 9.030
billion rubles, 12.6% (Ibid., p. 112) of his "total
services (excluding science and administration)"--
estimated at 71.667 billion rubles in 1, a, above.
3. Consumption-in-kind
a. Farm consumption-in-kind
Appendix A, item 2, c, M.
b. Military subsistence
Appendix A, item 3, b.
4. Total outlays for consumption
Derived as the sum of items 1, 2, and 3.
a. Private housing construction
The value of private housing construction is
estimated at 2.029 billion rubles by adjusting
official handbook data on the value of private
housing construction (1.636 billion rubles-Narkhoz
1972, p. 486) upward by 24% in order to express
the official series in 1969 estimate prices (Smith,
op. cit., p. 418).
b. harm irtvestntent-in-kind
Appoudix A, item 2, c, (2).
6. 't'otal outlays for consumption and investment
Derived as the stun of items 4 and 5.
7. Transfer outlays
it. Net savings
Net savings by households of 9,720 billion rubles
are the stun of (1) net additions to savings deposits
between end-1909 and end-1970 (8.203 billion
rubles-Narkhoz 1970, p. 562), (2) net bond
purchases (0.470 billion rubles-Ministerstvo
finansov SSSR, Byudzhetnoye upravleniye,
Gosudarstr?nnyy byudzhet SSSIZ i byudzhety soyuz-
nykh respublik 1966-1970, statisticheskiy sbornik,
Moscow, 1972, p. 12, hereafter referred to as
Gosudarstvennyy byudzhct 1966-1970), and (3) net
insurance premiums (1.047 billion rubles). The
latter estimate is derived as the difference between
premiums paid by the population (1.827 billion
rubles-Pinansy SSSJ?, no. 4, 1972, p. 3) and
indemnities received (0.780 billion rubles-Finansy
SSSR, no. 1, 1971, P. 10).
b. Direct taxes
Gosudarstvennyy byudzhet 1966-1970, p. 12.
c. Other payments to the state
Other payments to the state are esdimated at
0.587 billion rubles, the sum of net state revenues
from lotteries (0.254 billion rubles-Ibid.) and
other state budget revenue from the population
(0.333 billion rubles). Other state budget revenue
from the population is derived as the difference
between total state budget revenues from the
population (13.844 billion rubles-Ibid.), and the
sum of (1) collective farm market fees paid. by
households (0.050 billion rubles-Appendix A, item
2, b); (2) net bond purchases (0.470 billion rubles-
7, a, above); (3) direct taxes from the population
(12.737 billion rubles-7, b, above); and (4) net
lottery ticket purchases (0.254 billion rubles-
aluove).
8. Total outlays
Derived as the sum of items 6 and 7.
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Sources for Table 3. USSR: Public Sector Incomes, 1970
1. Net income retained by organizations
it. Retained income of collective farms
Retained income of collective farms is estimated
at 7.186 million rubles, the difference between total
net income of collective farms in 1970 of 8.097
billion rubles (L'konomika sel'skogo khozyaystva, no.
7, 1972, p. 34) and the sum of (1) income taxes
(0.066 billion rubles-Gosudarstvennyy byudzhet
1966-1970, p. 12); (2) premia paid to collective
farm members from profits (0.225 billion rubles-
Appendix A, item 2, a, (1)); and (3) other taxes
(0.020 billion rubles). Other tase': are estimated at
tl:e level of these payments in 1999 as derived from
data regarding collective farms' total tax payments
made from net income (N. F. Panchenko, et at.,
Industrial'noye razvitiye i effektivnost' kolkhoznoco
proizvodstva, Moscow, 1971, p. 30; G. G. Badir'yan,
Ekonomika sotsialisticheskogo sel'skogo khozyaystva,
Moscow, 1971, p. 463) and their payment of
income taxes alone (Gosudarstvennyy byudzhet
1966-1970, p. 12).
b. Retained profits of state enterprises
Retained profits of state enterprises are estimated
at 26.481 billion rubles, the difference between net
profits (85.668 billion rubles-Narkhoz 1972, p.
697) and the sum of deductions to the budget
(54.157 billion rubles--Gosudarstvennyy byudzhct
1966-1970, p. 11) and bonuses paid from profits
(5.030 billion rubles). Official handbook data for
profits include profits allocated to various incentive
funds from which bonuses are paid to employees.
Since these bonuses are included in the state wage
bill, they are here deducted in order to avoid
doublecounting. Their estimate is derived as the
sum of bonuses paid from "material incentive
funds" that were formed under the rules of the
1965 economic reform and bonuses paid from two
additional profits-financed incentive funds-the
"fund for premia for victory in socialist competi-
tion" and the "fund for producing consumer goods
from waste materials."
Bonuses paid from material incentive funds are
estimated at 4.730 billion rubles, 43% of enter-
prises' total incentive funds of 11.000 billion rubles
(Narkhoz 1972, p. 721). The share is that calculated
for industrial enterprises based on their 1970
expenditures from the material incentive fund
(3.739 billion rubles) and their total incentive funds
(8.700 billion rubles-Ibid., p. 722).
Bonuses paid from the other incentive funds
financed from profits are estimated at 0.300 billion
rubles on the basis of total expenditures from each
fund--0.334 billion rubles from the first, the "fund
for premix for victory in socialist competition";
0.275 billion rubles from the second, the "fund for
producing consumer goods from waste materials"
(Ibid., p. 721)-and the assumption that expendi-
tures for bonuses constituted 65% of total outlays
of the first and 30% of total outlays of the second.
These shares are in line with those established for
1967 when: (1) premix paid from the first fund
accounted for 0.175 billion rubles, or 65.3% of the
tot,.,! fund of 0.268 billion rubles (Narkhoz 1967,
p. 880) and (2) estimated premia paid from the
second fund, 0.047 billion rubles (approximated by
analogy with the first fund, at two-thirds of the
joint, entry for "premia and social-cultural meas-
ures"), represented 27.8% of the total fund (0.169
billion rubles-Ibid.).
c. Retained profits of consumer cooperatives
Retained profits of consumer cooperatives are
estimated at 0.794 billion rubles, the difference
between net profits (1.321 billion rubles-Narkhoz
1972, p. 697) and the sum of (1) profits distributed
to cooperative members (0.027 billion rubles-
Appendix A, item 1, b); (2) income taxes (0.462
billion rubles); and (3) premia paid to employees
(0.038 billion rubles). Income taxes are calculated
at 35% of cooperatives' profits, the rate given in
V. V. Lavrov, et at., Finansy i kredit SSSR,
Moscow, 1972, p. 179.. Premia paid to employees
are arbitrarily estimated at one-half of incentive
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funds of cooperatives of 0,075 billion rubles
(Narlchoz 1972, p. 720),
d. Retained profits of other organizations
Retained profits of other organizations (mainly
"social organizations," such as trade unions) are
estimated at 0.321 billion rubles, the difference
between net profits (0.428 billion rubles) and
income taxes (0.107 billion rubles). Not profits of
other organizations are estimated as four times the
income taxes paid by these organizations, given it
tax rate of 25% (Lavrov, op. cit.). Income taxes
paid by other organizations are calculated as the
difference between total income taxes paid by
cooperatives ani other enterprises (0.569 billion
rubles-Gosudarstvennyy byudzhet 1966-1970, p.
12) and income taxes paid by consumer coopera-
tives (0.462 billion rubles-1, c, above).
2. Charges to economic enterprises for special
funds
a. Social insurance and social security
Total charges to economic enterprises for social
insurance and social security are derived as 9.436
billion rubles, the sum of (1) state budget receipts
from social insurance charges (8.300 billion rubles-
Narkhoz 1972, p. 724), (2) collective farm payments
Sato the All-Union Social Insurance Fund for
Collective Farmers (0.356 billion rubles), and (3)
collective farm payments into the All-Union Social
Security Fund for Collective Farmers (0.780
billion rubles).
Collective farm, payments into the All-Union
Social Insurance Fund for Collective Farmers are
derived as 0.356 billion rubles, 2.4% of the esti-
mated total labor pay fund-14.840 billion rubles,
including money pay (14.040 billion rubles) and
in-kind payments valued in procurement prices
(0.800 billion rubles). (See K. S. Kartashova,
Finansy, kredit i raschety v kolkhozakh, Moscow,
1970, p. 75.) Official data put the labor pay fund
at 15.0 billion rubles, including money pvy (14.040
billion rubles) and in-kind payments valued in
state retail prices (0.960 billion rubles-Appendix A,
item 2, a, (1)). The in-kind payments were adjusted
to a procurement price basis by using the relation-
ship between RSFSR state retail and procurement
prices for grain. (See G. Ya. Kuznetsov, Tovarnyye
otnosheniye i ekonomicheskiye stimuly v kolkhoznom
proizvodstve, Moscow, 1971, p. 263.)
Collective farm payments into the All-Union
Social Security Fund for Collective Farmers are
estimated at 0.780 billion rubles, 4%? of collective
ftu?ms' gross income of the preceding year (Kartu-
shova, op. cit., p. (19; Narlchoz 1970, p. 383).
b. Education; research
Charges to enterprise costs to finance education
(worker training) and research are derived as 2.978
billion rubles, the sum of estimated charges to cost
for (1) education (0.400 billion rubles) and (2)
research (2.578 billion rubles). The education al-
lowance is in line with 13ecker's estimate of 0.250
billion rubles in 1960 and 0.300 billion rubles in
1964. (See Becker, Soviet National Income, 1958-
1961j, National Accounts of the USSR in the
Seven Year Plan Period, op. cit., p. 366.) Charges to
enterprise costs to finance research are arbitrarily
estimated at half the difference between total
outlays on science from the state budget and other
sources (11.7 billion rubles-Narkhoz 1972, p.
726) and the state budget allocation to "science"
(6.543 billion rubles-Gosudarstvennyy byudzhel
1966-1970, p. 25).
3. Taxes and other payments to the budget
a. Tax on income of collective farms
See 1, a, above.
b. Tax on income of consumer cooperatives and
other organizations
The entry of 0.569 billion rubles is the sum of
income taxes of consumer cooperatives (0.462
billion rubles-1, c, above) and income taxes of
other organizations (0.107 billion rubles-1, d,
above).
c. Deductions from profits of state enterprises
Deductions to the budget from profits of state
enterprises are estimated at 53.110 billion rubles,
the difference between total deductions to the
budget from profits of state enterprises (54.157
billion rubles-1, b, above) and households' in-
surance premiums net of indemnities (1.047 billion
rubles-Appendix B, item 7, a). A major portion
of net receipts of Gosstrakh, the state insurance
organization, is paid into the state budget as
profits. (See Becker, op. cit., p. 367.) Since net
insurance premiums are included in transfer receipts
(8, below), they are here deducted in order to
avoid doublecounting.
d. Turnover tax
Gosudarstvennyy byudzhet 1966-1970, p. 11.
46
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AP
.f,?
c. Al is ancoits changes ing in the rent charged for the use of nonresidential
Niliscellaneous charges are derived its 22.792
billion rubles, the stun of forest income (0.41)2
billion rubles----/bid., p. 12), rental income from
property of local soviets (0.063 billion rubles---
Ibid., P. 78), price markups on radio and television
sets paid to the budget to finance broadcasting
(0.510 billion rubles-Azar and Pletnikova, op. cit.,
p. 44), local taxes and fees paid by enterprises
(0.451) billion rubles), and other state budget
revenues (21.268 billion rubles).
