SOVIET NATIONAL ACCOUNTS FOR 1950

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79S01046A000600110006-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 175
• Document Creation Date: November 9, 2016
• Document Release Date: July 14, 1999
• Sequence Number: 6
• Publication Date: February 1, 1959
• Content Type: REPORT

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RESEARCH AID
SOVIET NATIONAL ACCOUNTS FOR 1950
CIA/RR RA 59-2
February 1959
CENTRAL INTELLIGENCE AGENCY
OFFICE OF RESEARCH AND REPORTS
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V7 ARNIDrG
This material cc:~ ~l;ain.s information affecting
the National Defense of the United States
withdi the nkea:iain:ng; of the espiionage laws,
Title 18, USC, Secs. 793 and '794, the trans-
missi:on or revelation of which in any manner
to an unauthcrized person is prohibited by law.
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RESEARCH AID
SOVIET NATIONAL ACCOUNTS FOR 1950
CIA/RR RA 59-2
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25X1A9a
25X1A9a
This research aid was prepared by
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FOREWORD
This research aid is the second in a series of four publications
undertaken to determine the real rate of growth in the output of goods
and services in the USSR between the years 1950 and 1955. The 1955
national accounts, RR 133, Soviet National Accounts for 1955, 28 May 1958,
SECRET, was the first; the third publication will present the basis for
computing the real rate of growth between 1950-55 (in 1955 rubles) by
determining the appropriate price deflators; and the fourth publication
will present the deflated gross national product for 1950 and 1955?
This research aid has been coordinated within ORR but not with other
agencies of the US Intelligence Board.
~+ n ry n
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CONTENTS
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . .
I. Introduction . . . . . . . . . . . . . . . . . . . . . .
II. Basic National Accounts . . . . . . . . . . . . . . . . .
A. Household Sector . . . . . . . . . . . . . . . . . .
1. Production Account . . . . . . . . . . . . . . .
2. Appropriation Account . . . . . . . . . . . . .
a. Purchase of Goods and Services from On
Sector . . . . . . . . . . . . . . . . . . .
b. Purchase of Goods and Services from Other
Sectors . . . . . . . . . . . . . . . . . .
(1) Nonagricultural Enterprise Sector
(a) State and Cooperative Retail
Purchases of Goods . . . . . . . . .
(b) Services . . . . . . . . . . . . . .
(c) Rent of State Housing . . . . . . . .
(d) Imputed Rent . . . . . . . . . . . .
(e) Forced Labor Subsistence . . . . . .
(2) Agricultural Enterprise System
(a) Collective Farm Market Purchases
(b) Farm Household Income-in-Kind . . . .
(c) Other Purchases . . . . . . . . . . .
(3) Government Sector . . . . . . . . . . . .
c. Taxes . . . . . . . . . . . . . . . . . . . .
d. Dues and Other Payments to Public Organiza-
tions . . . . . . . . . . . . . . . . . . .
e. Insurance Premiums . . . . . . . . . . . . .
f. Saving . . . . . . . . . . . . . . . . . . .
g. Statistical Discrepancy . . . . . . . . . . .
h. Income from Own Sector . . . . . . . . . . .
i. Income from Other Sectors . . . . . . . . . .