Local taxes and fees paid by enterprises are
derived as the difference between total local taxes
and fees (0.842 billion rubles-Gosudarstvennyy
byudzhet 1966-1970, p. 101) and local taxes and
fees paid by the population (0.383 billion rubles).
The population's share is derived its the difference
between total state budget revenues from the
population and the total of the identified revenues
from the population (Ibid., p. 12).
Other revenues are estimated, following the
procedure used by Becker (op. cit., p. 367--368), as
75% of residual state budget revenues "from the
socialist economy." Residual budget revenues from
the socialist economy are derived as 28.358 billion
rubles, the difference between total state budget
revenues from the socialist economy (142.859 billion
rubles-Gosudarstvcnnyy byudzhet 1966-1970, p.
11) and the sun of (1) the identified sources of
these revenues (113.467 billion rubles-Ibid., p.
11-12), (2) rental income from property of local
soviets (0.063 billion rubles-above), (3) price
markups on radio and television sets paid to the
budget to finance broadcasting (0.510 billion
rubles-above), and (4) local taxes and fees from
enterprises (0.459 billion rubles-above).
The total composition of residual budget revenues
"from the socialist economy" is not known. The
following listing is compiled mainly from Becker,
op. cit., p. 367-368, and Daniel Gallik, Cestmir
Jesina, and Stephen Rapawy, The Soviet Financial
System-Structure, Operation, and Statistics, US
Department of Commerce, Bureau of the Census,
International Population Reports Series P-90, no.
23, June 1968, p. 131-133, 163:
(1) Special purpose funds-(a) redistributions of
local industry profits, (b) deductions from compul-
sory property insurance payments to finance prop-
erty protection measures, (c) a highway construc-
tion and maintenance fund for republic and oblast
highways, (d) housing capital repair funds originat-
(9Uarters in apartment houses (stores, storage areas,
c)1' shops), and (e) deductions from prices of
petroleum and natural gas to cover e`utrges for
geological prospecting work;
(2) Receipts of budgetary institutions;
(3) Customs duties paid by import organiza-
tions and by private citizens rece?,ving goods
directly from abroad;
(4) Accounting profits of foreign trade organiza-
tions (we assume that accounting profits encompass
the losses sustained from exports and the profits
earned on imports as it result of the difference
between domestic and foreign trade prices);
(5) Income from the sale of state property
such as property confiscated by the courts and
unclaimed shipments;
(6) Fees charged by the state for automobile
inspections; registration of trademarks; inspection
of weights, standards, and measures; fishing
licenses; and notary and judicial services; and
(7) Amounts recovered from pilferage and from
illegal price changes, overdue obligations paid,
fines, and other irregular payments to the budget.
The category may also include the value of sales
from state reserves, repayments of foreign itid
extended by the USSR, and unexpended budget
funds carried over from previous years.
In the listing above only items (5), income from
the sale of state property, and (7), amounts
recovered-together with the value of sales from
that portion of state reserves produced in former
years and sold in the current year, repayment of
foreign aid extended in prior years, and unexpended
budget funds carried over from previous years-
clearly represent income not currently earned.
Item 4 (accounting profits of foreign trade organiza-
tions) should be excluded if GNP is to be a measure
of value added in domestic productive activity.
(See Franklyn D. Holzman, Foreign Trade Under
Central Planning, Harvard University Press, Cam-
bridge, 1974, P. 337-338.) On the other hand, if
the goal is to measure expenditure on domestically
produced output in established prices, the losses
arising from buying export goods at domestic
prices and selling them abroad at lower prices
should be subtracted from value added by sector
of origin (Ibid.). Since it is not possible to estimate
the share of the items that we want to include in
the residual budget revenues, three-fourths of the
residual is arbitrarily assigned to current charges.
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'I'he allowance for subsidized losses, n.e.e., of
19.454 billion rubies is the stint of stet' budget
subsidies to industry (I4,3:3 billion rubles), agricul-
ture (1.342 billion rubles), trade (0.400 billion
rubles), services (3.202 billion rubles), and other
branches of material production (0.120 billion
rubles). The assumption is made that the official
statistical handbook series on net profits (as in
item 1, b, above) accounts for operating losses of
khozraschet enterprises and organizations, as well
its state housing. (See Narkhoz 1972, p. 794.)
Subsidies to industry consist of subsidies on
government purchases of agricultural pr(ducts.
These subsidies, which are estimated in Table C-1
at 14.33 billion rubles, arise when agricultural
products purchased by government procurement
organizations front farm producers ac various
prices are resold to the processing sector and trade
organizations at accounting prices that fall below
the procurement prices. The difference between
the government purchase price and the accounting
price at which the processing industry enters the
product in its production costs is financed from the
budget and is considered a subsidy to industry.
(See Finansy SSSR, no. 5, 1974, p. 45.) While
allocation of the whole of these subsidies to industry
results in some overstatement of industrial sub-
sidies, since some part of the subsidized agricultural
products passes directly into the trade net without
industrial processing, the extent of the overstate-
ment is considered snmll.
Subsidies to agriculture covering the difference
between wholesale prices and lower prices charged
farm producers for certain industrial products are
estimated at 1.342 billion rubles, the sum of (1)
subsidies on purchases of mineral fertilizer, tractors,
trucks, agricultural machinery, and land construc-
tion machinery, estimated at 0.868 billion rubles-
midway between the 1969 flan for these subsidies
of 0.737 billion rubles (Finansy SSSR, no. 1, 1969,
p. 12) and the 1971 Plan of I billion rubles (Finansy
SSSR, no. 10, 1970, p. 6)-and (2) subsidies on
purchases of processed feeds, estimated at 0.471
billion rubles. The latter estimate is based on the
level of subsidy per ton of processed feed of 20
rubles (V. N. Semenov, Rol' finansov i kredita v
razvilii sel'skogo khozyaystva, Moscow, 1973, p. 261)
and the assumption that agriculture purchased the
whole of 1970 industrial output of processed feeds
of 23.7 million tons (Narkhoz 1972, p. 174-175).
Subsidies for trade are estimmted budget allocat-
tions to covet' losses incurred by retail trod(' enter-
prises when they are permitted to sell slow-uaoving
goods tit, reduced prices. The estimate for 11)70 of
0,4011 billion rubles is set, somewhat below the
annual average level that can be established for
these allocations given their 1971 -73 total of 1.3
billion rubles (Finansy 8881t, no. I, 11)74, p. 7).
Subsidies to services of 3.262 billion rubles are
the sum of subsidies for housing maintenance
(2.036 billion rubles) and alt, recreation, and physi-
cal culture (1.176 billion rubles). Subsidies for
housing maintenance of 2.086 billion rubles are
derived as the product of the midyear stock of
state housing, 1.043 billion square meters of useful
space (calculated from end-year data in ! orkhoz
1970, p. 5.16), and an estimated state subsidy of 2
rubles per square meter. The subsidy rate is based
on the statement that the state spends :3 rubles per
square meter for -mtintemtnee of state housing,
one-third of which is covered by rent ( I'oprosg
clconontiki, no. 2, 1973, p. 41). The rate is taken to
refer to useful rather than living space.
Subsidies for art, recreation, and physical culture
of 1.176 billion rubles are the sum of state budget
allocations to art and radio broadcasting (0.628
billion rubles-A'arkhoz 1972, p. 727) and estimated
subsidies for recreation and physical culture (0.518
billion rubles). Subsidies for recreation and physical
culture are derived as the sum of state budget
outlays for physical culture (0.047 billion rubles-
Ibid.) and estimated subsidies for recreation (0.501
billion rubles), representing support from social in-
surance funds for resort passes and institutions
providing resort services. This support is the sum of
(1) direct outlays from social insurance funds for
resort passes (0.343 billion rubles-derived as 43.4%
of the full cost of passes to resorts of 0.790 billion
rubles) and (2) subsidies from social insurance
funds to institutions providing resort services (0.158
billion rubles-derived as 20% of the full cost of
passes of 0.790 billion rubles). The shares are from
Azar and Pletnikova, op. cit., p. 44. The full cost of
passes is derived on the basis of the population's
outlays for passes to resorts and the like (0.=117
billion rubles-Appendix B, item 2, c, (5)) and their
share in the full cost (56.6%-100% less the share
covered by social insurance funds, 43.4%, above).
Subsidies to other branches of material produc-
tion are the reported state budget allocations to
the press (0.120 billion rubles-Narkhoz 1972,
p. 727).
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5. Consolidated total charges against current vettltl111e fowls v I olkhozalch i sovkhozulch, Moscow,
product, net of depreciation 1972, p. 04).
Derived as the 8(1111 of items 1 through 4. 7. Consolidated total charges against current
0. Depreciation
Depreciation of 31.827 billion rubles is the sum
of amortization (10(ItletionM in state-cooperative
organizations (29.105 billion ,'tlbles- -Ibid., p. 723)
and amortization deductions in collective farits
(2.722 billion rubles---Z. 1, Eravehenko, Proizvodsi-
product
Derived its the suln of items 5 and (1.
8. Transfer receipts
'Appendix 13, item 7.
9. Consolidated net income
USSR: Subsidies on Government Purchases of Agricultural Products,' 1969-71
Billion Rubles
Total(2 .................................
7.88
14.33
15.57
Meat ...............................
5.301
8.74'1
9.83
Milk ................................
1 .38
3.12')
3.22
Wool ...............................
Negl.
0.14 7
0.15
Eggs ................................
Not app.
0.03 7
0.04
Grain ...............................
0.568
0.71
0.64
Potatoes ............................
0.08
0.09
0.0911
Vegetables ...........................
0.11
0.139
0.2111
Sugar beets ..........................
0.1011
0.11
0.10
Sunflower seeds and other oil seeds .... .
Hemp, flax, Icenaf, hides .............
Cotton ..............................
1.19
1 Estimates of the subsidies involved in government purchases
of agricultural products from socialized and private agriculture
at one set of prices and their resale to industry and trade
organizations at lower prices were derived for each product on
the basis of (1) the level of the product's subsidy in it base
year, (2) the assumption that the subsidy would grow as did
procurements of the product, and (3) additional adjustments to
the subsidy level based on revisions in procurement prices or in
wholesale prices.
The base year for SUb.biles is 1061) for grain, sugar beets, and
oil seeds; it is 11)70 for meat, milk, wool, eggs, and cotton-
reflecting the July 1970 Plenum increases in procurement prices
for livestock products; Lard it is 1071 for potatoes and vegeta-
bles. An index of procurements was calculated for each product
from data in official statistical yearbooks. An index of sunflower
seeds procurements was used to move the combined entry for
all oil seeds and hemp, flax, and the like. Indexes computed
from aggregate procurement data are considered acceptable
since, for each product, both shares of procurement from the
various producers and the relationships among the prices paid
each producer have remained stable since the year chosen its
the base for the product's index of procurements.
2 Derived as the sum or the parts.
:1 Ftnansy SSSR, no. 3, 1069, p. 10. A total of 5.3 billion
rubles, given in the source, implies it subsidy of 452 rubles for
each of 11,724,000 tons, live weight, procured in 1900
(Scl'skoyc kho:yaystvo, I1)T1, p. 75).