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(1) Urban Cash Incomes . . . . . . . . . . . 14
(a) Nonagricultural Enterprise Sector . . 14
(b) Agricultural Enterprise Sector . . . 15
(c) Government Sector . . . . . . . . . . 15
(2) Rural Cash :Incomes . . . . . . . . . 15
(a) Wages in State Agriculture . . . . . 15
(b) Cash Labor-Day Payments to Collective
Farmers 1.5
(c) Income of Farm Households from Sale
of Farm Products . . . . . . . . . . 15
(d) Other . . . . . . . . . . . . . . . . 15
(3) Incomes-in-Kind . . . . . . . . . . . . . 15
(a) Military Subsistence . . . . . . . . 15
(b) Farm Household Income-in-Kind . . . . 15
(c) Imputed Rent . . . . . . . . . . . . 16
;(d) Investment-in-Kind . . . . . . . . . 16
(e) Forced Labor Subsistence . . . . . . 16
j . Transfer Receipts . . . . . . . . . . . . . 16
(1) Pensions . . . . . . . . . . . . . . . . 16
(2) Stipends . . . . . . . . . . . . . . . . 16
(3) Interest . . . . . . . . . . . . . . . . 16
(4) Other . . . . . . . . . . . . . . . . . . 16
3. Capital Account . . . . . . . . . . . . . . . . . 16
a. Gross Capital Formation . . . . . . . . . . . 16
(1) Capital Repairs . . . . . . . . . . . . . 16
(2) New Fixed Investment . . . . . . . . . . 17
b. Capital Transfers to the Government Sector 17
(1) Net Purchase of Government Bonds . . . . 17
(2) Additions to Savings Deposits . . . . . . 18
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c. Additions to Cash Balances . . . . . . . . . 18
d. Saving . . . . . . . . . . . . . . . . . . 19
e. Net Borrowing from the Government Sector . . 19
B. Nonagricultural Enterprise Sector . . . . . . . . . . 19
1. production Account . . . . . . . . . . . . . . . 19
a. Purchases from Other Sectors . . . . . . . 19
b. Indirect Taxes . . . . . . . . . . . . . . 20
(1) Turnover Taxes . . . . . . . . . . . . . 20
(2) Other Enterprise Taxes and Payments . . . 20
c. Capital Consumption Allowances . . . . . . . 21
d. Income Originated . . . . . . . . . . . . . . 21
e. Statistical Discrepancy . . . . . . . . . . 21
f. Sales to Other Accounts . . . . . . . . . . . 21
(1) Household Sector . . . . . . . . . . . . 21
(a) Appropriation Account . . . . . . . . 21
(b) Capital Account . . . . . . . . . . . 21
(2) Nonagricultural Enterprise Capital
Account . . . . . . . . . . . . . . . . 22
(3) Agricultural Enterprise Sector 22
(a) Production Account . . . . . . . . . 22
(b) Capital Account . . . . . . . . . . . 22
(4) Government Sector . . . . . . . . . . . . 22
(a) Production Account . . . . . . . . . 22
(b) Capital Account . . . . . . . . . . . 22
g. Subsidy Receipts . . . . . . . . . . . . . . 22
2. Appropriation Account . . . . . . . . . . . . 22
a. Payments to the Household. Sector . . . . 22
(1) Worker and Employee Wages . . . . . 22
(2) Cooperative Artisan Wages . . . . . . . . 24
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(3) Profits Distributed to Cooperative
Members . . . . . . . . . . . . . . 24
(4) Other Urban Labor Incomes . . . . . . 25
(5) imputed Rent . . . . . . . . . . . . . . 25
(6), Investment-in-Kind . . . . . . . . . . . 25
(7) Forced Labor Subsistence . . . . . . . . 25
b. Payments to the Government Sector . . . . . . 26
(1) Direct Taxes . . . . . . . . . . . . . . 26
(a) Profits Taxes of State Enterprises 26
(b) Income Taxes of Cooperatives . . . . 27
(2) Social Insurance . . . . . . . . ... . . 27
(3) Payments to Banking System by
Cooperatives . . . . . . . . . . . . 27
c. Saving .. . . . . . . . . . . . . . . . . . . 27
(1) State Enterprises . . . . . . . . . . . . 27
(2) Cooperatives . . . . . . . . . . . . . . 27
d. Income Originated . . . . . . . . . . . . . . 27
3. Capital Account . . . . . . . . . . . . . . . . . 28
a. Gross; Capital Formation . . . . . . . . . . . 28
(1) Capital Repairs . . . . . . . . . . . . . 28
(2) New Fixed Investment . . . . . . . . . 28
(3) Additions to Inverntories . . . . . . . . 29
b. Capital Transfers to the Government Sector 30
c. Other . . . . . . . . . . . . . . . . . . . . 30
d. Statistical Discrepancy . . . . . . . . . . . 30
e. Saving . . . . . . . . .. . . . . . . .. . . . 30
f. Capital Consumption Allowances . . . . . . . 30
g. Capital Transfers from the Government
Sector . . . . . . . . . . . . . . . . . . . 30
h. Net Borrowing from the Government Sector . . 30