-1 Derived as the product of the number of tons procured in
1970 (12,595,00(1 tons, live weight.--A'arkho: 1972, p. $711) and
the implied level of subsidy per procured (on, live weight (6161
rubles). The littler is derived by dividing the 1971 Phan meat
preeul'II11e11ts Subsidy (0.3 billion rubles --/'iuansy SSS11, no. 5,
1071, p. 65) by the 1071 Plan for meat procurements (13.1
million tons, live weight- Caxudarxlt'crrntlll pyalilclni f/ plan
1971- 1975, p. 349).
11 Derived as the product of the number of tons procured in
1001) (43,782,000-Sel'skoye khozyayelra, 11171, p. 70) and the
level of subsidy per procured ton (31411 rubles). The hatter is
the difference between the 11)(11) average procurement price of
101 rubles per ton realized by all producers and the accounting
price of 12(1.51 rubles at which the processing industry entered
the milk in its production costs. The average procurement
price is based on quantities procured and 10(10 prices paid
each producer (I3adir'ynn, op. cit., p. 36, 48); the accounting
price is from 1. G. liudryavtnova, Tsenoohra:oraniyc pishcheroy
prornyxhlonnasti, Moscow, 1972, p. 20.
(I Derived as the product of the number of tons procured in
11)70 (45,681,000-Narkhoz 1972, p. 380) and the implied level
of subsidy per procured ton (08.32 rubles). The latter is derived
by dividing the 11(71 Plan milk procurements subsidy (3.3
billion rubles-/'inansy SSSR, no. 4, 1971, p. 65) by the 1971
Plan for milk procurements (48.3 million tons--Gosudarsl-
rcnnyy pyatilctniy plan 1971-1975, p. 349).
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oat fil I I , om to avln'fig(I level of theme pltylllentM (1H cfil('mlIlted pPr Lou of pro-
ealHtlltg H(II)))Id!eo (1) pI'oelli'elll('1)tH of livestock 1)1'mduleLH ('('stilt- (millid gl'Idil (InlH' 1)111s Ilh0Ve-plan I)roetll'Plllents--A, 'I'(1,
'tug from the
'
procurement In
ice Increases of 1117(1 (4, l) pillion
rubles.. Selnenov, op, cit., p, 2,13), (2) that, pan, of the addition
attributable to meat and milk (4,73 billion rubles- derived
below), and (3) the arbitrary nlIooaLion of the reuullnder (0,17
billion rubles) botwecn wool find eg118 by Hhlm'as Of foul'-fifths
1111(1 ono-fifth, respectively.
The Ml(IILI(Ill CO the existing Hllhsi(Iy IH
tilt(' mill( as (1x11 (S7u-S ),
Q?yuantity procured In tens
S??HuboIdy in rubles par procured
Q711= 12,505,000 (note .I, above)
S711-(104 (note 4, above)
Sa11='3132 (note :3, ((hove)
(1711-'451,081,000 (note 11, above)
S711?(38,32 (note (1, above)
S(Iu"3L40 (note 13, nbovc)
(1711 (S7u- Snu)
for meat = 3,013
for milk = 1.68
Total = 4,73 billion rubles
in 1969 (135,540,000---Sel', kol/c khnzt/allsivo, 11)71, p, 513) an(I an
allowance of 10 rubles per ton to cover budget-financed pay-
menLH for above-plan procurements. This is the 1(10(1-70 anuu11l
IGunlnnky, cl ol? editors, 1 konar(1(k)) zernocot/o kh0z1lnll,lea,
Moscow, 11)7(1, p. 11)0; Venlnik slalisliki, no. (), 11173, p. 17).
A'konarnika sel'lkopa khozlp)llslwl, no, 5, 1972, p, 103,
10 Base(' all ttIl ILI'bit I'lu'y allocation Itnlnng Huglu' beets, Hun-
fl(iwer seeds, lull cotton of the residultl obtained by deducting
Lhe Hut) of fill known entries with the exception of 1)111k ((3.35
billion rubles) from fill till lumHeed plan for budget-financed
preen refile nt Hubtidl,'H ((1,5 billion rubles---hinans)1 S,SSIi, no.
1, 1900, p. 12). The plan number IH believed to exclude subsidies
for milk, refiecti)ug It new firrangement whereby, effective
Jantutry 111(131, the Milk Industry (VI)H to cover Lit(, difference
between the procurement price un(1 Its accounting price from
1111 intrfi-Milk Industry special account to be funded by obliga-
tory deduction)) in certain highly profitable ):reds of the in(Iuatry
(fluid milk, Home cheeses, IUId ice ('('Paul), Poor performmI)ee
hec)Lune of "lack of finnnchtl discipline" hits, however, re-
quired continuation of Iludget-fhtlutced subsidies for the
product, (See A. K. Korovllsllkin, c't al,, Rcgulirovanillt raznits o
tscnnkit na sel'skokhmzllo)1sivennH!/m produktsiyu, Moscow, 1972,
p, (10-08; Kudry)tvt.Hcwa, op. cit., p, 28-29, 32; 1''inansp SS,SR,
no. 5, 1971, p. 65; and Jikonamika sel'skogo khozyal/stca, no. 8,
1971, p. 21.)
11 Derived um the product of the number of tons procured in
1070 (0,800,000--Nark/(oz 1 97.1, p. 332) till(] the subsidy per
procured Lon (107 rubles---,Semenov, op. cit., p. 253),
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Total current outlays on each of the categories-
education, culture, and art-are as follows:
Total current outlays on education, estimated
at 15.034 billion rubles, consist of wages (9.333
billion rubles), social insurance deductions (0.513
billion rubles), and materials purchases (5.188
billion rubles). The estimate of total current out-
lays on education is based on the assumption that
the ratio of outlays for wages and social insurance
deductions to total current outlays on education
is the same as the ratio of outlays for wages and
social insurance deductions to total current outlays
on education, culture, and art as it whole. The ratio
is established in the first tabulation, below.
Total current outlays on each of the categories-
education, culture, and art-are presented in the
second tabulation, below. The derivation follows
that set out above for education; that is, total
current outlays on each of the categories-educa-
tion, culture, and art-are estimated on the
assumption that the ratio of outlays for wages and
social insurance deductions to total current outlays
on the category is the same as the ratio of outlays
for wages and social insurance deductions to total
current outlays on education, culture, and art as a
whole.
Billion
Rubles Percent'
Total outhrys on education, culture, and
art ............................ 23.500
Less:
Investment ..................... :3.235
Capital repair ................... 0.825
Stipends ........................ 1.300
Fees paid by the population ...... 0.071
Equals:
Total current outlays ............ 17.169 100.00
wages ........................ 10.(158 62.08
Social insurance deductions..... 0.586 3.41
Materials purchases............ 5.9252 34.51
1 Total current outlays data of column l expressed in percent.
2 Derived as the residual entry of column 1.
Billion Rubles
Education
Culture
Art
Total current outlays ........
15. (134
1.379
0.756
wages ...................
0.333
0.856
0.469
Social insurance deductions.
(1.513
0.047
0.026
Materials purchases I......
5.188
0.476
0.261
I Derived as it residual, the difference between total current
outlays and the sum of outlays for wages and social insurance
deductions.
Data for total outlays on education, culture, and
art (prosvcshcheniye) from the state budget and
other sources are from Narkhoz 1972, p. 726.
investment is derived its the difference between
total investment in 1970 in education, culture, art,
and science (4.525 billion rubles--Ibid., p. 479)
and estimated investment in science only (1.290
billion rubles-4, below).
Capital repair outlays are estimated on the
basis of (1) republic budget expenditures for capital
repair in education, culture, and art (0.640 billion
rubles-Gosudarstvennyy byudzhet 1966-1970, p.
84) and (2) the assumption that these expenditures
constituted 77.61% of total outlays for capital repair
in these categories. The share is the ratio of state
budget outlays on education, culture, and art
(18.226 billion rubles-Ibid., p. 25) to total outlays
on the categories (23.5 billion rubles-above).
Stipends are from Narkhoz 1972, p. 535.
Fees paid by the population for kindergartens
and other schooling are estimated in Appendix B,
item 2, c, (6).
Total wages in education, culture, and art are
derived as 10.658 billion rubles. the sure of (1)
wages in education and culture (10.189 billion
rubles) -calculated as the product of the number of
workers (8,025,000-Ibid., p. 505) and their annual
average wage (1,269.6 rubles-Ibid., p. 517)-and
(2) wages in art (0.469 billion rubles). Wages in
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art are derived as the product of the number of wakes and socia insurance deductions
workers (412,000--ibid., p. 505) and their average
annual wage (1,137.6 rubles-Ibid., p. 517). In
turn, wages in education are derived as 9.333 billion
rubles, the difference between wages in education
lint) culture (10.189 billion rubles-above) and
wages in culture (0.856 billion rubles). The wage
bill for culture is derived as the product of (1) the
number of workers (674,000-estimated at 8.9%
of total employment in education and culture on
the basis of the share obtaining for 1966-TsSU,
1'rud v SSSR, statisticheskii sbornilc, IVloscow, 1968,
p. 27, hereafter referred to as Trod v SSSI?) and
(2) the annual average wage (1,269.6 rubles). The
wage is assumed to be the same as for education
and culture as a whole (above).
Total social insurance deductions of 0.586 billion
rubles are the stun of social insurance deductions
in education (0.513 billion rubles), culture (0.047
billion rubles), and art (0.026 billion rubles).
Deductions are calculated at 5.5% of the respective
wage bills. (See Spravochnik partignoyo rabotnika,
P. 440.)
b. Art
Total current outlays on art, estimated at 0.756
billion rubles, consist of wages (0.469 billion rubles),
social insurance deductions (0.026 billion rubles),
and materials purchases (0.261 billion rubles). For
the derivation see 1, it, above.
c. Health
Total current outlays on health, estimated at
10.016 billion rubles, consist of wages (5.319 billion
rubles), social insurance deductions (0.292 billion
rubles), and materials purchases (4.405 billion
rubles). The estimate of total current outlays on
health is based on the assumption that the ratio of
outlays for wages and social insurance deductions
to total current outlays cn health is the same as the
ratio of outlays for wages and social insurance
deductions to total current outlays on health and
physical culture as it whole. The ratio is established
in the first tabulation, below.
Total current outlays on each of the categories-
health and physical culture-are presented in the
second tabulation, below. The derivation follows
that set out above for health; that is, total current
outlays on each of the categories--health and
physical culture--are estimated on the assumption
that the ratio of outlays for wages and social
insurance deductions to total current outlays on the
category is the same as the ratio of outlays for
to total cur-
physical culture as
Billion
Itublen Percent
culture .........................
less:
Investment .....................
Cilllital repairr ...................
Ices paid by till' population......
bylull4:
'I'oIill current outlay's............
I 190
0.352
0.512
W ages .......................
5.008
53. 10
Social insuraoec deductions.....
0.308
2.02
Materials purchas(,s............
4.1145 ~
43.08
1 Total current outlays data of cOluIIta I expressed in percent.
2 Derived as the residual entry of column 1.
Total current outlays on each of the categories-
health and physical culture-are its follows:
Billion Rubles
health
Physical
Culture
't'otal current. outlays' ................
10.016
0.515
Wages ...........................
5.311)
11.281)
Social i11411I'll flGr deductions.........
(.202
0.01(1
Materials purchases 1 ..............
4.405
(1.240
1 Derived its It residtill l, the difference between total current
outlays cull the suns of outlays for wages and social h s)ranet'
deductions.
Total outlays on health and physical culture are
the sum of outlays from the state budget and other
sources (11.8 billion rubles-Narkhoz 1972, p. 726)
and outlays for activities which, while classified as
"social security," are staffed by workers included in
"health and physical culture" employment (0.845
billion rubles-Ibid., p. 728).
Investment in health and physical culture is
derived on the basis of the estimated level of invest-
ment in 1965 and the implied average annual rate
of growth in 1966-75 (4.8%-see G'osudarstvenn.yy
pyatiletniy plan 1971-1975, p. 225).
Capital repair outlays are estimated on the
basis of (1) republic budget expenditures for capital
repair in health and physical culture (0.2582 billion
rubles-Gosudarstvennyy byudzhet 1966-1970, p.
95) and (2) the assumption that these expenditures
constituted 73.4% of total outlays for capital
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repair in these categories. 'I'Iie share is the ratio of
state budget outlays on health and physical culture
(0.284 billion rubles---Narlchoz 1972, u. 727) to
total outlays on 110100 1 and physical culture (12,645
billion rubles--above).
fees paid by the population are estimated in
Appendix 13, item 2, c, (7).
Total wages in health and physical culture are
derived its 5.(i08 billion rubles, the product of the
number of workers (5,080,0')0-Ibid., p. 505) and
the annual average wage (1,104 rubles--Ibid., p.
517). Wages in health are derived as 5.311) billion
rubles, the difference between total wages sn health
and physical cultur (5.608 billion rubles-above)
and wages in physical culture (0.289 billion rubles).
The wage bill in physical culture is derived as the
product of (1) the number of workers (262,000-
estimated at 5.15% of total employment in "health
and physical culture" on the basis of the share
obtaining for 1966-Trull v SSSR, p. 27) and (2)
the annual average wage (1,104 rubles). The wage
is assumed to be the same as for health and physical
culture as it whole (above).
Total social insurance deductions of 0.308 billion
rubles are the suns of social insurance deductions in
health (0.292 billion rubles) and in physical culture
(0.016 billion rubles). Deductions a, ' calculated at
5.5% of the respective wage bills. The rate is that
reported for medical workers (Spravochnik partiy-
nogo rabotnika, p. 440).
d. Physical cul; ure
This category consists of state-run resorts and
sports activities classified in "health." Total
current outlays on physical culture, estimated at
0.545 billion rubles, consist of wages (0.289 billion
rubles), social insurance deductions (0.016 billion
rubles), and materials purchases (0.240 billion
rubles). For the derivation, see 1, c, above,
2. General administrative and miscellaneous
services
a. General agricultural programs
General agricultural programs include activities
such as ar:mal and plant disease control, veterinary
services, seed inspection services, erosion control,
and land improvement services. Total current out-
lays on general agricultural programs, esti
mated
at 1.130 billion rubles, consist of wages
(0.722
billion rubles), social insurance deductions
(0.032
billion rubles), and materials purchases
billion rubles).
(0.376
Wages are derived its the product of the miiuler
of workers (587,000) and their estimated amltlal
average wage (1,229.6 rubles), Employment in
general government agricultural programs is de-
rived as the difference between total employm ent
in state agriculture (9,180,000) and employment
in state farnis and other state agricultural enter-
prises (8,503,000), its reported in Narlhoz 1972,
P. 504. The annual average tti,,ge is derived by
weighting wage data for "state agriculture" and
for "state farms and other state agricultural enter-
prises" (Ibid., P. 51(i) by the employment data
cited above,
Social insurance deductions are calculated at
4.4% of the wage bill. (See Spravochnik partiyncgo
rabotnika, p. 440.)
Total current outlays are estimated on the as-
sumption that, as was approximately the case for
education, culture, and art (1, a, above), wages
and social insurance deductions (derived above)
constitute two-thirds of total current outho s.
Materials purchases are the remainder,
b. Forest economy
Total cur. nt outlays on forest economy, esti-
mated at 0.822 billion rubles, consist of wages
(0.525 billion rubles), social insurance deductions
(0.023 billion rubles), and materials purchases
(0.274 billion rubles).
Wages are derived as the product of the number
of workers (433,000-Narlchoz 1972, p. 504) and
their estimated annual average wage (1,212 rubles).
The wage is assumed to be the same as that for
"state agriculture" (Ibid., p. 516).
Social insurance deductions are calculated at
4.4% of the wage bill, the rate reported for state
agriculture (Spravochnik partiynogo rabotnika, p.
440).
Total current outlays are estimated, as for
general agricultural programs, on the assumption
that wages and social insurance deductions (derived
above) constitute two-thirds of total current out-
lays Materials purchases are the remainder.
c. State administration (apparat)
Apparat includes state administrative bodies
at all levels, judicial organs, agencies for public
security and defense, and administrative organs of
consumer cooperatives. Total current outlays on
stat. administration (apparat), estimated at 3.952
billion rubles, consist of wages (2.499 billion rubles),
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social insuranc O (educt-ons ion rttb es
an(1 materials purchases (1.316 billion rubles),
Wages are derived as tho difference between
wages for workers in "apparat and administrative
organs of social organizations" (2.761 billion rubles)
and estimated wages for workers in administrative
organs of "social organizations" only (0.262 billion
rubles). (Social organizations include the Communist
Party, the Komsomol, trade unions, DOSAAF, the
Rcrl Cross and Red Crescent societies, sports
(;,;, irties, and it number of others. The wages of the
administrative organs of social organizations are
recorded in 2, d, (4), below.) The wage bill for
apparat and administrative organs of social organi-
zations is derived as the product of employment
(1,883,000-Narkhoz 1972, p. 505) and the annual
average wage (1,466.4 rubles-Ibid., p. 517). The
wage bill for administrative organs of social organi-
zations is derived as the product of (1) the number
of workers (179,000-estimated at 9.&1/14 of total
apparat employment on the basis of the share
obtaining for 1967-Trud v SSSR, p. 29) and (2)
an annual average wage assumed equal to that for
total apparat (1,466.4 rubles-above).
Social insurance deductions are calcula-d at
5.5% of the wage bill. (See Spravochnik pa),aynogo
rabotnika, p. 440.)
Total current outlays are estimated, by analogy
with education, culture, and art (1, a, above), on
the assumption that wages and social insurance
deductions (derived above) constitute two-thirds
of total current outlays. Materials purchases are
the remainder.
d. Municipal and related services
(1) Culture-This category consists mainly of
libraries, museums, parks, zoos, clubs, and chil-
dren's camps. Total current outlays on culture,
estimated at 1.37? billion rubles, consist of wages
(0.856 billion rubles), social insurance deductions
(0.047 billion rubles), and materials purchases
(0.476 billion rubles). For the derivation see 1,
a, above.
(2) Municipal services-This activity consists
mainly of upkeep of city streets and municipal
buildings, garbage and trash collections, fire pro-
tection, and the like. Total current outlays on
municipal services, estimated at 0.712 billion rubles,
consist of wages (0.454 billion rubles), social insur-
ance deductions (0.021 billion rubles), and materials
purchases (0.237 billion rubles).
CIA- RDP86T006018R000500110017-8
ages are (ler VW as t L. p-u(luct of the estimated
number of workers (400,0('J) and their eMti-nate(1
annual average wage (1, 134 rubles). On the basis of
the statement that 12%--1'1% of the total number
employed in the "housing-communal economy"
were engaged in general city services and adminis-
tration (L. N. Gol'tsrnan, Ekonomiku kommunal'nogo
l.hr~yaPjslva, uslug, tarify, Moscow, 1966, p. 52),
the lumber of workers in general city services is
estimated at 13% of the total number of workers in
housing-communal economy (3,052,000-?Narkhoz
1972, p. 505). Their annual averalre wage is as-
surned to be the same as that for housi.ig-communal
economy as it whole (Ibid., p. 517).
Social insurance deductions are calculated at the
rate reported for the branch (4.7`0-Spravochnik
partiynogo rabotnika, p. 440).
Total current outlays are estimated, by analogy
with education, culture, and art (1, a, above), on
the assumption that wages and social insurance
deductions (derived above) constitute two-thirds
of total current outlays. Materials purchases are
the remainder.
(3) Civilian police-Total .urrent outlays on
civilian police, estimated at 1.562 billion rubles,
consist of wages (0.988 billion rubles), social insur-
ance deductions (0.054 billion rubles), and materials
purchases (0.520 billion rubles).
Wages are derived as the product of estimated
police employment (675,000) and an annual average
wage assumed equal to that for all state employees
(1,464 rubles-Narkhoz 1972, p. 516). Police em-
ployment is estimated at 67.6% of total reported
employment in "other branches of material produc-
tion" (998,000-Ibid., p. 505). The share is that
for 1969, estimated from Rapawy (op. cit., p. 24)
and Narkhoz 1970, p. 511.
Social insurance deductions are calculated at
5.5% of the wage bill, the rate reported for "state
institutions" (Spravochnik parliynogo rabotnika,
p. 440).
Total current outlays are estimated, by analogy
with education, culture, and art (1, a, above), on
the assumption that wages and social insurance
deductions (derived above) constitute two-thirds
of total current outlays. Materials purchases are
the remainder.
(4) Administrative organs of social organiza-
tions-This category consists of the administrative
organs of social organizations such as the Com-
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nlunist Party, the KollltiOlllol, trade unions,
I)OSAAI, the lte(I ('rosy and Ite(I Crescent
soeioLics, sports societies, and it number of others.
Total current outlays on a diiiinistraLive organs of
+(.>ciitl organizations, 05tinlitte(1 ILL 0.414 billion
rubles, include wages (0.262 billion rubles), social
insurance deductions (0.014 billion rubles), and
innttel'iitls purchases (0,138 billion rubles).
Wages are derived in item 2, c, above. Social
insurance deductions are calculated at 5.5% of the
wage bill, the rate for state institutions (Spravoch-
nik, parliynogo rabotnika, p. 440). Total current
outlays are estimated, by analogy with education,
culture, and art (1, it, above), on the assumption
that wages and social insurance deductions (above)
constitute two-thirds of total current outlays.
Materials purchases are the remainder.
3. Gross investment
it. Fixed capital
Investment in fixed capital is derived as 102.433
billion rubles, the sum of the following:
Billion
Rubles
Outlays by public sector (excluding collective
harms) ................................... 90.3001
Capital repair ............................... 17,693
Changes in warehouse stocks of equipment re-
quiring installation ........................ -0.137
New fixed investment ........................ 72.744
Outlays by collective farms ................... 8.591
Capital repair ............................... 0.918
New fixed investment ........................ 7.673
let addition to livestock inventories In ?:acialized
agriculture .................................. 3.542
1 Derived as the sum of the parts.
Capital repair outlays of the public sector (ex-
cluding collective farms) are estimated on the
assumption that the sum of amortization deduc-
tions for capital repair (14.663 billion rubles-
Narkhoz '972, p. 723) and republic budget expendi-
tures for capital repair (2.499 billion rubles-
Gosudarslvennyy byudzhel 1966-1970, p. 81) ac-
counts for 97% of total outlays for capital repair.