C. Agricultural Enterprise Sector . . . . . . . . . . . 30
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(1) MTS' s . . . . . . . . . . . . . . . . . . 32
(2) State Farms . . . . . . . . . . . . ... . 33
(3) Collective Farms . . . . . . . . . . . . 33
(4+) Farm Households . . . . . . . . . . . . . 34
b. Indirect Taxes . . . . . . . . . . . . . 34+
c. Capital Consumption Allowances . . . . . . . 35
d. Income Originated . . . . . . . . . . . . . . 35
e. Statistical Discrepancy . . . . . . . . . . . 35
f. Sales to Other Accounts . . . . . . . . . . . 35
(1) Household Sector . . . . . . . . . . . . 35
(a) Collective Farm Ex-Village Market
Trade . . . . . . . . . . . . . . . 35
(b) Other Sales . . . . . . . . . . . . . 35
(c) Farm Household Income-in-Kind . . . . 35
(2) Nonagricultural Enterprise Sector . . . . 36
(a) State and Cooperative Acquisitions 36
(b) Sales to Institutions on Collective
Farm Market . . . . . . . . . . . . 37
(3) Agricultural Enterprise Capital Account 37
(a) Investment-in-Kind . . . . . . . . . 37
(b) Sales to Fixed Investment . . . . . . 37
(c) Sales to Capital Repairs . . . . . . 37
(d) Additions to Inventories . . . . . . 38
g. Subsidy Receipts . . . . . . . . . . . . . . 38
(1) MTS's . . . . . . . . . . . . . . . . . . 38
(2) State Farms . . . . . . . . . . . . . . . 38
2. Appropriation Account . . . . . . . . . . . . . . 38
a. Payments to Household Sector . . . . . . . . 38
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(1) Wages in State Agriculture . . . . . 38
(a) MTS's . . . . . . . . . . . . . . . . 38
(b) State Farms . . . . . . . . . . . . . 41
(2) Collective Farm Wage Payments . . . . . . A
(a) Cash Labor-Day Payments to Collective
Farmers . . . . . . . . . . . . . . 41
(b) Administrative Wages . . . . . . 41
(c) Wages of Hired Nonconstruction
Labor . . . . . . . . . . . . . . . 42
(3) Collective Farm Transfer Payments . . . . 42
(4) Farm Household Income from Sale of
Farm Products . . . . . . . . . . . . . . 42
(a) Rural Households . . . . . . . . . . 42
(b) Urban Households . . . . . . . . . 42
(5) Farm Household Income-in-Kind . . . . . 43
b., Payments to the Government Sector . . . . 43
(1) Direct Taxes . . . . . . . . . . . . . . 43
(a) Profits Taxes of State Farms . . . . 43
(b) Income Taxes of Collective Farms 43
(2) Social Insurance . . . . . . . . . . . . 43
(a) MTS 43
(b) State Farms . . . . . . . . . . . . . 43
(3) Insurance Premiums . . . . . . . . . . . 43
c. Saving . . . . . . . . . . . . . . . . . . . 44
(1) State Farms . . . . . . . . . . . . . 44
(2) Collective Farms . . . . . . . . . . . . 44
(a) Undistributed Profits . . . . . . . . 44
(b) Investment-in-Kind . . . . . ... 44
(3) Net Changes in Livestock Inventory . . . 44
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d. Income Originated . . . . . . . . . . . . . . 44
e. Transfer Receipts . . . . . . . . . . . . . . 45
3. Capital Account . . . . . . . . . . . . . . . . . 45
a. Gross Capital Formation . . . . . . . . . . . 46
(1) Capital Repairs . . . . . . . . . . . . . 46
(a) MfS' s . . . . . . . . . . . . . . . . 46
(b) State Farms . . . . . . . . . . . . 46
(c) Collective Farms . . . . . . . . . . 46
(2) New Fixed Investment . . . . . . . . . . 46
(a) State Agriculture . . . . . . . . . . 46
(b) Collective Farms . . . . . . . . . . 46
(c) Farm Households . . . . . . . . . . . 47
(3) Additions to Inventories . . . . . . . . 47
b. Other . . . . . . . . . . . . . . . . . . . . 47
c. Saving . . . . . . . . . . . . . . . . . . 48
d. Capital Consumption Allowances . . . . . . . 48
e. Capital Transfers from Government Sector . . 48
f. Net Borrowing from Government Sector . . . . 48
D. Government Sector . . . . . . . . . . . . . . . . . . 48
1. Production Account . . . . . . . . . . . . . . 48
a. Wages of Government Employees . . . . . . . . 50
(1) Civilian Employees . . . . . . . . . . . 50
(a) Health and Education . . . . . . . . 50
(b) Gengral Administration . . . . . . . 50
(c) Internal Security . . . . . . . . . 50
(d) Public Organizations . . . . . . . . 50
(e) Military Personnel . . . . . . . . . 51
(2) Military Pay . . . . . . . . . . . . . . 51
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c. Purchases from the Nonagricultural
Enterprise Sector . . . . . . . . . . . . .