(See Voprosy ekonomiki, no. 10, 1960, p. 48-49.)
(It should be noted that capital repair expendi-
tures in the USSR, cover a broader range of outlays
than do capital repair expenditures reported in US
accounts. Taxes on business income encourage US
firms to charge to production costs many outlays
classified as capital repair in the USSR.)
Warehouse stocks of uninstitllc(1 e(luipinent de-
elined by 0.137 billion rubles in 1970, dropping
from it level of 5.017 billion rubles at the end of
1969 to 4.880 billion rubles at the end of 1970
(M(tlcrial'no-lekhnicheslcoye snabzheniyc, no. 4, 1972,
p. 68).
Public sector new fixed investment in 1970 is
derived as the difference between total new fixed
investment in the national economy (82,053 billion
rubles-Narlchoz 1972, p. 473, 484) and the sum of
new fixed investment outlays of the population
(1.636 billion rubles-Ibid., p. 486) and collective
farms (7.673 billion rubles-Ibid., p. 485). Official
statistical handbook investment data are said to be
in comparable estimate-cost prices of 1 January
1969.
Capital repair outlays of collective farms are
from Kravchenko, op. cit., p. 67.
The net addition to livestock inventories in
socialized agriculture is estimated in Table D-1.
b. Inventories
Inventory investment of 15.154 billion rubles is
the sum of the increment in public sector (excluding
collective farms) inventories (14.910 billion rubles-
derived in Table D-2) and the increment in collec-
tive farm inventories (0.244 billion rubles--derived
in Table D-3).
4. Research and development (civilian and military)
Total current outlays on research and develop-
ment, estimated at 9.927 billion rubles, consist of
wages (5.316 billion rubles), social insurance deduc-
tions (0.292 billion rubles), and materials purchases
(4.319 billion rubles). The derivation starts with
the figure for total outlays on "science" (R&D)
from the state budget and other sources (11.7
billion rubles-Narkhoz 1572, p. 726):
Billion
Rubles
't'otal outlays on "science" (R&1)) ............... 11.7(10
Less:
Investment ............................... 1.290
Capital repair ............................. 0.483
Equals:
'rotal current outlays ...................... 9.927
Wages ................................. 5.310
Social insurance deductions ............... 0.292
Materials purchases ...................... 4.'A 19
Investment in science is estimated at 28.5% of
total investment in education, culture, art,. and
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science (4.525 billion rubles--Ibid., p. 479). The
share is derived as follows:
(1) Capital outlays on science in 1970 were
reported as 1.560 billion rubles (UNESCO, Slalisli-
cal Yearbook, 1072, p. 055). Capital outlays on
education in 1970 were reported as 3.306 billion
rubles (Ibid., p. 520). Since the total of investment
in these two categories (4.866 billion rubles) exceeds
reported capital investment in "education, culture,
art, and science" (4.525 billion rubles-above), the
UNESCO data are believed to include it part of
capital repair, probably budget-financed repair in
these categories.
(2) Given this expanded definition of capital
outlays, an estimate of capital outlays on education,
culture, and art of 3.922 billion rubles wits derived
on the assumption that the UNESCO-reported
figure for education (3.300 billion rubles) repre-
sented 84.3% of total capital outlay,: on education,
culture, and art. The share is the ratio of total
expenditures on education to total expenditures on
education, culture, and art (Narkhoz 1972, p. 726).
(3) In turn, total capital outlays on the four
categories are derived its 5.482 billion rubles, the
sum of capital outlays on education, culture, and
art (3.922 billion rubles) and on science (1.560
billion rubles). From this, the science share is
calculated as 28.5%.
Capital repair is derived on the basis of (1) the
estimated outlays for capital repair included in the
figure reported to UNESCO (0.270 billion rubles-
1.560 billion rubles less estimated investment of
1.200 billion rubles) and (2) the assumption that
these outlays represented 55,9%) of total outlays for
capital repair. The share is the ratio of state budget
outlays on science (0.543 billion rubles-Gosudar.Yl-
vennyll byudzhcl 1966-1970, p. 25) to total out-
lays on science (11.7 billion rubles-above).
Science wages are calculated as the product of
the number of workers (3,238,000-Narkhoz 1972,
p. 505) and their annual average wage (1,041.0
rubles-Ibid., p. 517).
Social insurance deductions are calculated at
5.5`/ of the wage bill. (See Spravochnik parliynogo
rabolnilca, p. 4,40.)
Materials purchases are derived as the difference
between total current outlays and the sum of out-
lays for wages and social insurance deductions.
5. Outlays n.e.c. (defense, net exports, and
unidentified outlays) and statistical
discrepancy
Derived as the difference between total outlays
(item 8) and the sum of items 1 through 4 and
item 7.
6. Consolidated total value of goods and services,
exclusive of sales to households
Derived as the sum of items 1 through 5.
7. Transfer outlays
Appendix A, item 8.
8. Consolidated total outlays
Equal to total incomes, Table 3, item 9.
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Inventory of Animals Net Addition to Livestock
-------- Inventories
End- End-
19692 - -----
.1970'3 Rubles
---- --- Thousand per Billion
Thousand Head Head' Head 5 Rubles ('
Total ......................................................................... 4.0557
Cattle ............................ 95,102 91),225 4,003 442 1.796
flogs ............................. 5(i,r.5 67,483 11,428 173 1.977
Sheep and goats ................... 135,803 143.421 7,618 :37 0.282
Socialized sector ............................................................... 3.5427
Cattle ............................ 70,173 74,272 4,(199 442 1.812
Ilogs ............................. 42,225 50,921 8,69(1 173 1.504
Sheep and goats ................... 104,138 110,241 0,103 37 0.226
Private sector ................................................................. 0.5137
Cattle ............................ 24,089 24,953 -36 442 -0.016
Hogs ............................. 13,830 16,502 2,732 173 0.473
Sheep and goats ................... :31,6(15 33,180 1,515 37 0.056
- - - - - - - - - - -- - -
A monetary valuation of the net addition to livestock inventories was estimated on the basis
of the change in numbers of each of 4 animals-cattle, hogs, sheep, and goats--and the estimated
average realized price per head for each type of animal.
2 Narkhoz 1970, p. 352-353.
Narkhoz 1922-72, p. 257.
Column 2 minus column 1.
For each type of animal an average realized live weight price expressed on it per head basis was
derived as the product of (1) the average live weight per head procured by the state in 1970-:301)
kilograms for cattle, 107 kilograms for hogs, and 40 kilograms for sheep and goats (Scl'skoyc
khozyaystvo, 1971, p. 328)-and (2) the average realized price per ton of live weight meat-1,431
rubles per ton for cattle, 1,620 rubles per ton for hogs, and 935 rubles per ton for sheep and goats
(from Table A-2, price entry of item a. (7) for parts 5A, 513, and 5C).
4 Column 3 multiplied by column 4, except where otherwise indicated.
7 Derived as the sum of the parts.
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USSR: Public Sector 1 Inventories,2 1969-70
(End-Year Data)
Total working capital .....................
191.389
211 .837
Less:
Money assets ........................
15.502
16.523
Financial claims ......................
13.014
15.676
Other working capital .................
0.766
0.847
Expenses of future periods .............
2.826
2.940
Livestock for fattening and young
livestock ..........................
6.405
8.065
Equals:
Inventories ..........................
152.876
167.786
Increment during the year. , .........
14.910
I State and cooperative enterprises and organizations, excluding collective farms.
2 Public sector inventories are derived as the difference between total working capital of state and
cooperative enterprises and organizations, excluding collective farms, as presented in official
statistical yearbooks, and the sum of (1) financial assets therein-money, financial claims, other
working capital, and expenses of future periods-and (2) the value of livestock for fattening and
young livestock. Livestock inventories are accounted for in fixed capital.
s Total working capital of state and cooperative enterprises and organizations, excluding collective
farms, is from Narkhoz 1970, p. 709. Money assets are calculated at 8.1%, financial claims at 6.8%,
and "other working capital" at 0.4% of this total (Ibid., p. 710). Expenses of future periods are
calculated as 1.9% (Ibid., p. 716) of total stocks of commodity-material values (148.712 billion
rubles-Ibid., p. 709). The entry for livestock for fattening and young livestock is calculated at
40.2% (Ibid., p. 724) of total stocks of commodity-material values in state agriculture (15.934
billion rubles-Ibid., p. 709).
4 Total working capital is from Narkhoz 1972, p. 702, Money assets are calculated at 7.8%,
financial claims at 7.4%, and "other working capital" at 0.4% of this total (Ibid., p. 703). Expenses
of future periods are calculated at 1.8'% (Ibid., p. 710) of total stocks of commodity-material values
(163.356 billion rubles-Ibid., p. 702). The entry for livestock for fattening and young livestock is
calculated at 43.6% (Ibid., p. 718) of total stocks of commodity-material values in state agriculture
(18.497 billion rubles-Ibid., p. 702).
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USSR: Collective Farm Working Capital, 1968-70
(End-Year Data)
- -
- - - - - - - - - - -
I V. V. Kochkarev, Oborolnyyc srcdstva kolkhozoi, Moscow, 1072, p. 11-12.
2 Total production assets are from Kochkarev (Ibid., p. 38). 't'otal circulating assets are estimated
from Kochkarev its the difference between total circulating assets and that part directed to capital
investment (Ibid.). Total working capital is derived as the sum of the parts. Livestock for fattening
and young livestock and finished production are estimated at the shares of production assets and
circulating assets, respectively, obtaining for the items in 1068.
3 Included in total production assets, above.
'1 Included in total circulating assets, above.
? Collective farm inventories are derived as the sum of production assets (excluding livestock for
fattening and young livestock) and finished production.
Production assets ..........................................
15.580 -
16.862
18.439
Productive stocks
Seed .................................................
1,'111
3
1.55(1
teed .................................................
2.600
3
2.803
Petroleum products ....................................
3
3
3
Spare parts ...........................................
0.427
3
0.487
Articles of little value which depreciate quicklyy ...........
3
3
3
Other materials .......................................
3
3
3
Unfinished production
Livestock for fattening and young livestock ...............
7.162
8.111
11.337
Expenses for harvest of future year ......................
1.760
3
2.008
Other unfinished production ............................
3
3
3
Circulating assets ..........................................
6.164
5.656
6.466
Finished production .....................................
0.988
0.005
0.798
Money assets ...........................................
4.(120
4.508
Of Which:
Current account in Gosbank ..........................
4.348
4.233
Special accounts for advances to collective farm members..
0.031
1
0.004
Funds in settlement ..........
0.547
1 . 160
Total working capital or collective farms .............'
21.744
22.518
24.905
Of which:
Inventories ...................................
11.076?
0.65(15
0.900?
Increment during the year ....................
0.560
0.214
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Sources for Table 8. USSR: Gross National Product in Established Prices, by End Use, 1970
1. Consumption
at. Goods
(1) Food-Consumption of food is estimated at
107.667 billion rubles, the sum of retail sales of
food and tobacco to the population (84.405 billion
rubles), household purchases of food in collective
farm ex-village markets (3.617 billion rubles),
farm household consumption-in-kind, excluding
wool (18.235 billion rubles), and the food portion of
military subsistence (1.410 billion rubles).
Retail sales of food and tobacco to the population
are estimated at 84.405 billion rubles, the difference
between total retail sales of food and tobacco
(88.948 billion rubles-Narkhoz 1972, p. 584-585)
and institutional purchases (4.543 billion rubles).
The latter estimate is derived as 63.31%, of total
institutional purchases of 7.177 billion rubles (Ap-
pendix B, item 1, a). The share is the 1968-69
share of food in total institutional purchases in the
retail trade network. (See Zaytseva and Moroz,
op. cit., P. 36.)
Household purchases of food in collective farm
ex-village markets are estimated at 3.617 billion
rubles, the difference between total food purchases
in collective farm ex-village markets (3.966 biliion
rubles) and institutional purchases of food in col-
lective farm ex-village markets (0.349 billion ru-
bles). Total food purchases in collective farm ex-
village markets are derived on the basis of the
percentage distribution of total food purchases
between state and cooperative trade and collective
farm markets (Narkhoz 1972, p. 576) and food
purchases in state and cooperative trade alone
(86.168 billion rubles-Ibid., p. 584). Institutional
purchases of food represent 95.7% of total institu-
tional purchases in collective farm ex-village mar-
kets (0.365 billion rubles-Appendix B, item 1, b),
the share derived for 1968-69 from Zaytseva and
Moroz, op. cit., p. 39.
Farm household consumption-in-kind, excluding
wool, is calculated from Appendix A, Table A-2,
part 10.
The food portion of military subsistence is from
Appendix A, stern 1. b.
(2) Soft goods--Consumption of soft goods is
estimated at 45.720 billion rubies;, the sum of retail
sales of soft goods to the population (44.800 billion
rubles), household purchases of soft goods in col-
lective farm ex-village markets (0.218 billion ru-
bles), farm household consumption-in-kind of wool
(0.112 billion rubles), and the clothing allowance in
military subsistence (0.590 billion rubles).
Retail sales of soft goods to the population are
estimated at 44.800 billion rubles, the difference
between total retail sales of soft goods (45.852
billion rubles) and institutional purchases of soft
goods (1.052 billion rubles). 't'otal retail sales of
soft goods are derived as the sum of 44.961 billion
rubles of identified retail sales of soft goods less
tobacco (Narkhoz 1972, p. 584--585) and 0.891
billion rubles, representing 50% of the difference
between (1) reported total retail sales of nonfood
goods, less tobacco sales and producer goods, sold to
farm households (see Appendix A, item 2, b) and
(2) identified retail sales of nonfood goods (includ-
ing services and film rentals-see Appendix B,
item 1, a) less tobacco (Ibid.). In the absence of
more specific data, the difference was allocated
equally to soft goods and durables. (Identified
retail sales of soft goods include sales of cloth,
clothing, knitwear, shoes, laundry soap, synthetic
cleaning materials, toilet soap and perfumes,
haberdashery, matches, notebooks and paper, and
printed goods.)
Institutional purchases of soft goods are esti-
mated at 1.052 billion rubles, the sum of (1)
identified soft goods purchases of 0.703 billion
rubles (26.7% of institutions' total nonfood pur-
chases of 2.634 billion rubles) and (2) an allowance
of 0.349 billion rubles, representing 50% of the
difference between institutions' total nonfood pur-
chases (2.634 billion rubles) and the sum of their
identified purchases of soft goods (0.703 billion
rubles), durable goods (0.903 billion rubles), and
investment goods (0.329 billion rubles) (1, a, (3),
61
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 below). Insfi(utions' total nonfood purehaHes of
2.(134 billion rubles are derived as the difference
between total institutional purchases (7.177 billion
rubles) and their food purchases (4.543 billion
rubles) (1, it, (1), above). The share of the total
represented by identified purchases of soft goods is
that for 1968-69 established from Zaytseva and
Moroz, op cit., p. 36-37.
household purchases of soft goods in collective
farm ex-village markets are estimated at 0,218
billion rubles, the difference between total house-
hold purchases in collective farm ex-village markets
(3.835 billion rubles--Appendix 13, item 1, b) and
household purchases of food in collective farm
ex-village markets (3.617 billion rubles-1, it, (1),
above). All nonfood goods sold in collective farm
ex-village markets are assumed to be soft goods.
Farm household consumption-in-kind of soft
goods consists of wool consumed in-kind. (See
Appendix A, Table A-2, part 7.)
The soft goods portion of military subsistence
consists of clothing. (See Appendix A, item 3, b.)
(3) Durable goods-Consumption of durable
goods is estimated at 13.975 billion rubles, the
difference between total retail sales of durable goods
(15.228 billion rubles) and institutional purchases
of durable goods (1.253 billion rubles). Total retail
sales of durable goods are derived as the sum of
14.336 billion rubles of identified retail sales of
durable goods (Narkhoz 1972, p. 584-585) and 0.892
billion rubles, representing 50% of the difference
between (1) reported total retail sales of nonfood
goods less tobacco sales and producer goods sold to
farm households (see Appendix A, item 2, a) and (2)
identified retail sales of nonfood goods (including
services and film rentals-see Appendix B, item
1, a) less tobacco (Ibid.). (Identified retail sales of
durable goods include sales of furniture and metal
beds, carpets, metal dishes, glass dishes, sporting
goods, radio goods, musical instruments, toys,
bicycles and motorbikes, watches, electrical goods,
sewing machines, jewelry, and other household
goods.)
Institutional purchases of durable goods are
estimated at 1.253 billion rubles, the sum of (1)
identified durable goods purchases (0.903 billion
rubles--34.3% of institutions' total nonfood pur-
chases of 2.634 billion rubles) and (2) an allowance
for unidentified purchases (0.350 billion rubles).
The allowance represents 50% of the difference
between institutions' total nonfood purchases
(2.634 billion rubles) and the sum of their identified
purchaMCH of soft goods (0.703 billion rubles--1, it,
(2), above), durable goods (0.003 billion rubles--
above), and investment goods (0.320 billion rubles).
Purchases of investment goods by institutions
consist of building materials. (See Appendix 13,
item 1, a.) Total
nonfood purchases of institutions
are from 1, it, (2), above. The share of the total
represented by identified purchases of durable
goods is that for 1068-69 established from Zaytseva
and Moroz, op. cit., p. 36-37.
(1) Trade union and other dues-Table 2, item
2, a.
(2) Housing-Table 2, item 2, b.
(3) Utilities-Table 2, item 2, c, (1).
(4) Personal transportation-Table 2, item 2,
c, (2).
(5) Personal communications-Table 2, item 2,
c, (3).
(6) Repair and personal car,-Table 2, item 2,
c, (4).
(7) Recreation, art, and physical culture-Table
2, item 2, c, (5); Table 4, item 1, b; and Table 4,
item 1, d.
(8) Education-Table 2, item 2, c, (6) and Table
4, item 1, a.
(9) Health-Table 2, item 2, c, (7), and Table 4,
item 1, c.
2. Investment
Table 2, item 5 and Table 4, item 3.
a. New fixed investment
New fixed investment of 86.364 billion rubles is
the sum of household outlays for private housing
construction (2.029 billion rubles-Table 2, item 5,
a); public sector (excluding collective farms)
changes in warehouse stocks of equipment requiring
installation (- 0.137 billion rubles) and outlays for
new investment (72.744 billion rubles) (Appendix
D, item 3, a); collective farm new fixed investment
(7.673 billion rubles-Appendix D, item 3, a); and
the net addition to livestock inventories in the
socialized and private sectors of agriculture (4.055
billion rubles-Appendix D, Table D-1).
(1) Machinery and equipment-Narkhoz 1972,
p. 474.
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(2) onvlructaon and other capital outlays are
estinnlted at 57.001) billion rubles, the difference
between total new fixed investment (80.364 billion
rubles--2, it, above) and the sum of Investment in
machinery and equipment (25,300 billion rubles--
2, it, (1), above) and the not addition to livestock
inventories (4.055 billion rubles-2, it, (3), below).
(3) Net addition to livestock inventories in social-
ized and private sectors of agriculture-Appendix D,
Table D-1.
'f'able 4, item 3, b.
3. Other public sector expenditures
it. General administrative and miscellaneous services
Table 4, item 2.
b. Research and development (civilian and military)
Table 4, item 4.
b. Capital repair
Capital repair of 18.611 billion rubles is the sum
of public sector (excluding collective farms) ex-
penditures (17.693 billion rubles) and collective
farm expenditures (0.918 billion rubles). See Ap-
pendix D, item 3, a.
c. Outlays n.e.c. (defense, net exports, and un-
identified outlays) and statistical discrepancy
Table 4, item 5.
4. Gross national product
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Sources for Table 7. USSR: Gross National Product in Established Prices, by Sector of Origin, 19711
1. Wage bill
The total wage bill is derived its 135.352 billion
rubles, the sum of state worker and employee
wages and salaries (132.032 billion rubles-Table 1,
item 1, a) and military pay (3.320 billion rubles-
Table 1, item 3, a).
The state wage bill in industry is derived as
48.849 billion rubles in Table F-1, item 1.
The state wage bills in construction, agriculture,
transportation, communicat'-,v, and trade are
each derived as the product 'ie sector's annual
average employment and its annual average wage
(Narkhoz 1972, p. 504-505, 516-517). The deriva-
tion is as follows:
Sector
Annual
Average
Employment
(Million
Persons)
Annual
Average
Wage
(Rubles)
State Wage
Bill
(Billion
Rubles)
Construction........
9.052
1,799
16.285
Agriculture' ........
8.593
1,211
10.406
Transportation......
7.985
1, 640
13.095
Communications....
1.330
1 , 162
1 .515
Trade2 .............
7.537
1,141
8.600
I State farms and other state agricultural enterprises.
2 Trade, public dining, material-technical supply and sales,
and procurement.
The state wage bill in "other branches of material
production" is derived as 0.473 billion rubles, the
product of the estimated number of workers
(323,000) and an annual average wage assumed
equal to that of total state employees (1,464
rubles-Narkhoz 1972, p. 516). Employment in
"other branches of material production" is derived
as the difference between total reported employ-
ment in "other branches of material production"
(998,000-Narkhoz 1972, p. 505) and estimated
police employment (675,000-Appendix D, item 2,
d, (3)).
The state wage bill in services is derived as :32.779
billion rubles, the difference between total stitte
worker and. employee wages and salaries (132,032
billion rubles-above) and the sum of the wage
bills in industry, construction, agriculture, trans-
portation, communications, trittle, and other
branches of material production (above).