(1) Health and Education . . . . . . . .
(2) General Administration . . . . . . . . .
(3) Military Subsistence . . . . . . . . . .
(4) Military Procurement and Operations . . .
(5) Internal Security . . . . . . . . . . . .
(6) Defense Programs . . . . . . . . . . . .
(7) Research and Development Programs . . . .
(8) Public Organizations . . . . . . . .
(9) Miscellaneous . . . . . . . . . . . . . .
d. Cost of Government Services . . . . . . . . .
2. Appropriation Account . . . . . . . . . . . . . .
a. Cost of Government Services . . . . . . .
b. Transfers to the Household Sector . . . . . .
(1) Pensions . . . . . . . . . . . . . . .
(2) Stipends . ,. . . . . . . . . . . . . . .
(3) Interest . . . . . . . . . . . . . . . .
(4+) Insurance Indemnities . . . . . . . .
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c. Transfers to the Nonagricultural Enterprise
Sector . . . . . . . . . . . . . . . . . . . . 56
(1) Grants to Procurement . . . . . . . . . . 56
(2) Subsidies . . . . . .
........ 56
d. Transfers to the Agricultural Enterprise
Sector . . . .. . . . . . . . . . . . . . . .
(1) Subsidies . . . . . . . . . . . . . . . .
(2) MTS Grant . . . . . . . . . . . . . .
(3) Insurance Indemnities . . . . . . . . . .
e. Saving . . . .. . . . . .. . . . . . . . . . .
f. Receipts from Own Sector . . . . . . . . . .
g. Receipts from Other Sectors . . . . . . . . .
(1) House Taxes and Payments . . . . . . . .
(2) Taxes on Enterprises . . . . . . . . .
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(a) Profits Taxes . . . . . . . . . . . . 58
(b) Income Taxes . . . . . . . . . . . . 58
(c) Turnover Taxes . . . . . . . . . 59
(d) Other Enterprise Taxes and Payments . 59
(3) Social Insurance . . . . . . . . . . . 59
(4) Dues and Other Payments to Public
Organizations . . . . . . . . . . . 59
(5) Insurance Premiums' . . . . . . . . . . 59
. Capital Account . . . . . . . . . . . . . . . .
a. Capital Transfers to Other Sectors
(1) Nonagricultural Enterprise Sector . . . . 61
(2) Agricultural Enterprise Sector . . . . . 61
b. Net Loans to Other Sectors . . . . . . . . . 62
c. Government Capital Formation . . . . . . . . 63
(1) Capital Repairs . . . . . . . . . . . . . 63
(2) New Fixed Investment . . . . . . . . 64
(3) Other . . . . . . . . . . . . . . . . . . 64-
d. Additions to Cash Balances . . . . . . . . . 64-
e . Saving . . . . . . . . . . . . . . . . . . . 64
f. Capital Transfers from the Household Sector . 64
(1) Net Purchase of Government Bonds . . . . 64
(2) Additions to Savings Deposits . . . . . . 65
g. Capital Transfers from the Nonagricultural
Enterprise Sector . . . . . . . . . . . . . 65
h. Reparations . . . . . . . . . . . . . . . . . 65
E. Consolidated National Accounts . . . . . . . . . . . 65
1. Production Account . . . . . . . . . . . . . . . 65
a. National Income . . . . . . . . . . . . . . . 66
b. Capital Consumption Allowances . . . . . . . 66
c. Indirect Taxes . . . . . . . . . . . . . . 67
d. Subsidies . . . . . . . . . . . . . . . . . . 67
e. Statistical Discrepancy . . . . . . . . . . . 67
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f. Consumers' Expenditure on Goods and
Services . . . . . . . . . . . . . . . . . . 67
g. Government Current Expenditure on Goods
and; Services . . . . . . . . . . . . . . . . 67
h. Gross Capital Formation . . . . . . . . . . . 67
2. Appropriation Account . . . . . . . . . . . . . . 67
a. Wages and Other Cash Household Income . . . . 68
b. Income-in-Kind . . . . . . . . . . . . . . . 68
c. Social Insurance . . . . . . . . . . . . 68
d. Direct Taxes and Related Payments of Enter-
prise:; . . . . . . . . . . . . . . . . . . . 69
e. Saving of Enterprises . . . . . . . . . . . . 69
3. Capital Account . . . . . . . . . . . . . . . . 69
a. Gross Capital Formation . . . . . . . . . . . 70
(1) Capital Repairs . . . . . . . . . . . . . 70
(2) New Fixed Investment . . . . . . . . . . 70
(3) Additions to Inventories . . . . . . . . 70
(4) Other . . . . . . . . . . . . . . . . . . 70
b. Statistical Discrepancy . . . . . . . . . . . 70
c. Capital Consumption Allowances . . . . . . . 70
d. Saving . . . . . . . . . . . . . . . . . . . 70
e. Addition to Monetary Assets . . . . . . 71
f. Capital. Transfers from Abroad (Reparations) 71
III. Gross National Product by End Use . . . . . . . . . . . . 73
A. GNP at Established Prices . . . . . . . . . . . . . . 73
1. Consumption . . . . . . . . . . . . . . . . . . . 73
2. Investment . . . . . . . . . . . . . . . . . . . 74
3. Defense . . . . . . . . . . . . . . . . . . . . . 75
4. Administration . . . . . . . . . . . . . . . . . 76
B. GNP at Adjusted Factor Cost . . . . . . . . . . . 77
IV. National Income by Sector of Origin . . . . . . . . . . . 85
A. National Income at Factor Cost . . . . . . . . . 85
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1. Industry . . . . . . . . . . . . . . . . . . . . 87
a. Wages and Other Cash Household Income . . . . 87
b. Income-in-Kind . . . . . . . . . . . . . . . 88
c. Social Insurance . . . . . . . . . . . . . . 88
d. Profits . . . . . . . . . . . . . . . . . . . 88
a. Wages and Other Cash Household Income 88
b. Income-in-Kind . . . . . . . . . . . . . . . 89
,c. Social Insurance . . . . . . . . . . . . . 89
d. Profits . . . . . . . . . . . . . . . . . . . 89
3. Agriculture . . . . . . . . . . . . . . . . . . . 89
a. Wages and Other Cash Household Income . . . . 89
b. Income-in-Kind . . . . . . . . . . . : . . . 89
c. Social Insurance . . . . . . . . . . . . . . 89
d. Profits . . . . . . . . . . . . . . . . . . . 90
4. Transport . . . . . . . . . . . . . . . . . . . . 90
a. Wages and Other Cash Household Income . . . 90
(1) Wages in Railroad Transport . . . . . . . 90
(2) Wages in Maritime Transport . . . . . 90
(3) Wages in River Transport . . . . . . . . 92
(4) Wages in Motor Transport . . . . . . . . 92
b. Income-in-Kind . . . . . . . . . . . . . . . 92
c. Social Insurance . . . . . . . . . . . . . . 92
d. Profits . . . . . . . . . . . . . . . . . . . 92
5. Communications . . . . . . . . . . . . . . . . . 92
a. Wages and Other Cash Household Income . . . . 92
b. Income-in-Kind . . . . . . . . . . . . . . 93
c. Social Insurance . . . . . . . . . . . . . . 93
d. Profits . . . . . . . . . . . . . . . . . 93
6. Domestic Trade . . . . . . . . . . . . . . . . . 93
a. Wages and Other Cash Household Income . . . . 93
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(1) Wages in Retail Trade . . . . . . . . . . 93