2. Other and imputed income
'total other and imputed income of 62.223 billion
rubles is the sum of the following:
Industry-2.200 billion rubles, derived as the
sum of charges to enterprise costs for education
(0.196 billion rubles-below) and research (2.004
billion rubles-below);
Construction-1.564 billion rubles, derived as
the sum of private earnings in construction (0,239
billion rubles-Appendix A, item 4, a), the imputed
value of owner-supplied building services (0.880
billion rubles-Table 1, item 6), charges to enter-
prise costs for education (0.066 billion rubles-
below), and charges to enterprise costs for research
(0.379 billion rubles-below);
Agriculture-41.619 billion rubles, derived as the
sum of net income of households from agriculture
(41.577 billion rubles-Table 1, item 2) and charges
to enterprise costs for education (0.042 billion
rubles-below);
Transportation-0.152 billion rubles, derived as
the sum of charges to enterprise costs for education
(0.053 billion rubles-below) and research (0.099
billion rubles-below);
Communications-0.017 billion rubles, derived
as the sum of charges to enterprise costs for educa-
tion (0.006 billion rubles-below) and research
(0.011 billion rubles-below);
Trade-0.120 billion rubles, derived as the sum
of charges to enterprise costs for education (0.035
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billion rubles---below) and research (0.085 billion
rubles--below);
Services-3.510 billion rubles (Table F-4, item 2);
Military personnel-2.000 billion rubles, repre-
senting military subsistence (Table 1, item 3, b);
Other branches of material production-0.002
billion rubles, representing charges to enterprise
costs for education (below); and
Unallocated-11.039 billion rubles, representing
unidentified money income and the statistical
discrepancy (Table 1, item 4, b).
Total charges to enterprise costs to finance edu-
cation-0.400 billion rubles (Appendix C, item 2,
b)-arc distributed among the sectors, with the
exception of services (and excluding military per-
sonnel), by the percentage distribution of the state
wage bill in the sectors (calculated from item 1,
above).
Total charges to enterprise costs to finance
research-2.578 billion rubles (Appendix C, item
2, b)-are distributed among industry, construc-
tion, transportation, communications, and trade
by the percentage distribution of sebestoimost' (cost
of production) in these five sectors. Sebestoimost'
in industry, transportation, and communications
is derived on the basis of a 1970 input-output table
estimated by OER. Sebestoimost' in construction
and trade is derived as the sum of wages, other and
imputed income, social insurance deductions, and
depreciation in the respective sectors (data of this
table, items 1, 2, 3, and 5).
Total charges to economic enterprises for social
insurance and social security are derived as 9.436
billion rubles (Table 3, item 2, a). Social insurance
deductions in industry are derived as 3.531 billion
rubles in Table F-1, item 3.
Social insurance deductions in construction (0.993
billion rubles), transportation (0.694 billion rubles),
communications (0.082 billion rubles), trade (0.387
billion rubles), and other branches of material
production (0.034 billion rubles) are derived as the
product of the respective wage bills (from 1, above)
and the following rates: construction, 6.1%; trans-
portation, 5.3%; communications, 5.3%; trade,
4.5%; and other branches of material production,
7.2%. Rates, with the exceptions of the rate for
communications (for which the transportation rate
is used) and the rate for other branches of material
production (for which the implied rate for total
industry is used---Table V-2), are from Spravohhnik
partiynopo rabotnilca, p. 440.
Social Insurance deductions in agriculture are
derived its 1.612 billion rubles, the sum of (1)
deductions in state farms and other state agricul-
tural enterprises (0.458 billion rubles-derived as
the product, of the total wage bill, 10.406 billion
rubles-from 1, above-and the social insurance
rate, 4.4%-Ibid., p. 440); (2) social insurance
charges paid on wages of hired agricultural workers
(0.018 billion rubles-estimated on the basis of
Uchet i finansy v kolkhozakh i sovkhozakh, no. 7,
1907, p. 14, at 4.4% of the hired worker wage hill,
0.413 billion rubles, Table 1, item 2, a, (2)); (3)
deductions of collective farms into the All-Union
Social Insurance Fund for Collective harmers
(0.356 billion rubles--Appendix C, item 2, a); and
(4) deductions of collective farms into the All-Union
Social Security Fund for Collective Farmers (0.780
billion rubles-Appendix C, item 2, a).
Social insurance deductions in services are derived
as 2.103 billion rubles, the difference between total
charges to economic enterprises for social insurance
and social security (9.436 billion rubles-above)
and the sum of these charges in industry, construc-
tion, agriculture, transportation, communications,
trade, and other branches of material production
(above).
Total profits are calculated at 89.154 billion
rubles, the sum of profits distributed to consumer
cooperative members (0.027 billion rubles-Table
1, item 1, b), net income retained by organizations
(34.782 billion rubles-Table 3, item 1), tax on
income of collective farms (0.666 billion rubles-
Table 3, item 3, a), tax on income of consumer
cooperatives and other organizations (0.569 billion
rubles-Table 3, item 3, b), and deductions from
profits of state enterprises (53.110 billion rubles-
Table 3, item 3, c).
Profits in industry, transportation, communica-
tions, and construction are based on "net" profits
of state enterprises and the percentage distribution
of official statistical handbook data for profits of
state enterprises and economic organizations in
1970. "Net" profits of state enterprises are derived
as 79.591 billion rubles, the sum of retained profits
of state enterprises (26.481 billion rubles-Table 3,
item 1, b) and deductions from profits of state
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Onterprises (53.110 billion rubles-'Pablo 3, itch above), profits distributed to consumer cooperative
3, c), The derivation is its follows: members (0.027 billion rubles---Table 1, item 1, b),
Profit" of Stale "Net" Profits
E (erprlses, 1970 of State
Enterprises,
1970
Billion (Billion
Rubles I Percent llobles)2
Total ................. 85.668 100.1) 79.591
Industry ........... .!5.950 (15.3 51 .1)73
Construction........ . 4.739 5.5 4.378
Agriculture:' ........ 5.007 5.9 4.009
Transportation.... . . 10. (183 12.5 1). 0119
Cmouuunieations .... 0,8110 1 .0 0.71)13
Trade ....... . ...... 5,605 6.5 5. 173
Communal economy. (1,984 1.2 (1.055
Other branches...... 1.797 2.1 1.1)71
Narkhoz 1972, p. 097, except as noted below.
Profits in state farm other state agricultural enterprises,
and procurement organizations are given in the source as (3.117
billion rubles. Profits in procurement organizations of 1.050
billion rubles (estimated at one-half the difference between
profits for the joint entry-13.117 billion rubles---and profits is
state farms alone-4.018 billion rubles, Ekonontika sel'skogo
khozyaystta, no, 7, 1972, p. 34) are removed from "agriculture"
and are recorded in trade. Profits In stilt(- farms and other state
agricultural enterprises are derived an the difference between
the joint total and procurement profits.
Profits in transportation and communications are given in
the source its 11.523 billion rubles. Profits in transportation are
derived as the difference between the total for the two sectors
and profits in communications alone of 0.840 billion rubles
(TsSU, Transport i svtlaz' SSSR, statislichcskitl sbornik, Moscow,
1972, p. 32, hereafter referred to as Transport i svyaz', 1972).
Profits in trade are derived as the stns of (I) the source's
entries for trade (2,851) billion rubles) and supply and sales
(1.000 billion rubles) and (2) estimated profits of procurement
organizations (1.050 billion rubles-above).
2 "Net" profits of state enterprises differ from official
statistical handbook data on profits of state enterprises (as
presented in column 1) by the amount of profits counted else-
where in the accounts: (1) bonuses paid from various profits-
financed incentive funds (5.030 billion rubles, included in the
wage bill and household income-see Appendix C, item 1, b for
derivation) and (2) net receipts of the state insurance organiza-
tion (1.047 billion rubles, recorded as transfer receipts of the
Public Sector-for explanation, see Appendix C, item 3, c).
Total "net" profits are distributed among the sectors by the
percentage distribution in column 2.
2 State farms and other state agricultural enterprises.
Profits in agriculture are derived as 12.548 billion
rubles, the sum of "net" profits in state farms and
other state agricultural enterprises (4.696 billion
rubies-above), retained income of collective farms
(7.186 billion rubles-Table 3, item 1, a), and in-
come taxes of collective farms (0.666 billion rubles-
Table 3, item 3, a).
Profits in trade are derived as 6.456 billion rubles,
the sum of "net" profits (5.173 billion rubles-
retained profits of consumer cooperatives (0.794
billion rubles-'t'able 3, item 1, c), and income
taxes of consumer cooperatives (0.462 billion
rubles--see Appendix C, item 1, c).
Profits in services are derived as 3.054 billion
rubles in Table F-4, item 4. The estimate includes
"net" profits of the communal economy and "other
branches" (above) and estimated profits in recrea-
tion, art, and physical culture (see Table 1'-4,
item 4).
5. Depreciation
Total depreciation is derived as 31.827 billion
rubles (Table 3, item 6). The distribution by
sector of the economy is based on official statistical
handbook data for amortization deductions of state
enterprises and economic organizations and con-
sumer cooperatives, adjusted to exclude estimated
depreciation on housing (believed included in the
official handbook data). The adjustment is made
in order to record housing depreciation wholly in
services. The allocation of housing depreciation
(1.151 billion rubles-derived in Table F-4, item 5)
among the sectors (excluding "other branches")
is based on the percentage distribution of employ-
ment by sector of the economy computed from the
following employment data for 1970: industry
(31,593,000), construction (9,052,000), agriculture
(8,593,000), transportation (7,985,000), communi-
cations (1,330,000), trade (7,537,000), and com-
munal economy (1,495,000). Employment numbers,
with the exception of employment in the communal
economy, are frc to Narkhoz 1972, p. 504-505.
Employment in the communal economy is derived
as the difference between total employment in
"housing-communal economy and everyday serv-
ices" (3,052,000-Ibid., p. 505) and estimated
employment in housing alone (1,557,000-Table
F-4, item 1). The derivation is presented in the
tabulation following on p. 68.
Depreciation in agriculture is derived as 5.561
billion rubles, the sum of amortization deductions in
state agriculture, net of housing depreciation (2.839
billion rubles-below) and amortization deductions
in collective farms (2.722 billion rubles-Appendix
C, item 6).
Depreciation in services is derived as 1.752 billion
rubies, the Gam of amortization deductions, net of
housing depreciation, in the communal economy
(0.601 billion rubles-below) and housing deprecia-
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f)iclribullon of Annortizulion Deductions, Net of Housing Depreciation, by Sector of the Economy
Amortization
Deductions; 1t170
(Billion Robles)
Housing
Depreciation;- 1970
(Billion Rubles)
Antortizadon
Deduclions
Net of Housing
Depreciation 11
(Billion Rubles)
Total .............................
29.105
1.151
27.954
I n d ust.ry .......................
15.5.1 1
0.538
1111.1)00
Construction ....................
2.313
0.154
2.151)
State agriculture ...... . . . ... . ...
2.085
0. (411
2.8331
Transportation .... . .. . ..... . . . . .
5.002
0. 130
4.800
Conun[licit tloas ................
0.408
0.1)23
0.385
'T'rade ..........................
1.1108
0.121)
I . 1131)
Communal economyy . . .... . ... . ..
0.020
0.025
1). 110 I
Other branches ..................
(1.651)
Not app.
0.1)51)
n Narkhoz 1972, p. 723, except as noted below. Amortization deductions in trade are derived as
the sun) of the source's entries for trade, supply and sides, procurement, and consumer cooperatives.
Amortization deductions in transportation and communications are given in the source cu; 5.110
billion rubles. Amortization deductions in transportation are derived as the difference between the
total for the two sectors and estimated amortization deductions in communications alone of 0.408
billion rubles. Amortization deductions in communications are derived as 0.8% of the 11)70 annual
average stock of fixed capital in communications (0 billion rubles--Transport i setlu:.', 1972, 1).:31;
Narkhoz 1969, p. 40; A'u,'kho: 1970, p. III ).
2 The total is distributed among the. sectors, excluding "other branches," on the basis of the follow-
ing employment distribution: industry, ?113.7%,; construction, 13.4%,; state agriculture, 12.7%j;
transportation, 11_8%; communications, 2.0%; trade, 11.2%; and communal economy, 2.2'%,.
Shares are calculated from the employment data( cited above, p. 07.
11 Derived its colutan I less colmnln 2.
tion (1.151 billion rubles-derived in Table F-4,
item 5).
Depreciation in "other branches of material
production" is estimated at 0.050 billion rubles on
the basis of (1) the stock of fixed capital in these
areas in 1966 (as revealed in the 1966 input-output
table) and estimated depreciation thereon (see
Vladimir G. Treml, Dimitri M. Gallik, Barry L.
Kostinsky, and Kurt W. Kruger, The Structure of
the Soviet Economy-Analysis and Reconstruction of
the 1966 Input-Output Table, Praeger Publishers,
Inc., 1972, p. 324) and (2) an allowance for growth
in fixed capital in the four-year period.
In turn, the difference between the official
statistical handbook residual entry for amortiza-
tion deductions in "other branches" (0.659 billion
rubles-above) and the estimated depreciation in
"other branches of material production" (0.050
billion rubles) is entered as unallocated. These
amortization deductions are thought to represent
depreciation in khozraschet organizations within
the nonproductive sphere. However, no means are
at hand by which to distribute the depreciation
within the service sector.
Total indirect taxes of 72.172 billion rubles are
the sum of the following:
Industry-49.890 billion rubles, derived as the
sum of turnover tax (49.380 billion rubles-Table 3,
item 3, d) and price markups on radio and television
sets paid to the budget (0.510 billion rubles--see
Appendix C, item 3, e);
Agriculture-0.080 billion rubles, derived as the
sum of indirect taxes paid by farm households
(0.050 billion rubles-Appendix A, item 2, b);
indirect taxes paid by ollective farms (0.020 billion
rubles-Appendix C, item 1, a); and indirect taxes
paid by state farms (0.010 billion rubles-estimated
at one-half the amount paid by collective farms);
Trade-0.063 billion rubles, representing rental
income of property of local soviets (Appendix C,
item 3, e);
Services-0.670 billion rubles (Table F-4, item
6); and
Unallocated-21.469 billion rubles, derived as
the difference between miscellaneous charges
(22.792 billion r"bles-Table 3, item 3, e) and
the sum of price markups on radio and television
sets and indirect taxes in agriculture, trade, and
services (above).
7. Subsidies
Total subsidies and their distribution by sector
of ,the economy are derived in Appendix C, item 4.
8. Total
Derived as the sum of items 1 through 6, less
item 7.
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Industry, total ................
Electric powerr ..............
I'elroleunt products and gals...
('oal .............. . ........
Nonferl'ons illetIIls...........
Chemicals ..... . .. . ... . .....
Nlaehine building and me(al-
working ..................
''errous utel.als . . .. . .........
Forest products . . .. . . .......
Pulp and paper .............
Construction nmterlllls.......
Light industryy ..............
Processed foods... .........
Other industry ..............
State
Wage
11111
Other and
Imputed
Income
Social
Insurance
Profits
Depreciation
Turnover and
Other Indirect
't'axes
Less:
Subsidies
Total
48.849
2.200
3.531
51.97:1
15.006
?19.890
14.330
157.119
I , 050
0.0,17
0.0(10
3.'222
2.386
0.4114
0
7.2(18
0. (152
0.051
0.055
4,002
1,081
3.5(1(1
0
0.347
3.1104
0, 00(1
0.270
0.780
11.825
0
0
?1.11-15
1.372
0.072
0.108
2.405
0.780
0
(1
4.827
2,575
0, 12,1
11.216
:3.4311
1 ,330
((.'1'1'1
(1
8.125
19.180
0.521
1.470
12.881)
2.1(8(1
3.572
(1
10 , 624
2.502
0. 138
0. 108
3.742
1 .5(11
(1. 148
11
8.281)
4.175
0.1(11)
0.1111)
1 .975
0,510
0.1'18
1)
7.110
0.406
0.016
0.1)10
0.4(18
(1.225
0.(140
(1
' . 183
.3.71.1
0.008
0.227
1.507
1.1105
((.290
0
6.tii7
5.lit)))
(1.356
0.340
11.445
0.075
14.370
1.340
25.1)51
4 . 125
0,522
0.280
0.808
1.276
26.023
12.1)1)0
20.1114
0.095
((.083
(1.071
4.210
0.300
0.840
6
0.559
I Sources:
1. State wage bill
'I'he state wage bill in industry of 48,819 billion rubles and
the wage bills in branches of industry as recorded here exclude
wages of industrial workers performing repair and personal care
services. These personnel (numbering 1,2.18,000) are, In fact,
engaged in "everyday services" and are, together with their
wages of 1.700 billion rub s, counted in services instead of
industry. The derivation of wage hills in industry as at whole
and in branches of industry, including the wages of workers per-
forming repair and personal care services, is presented in Table
F-2.
2. Other and imputed income
Appendix. F, item 2.
3. Social insurance
Social insurance deductions in industry of 3.531 billion rubles
and social insurance deductions in brunches of industry as
recorded here exclude social insurance deductions of 0.120
billion rubles made for industrial workers performing repair
and personal care services. (Th(se deductions are counted in
services Instead.) The derivation of social insurance deductions
in industry as it whole and in branches of industry, of which for
workers performing repair and personal care servil es, is
presented in Table F-2.
"Net" 1 -ofits in industry are derived as 51.973 billion rubles
in Appendix F, item 4. The distribution of "net" profits by
branch of industry is based on the percentage distribution of
official statistical handbook data for profits by branch of
industry In 1970. The derivation is presented in the first tabullt-
tion following on p. 711.
Profits of repair laid personal care services performed by
industrial enterprises cannot be estimated for deduction here.
These profits, however, are bdlieved to be insignificant.
5. Depreciation
Depreciation in industry is derived as 15.0(1(3 Ir .lion rubles
in Appendix F, item 5. The distribution of depreciation by
branch of industry is based on the percentage distribution of the
1070 annual average stock of industrial fixed capital, net of
wear and tear (from Table F-3, column 7). That part of
depreciation included in industry for enterprises engaged in
repair and personal care services cannot be estimated.
Total turnover and other indirect taxes in industry are
derived its 49,8(10 billion rubles in Appendix F, item (i. The
turnover tax portion-19.380 billion rubles ('f'able 3, item 3,
d)-is distributed among the branches of industry according to
the percentage distribution calculated from it breakdown of
turnover tax payments given for 11)61) in S. V. 13orovik and N. A.
Phashchinskiy, Obrazoeanit/c fondly proizrodstrennogo nakoplcniya
v promyshlcnnoxti, Minsk, 1972, p. 179. The derivation is
presented in the second tabulation following on p. 70.
No turnover tax is levied on coal and ferrous metals. (Sec
Vladimir G. Trend, Barry L. Kostinsky, Kurt W. Kruger, !aid
Dimitri M. Gallik, Conversion of Soviet Input-Output '/'ah:-s to
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110017-8
Dlslribullon of "Net" Profits by Brunch of Industry'
(Item 4, above, continued)
Profits, (970
Net" Profits, 1970
Billion Rubles I
Percent
(Billion Rubles) 2
't'otal .....................................
05.956
100.1)
51.973
P;Iectrle power ......................... .
3.164
11,2
3.'222
I'otroloutn products atd gas ..............
4.292
7.7
4.01)2
Cold ...................................
0.844
1.5
0.780
Noufcrrous nietnis .......................
2.1(1111
1.8
2.405
Chemicals ..............................
3.7(18
06
3
MLchine building and uu'talworking, ......
1:3.887
2-1,8
12.889
Ferrous Inetuts ..........................
3.91))
7.2
:3.7,12
Forest products .........................
1.103
:3.8
1.075
PuIp and paperr .........................
0.481
0.1)
((.4138
Construction nuttcrlals ...................
I.011
2.0
1.5(17
Lightladlistry ..........................
0.962
12.4
(1,?1.1x,
Processed foods .........................
7.:359
13.1
(1,808
Other industry ..........................
1.553
8.1
1.210
I iVarkhoz 11)72, p. (391), except its mead below. Profits it, "other industry" are derived front the
source as the difference between total Industrial profits and the stun of profits in the listed bra nehes
of industry.
Profits in nonferrous metals are estimated on the basis of the ratio of profits in ferrous metals to
profits in all metallurgy --511.7%. This ratio is that derived for 1971 front reported profits in ferrous
metals of 4.0 billion rubles (Ibid.) and reported profits in all metallurgy of 6.7 billion rubles (N. G.
Sychcvu, editor, Firaasi/ predpriyafil/ i otrasley it aroduoyo kho yays1ru, Moscow, 1973, p. I34).
2 The total is distributed among the branches' by the percentage distribution in column 2.
Distribution of Turnover Tax by Branch of Industry
(Item 6, above, continued)
Turnover Tax, 1969
- - - - Turnover Tax; 1970
Billion Rubles Percent (Billion Rubles)
Total ..................................... 4.1.792 2 100.0 49.380
Electric power .......................... 0.458 l .0 (1.'194
Petroleum .............................. :3.187 7.1 3.500
Chemicals .............................. 0.927 0.9 0.11.14
Machine building and metalworking....... 2.70.1 6.2 3.002
Ferrous metals .......................... 0.155 ((.3 0.148
Forest products ......................... 0.I4(1 0.3 0.148
Pulp and paper ......................... 0.035:' 0.1 0.049
Construction materials ................... 0.255 0. (1 (1.200
Light industry .......................... 13.031 29. 1 14.370
Processed foods ......................... 23.587 52.7 2(3. (123
Other industry .......................... 0.754 1.7 0.8.10
The total is distributed a along the branches by the percentage distribution in colutnrr, `t. 2 The sum of the entries equals 44.793 billion rubles. The percentage distribution is the when
computed with either total,
' Turnover tax for the timber, woodworking, and pulp-paper branches, given in the source as 0.175
billion rubles, is allocated 80% to forest products and 20%. to pulp and paper ;,n the basis of the
branches' approximate shares in total profits in the two branches. (See item 4, above.)
70
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 oprrovpdl Folrf Release 2)003/09/29ut7CIA~1RIDIP86T00608 billion R0100500110017 1,vIII11lLP(I 54111041(1 II H
Inl!nt of (;,)Ap
Heolunale iteportm, No, I, -filly 11173, p, 20 21.) ()It gov11'uu,lal, purchliHeH of (1) wool (II,14 billion r'llbh'H);
'T'urnover and otllor Indh'o1t tnx1H In non/him,' bullding mud (2) HIl ufIowI r mild other oil N1edH, Ilcmp, fi