(2) Wages in Wholesale Trade . . . . . . . . 94
(3) Public Feeding Establishments . . . . . . 94+
(1) Administrative and Service . . . . . . . 94
(a) Transport Workers . . . . . . . . 94
(b) Guards . . . . . . . . . . . . . . . 94
(c) Administrative :Personnel . . . . . . 94+
b. Income-in-Kind . . . . . . . . . . . . . . . 95
c. Social Insurance . . . . . . . . . . . . . . 95
d. Profits . . . . . . . . . . . . . . . . . . . 95
7. Government ! Services . . . . . . . . . . . . . . . 95
a. Wages and Other Cash Household Income . . . . 95
b. Income-in-Kind . . . . . . . . . . . . . . . 95
c. Social Insurance . . . . . . . . . . . . . . 95
d. Profits . . . . . . . . . . . . . . . . . . 95
8. Other Services and Statistical Discrepancy .
a.. Wages and Other Cash Household Income . . . . 95
b. Income-in-Kind . . . . . . . . . . . . . . . 96
c. Social Insurance . . . . . . . . . . . . . . 96
d. Profits . . . . . . . . . . . . . . . . . . . 96
B. National Income at Adjusted Factor Cost . . . . . . . 96
Appendixes
Appendix A. Soviet National Accounts, :L950: Classification
of Budget Revenues and Expenditures . . . . . . 99
Appendix B. Soviet National Accounts, 1950: Agricultural
Income and Outlay . . . . . . . . . . . . . . . 105
Appendix C. Soviet National Accounts, :L950: Methodology
for Capital Accounts . . . . . . . . . . . . . 135
Appendix D. Source References . . . . . . . . . . . . . . . 14+7
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Account
1. Soviet National Accounts, 1950: Appropriation
Account of the Household Sector . . . . . . . .
8
Account
2. Soviet National Accounts, 1950: Capital
Account of the Household Sector . . . . . . . .
17
Account
3. Soviet National Accounts, 1950: Production
Account of the Nonagricultural Enterprise
Sector . . . . . . . . . . . . . . . . . .
20
Account
4. Soviet National Accounts, 1950: Appropriation
Account of the Nonagricultural Enterprise
Sector . . . . . . . . . . . . . . . . . . . .
23
Account
5. Soviet National Accounts, 1950: Capital Account
of the Nonagricultural Enterprise Sector . . .
28
Account
6. Soviet National Accounts, 1950: Production
Account of the Agricultural Enterprise Sector .
31
Account
Account
7. Soviet National Accounts, 1950: Appropriation
Account of the Agricultural Enterprise Sector
8. Soviet National Accounts, 1950: Capital
Account of the Agricultural Enterprise Sector .
45
Account
9. Soviet National Accounts, 1950: Production
Account of the Government Sector . . . . . . .
49
Account 10. Soviet National Accounts, 1950: Appropriation
Account of the Government Sector . . . . . . .
54
Account 11. Soviet National Accounts, 1950: Capital
Account of the Government Sector . . . . . . .
60
Account 12. Soviet National Accounts, 1950: Production
Account of the Consolidated National Accounts .
66
Account 13. Soviet National Accounts, 1950: Appropriation
Account of the Consolidated National Accounts .
68
Account 14. Soviet National Accounts, 1950: Capital
Account of the Consolidated National Accounts . 69
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1. Distribution of Soviet Gross National Product at
Established Prices, by End Use, 1950 . . . . . . . . . . 74
2. Interrelation ofSoviet Gross National Product and
National Income Magnitudes, 1950 . . . . . . . . . . . .
78
3. Derivation of Soviet Gross National Product at Adjusted
Factor Cost, by End Use, 1950 . . . . . . . . . . . . . 79
4+. Distribution of Explicit Final Product Sales of the
Soviet Nonagricultural Enterprise Sector, by End Use,
1950 .............. ........... 82
5. Soviet Gross National Product at Established Prices and
at Adjusted Factor Cost, by End Use, 1950 . . . . . . . 83
6. Soviet National Income at Factor Cost, by Sector of
Origin and by Type of Factor Payment, 1950 . . . . . . . 86
7. Soviet Computation of Transport Sebestoimost', 1950 and
1955 ............. ............ 9:L
8. Soviet National Income at Adjusted Factor Cost, by Sector
of Origin, 1950 . . . . . . . . . . . . . . . . . . . .
9. Soviet National Accounts, 1950: Classification of Budget
Revenues . . . . . . . . . . . . . . . . . . . . 100
10. Soviet National Accounts, 1950: Classification of Budget
Expenditures . .. . . . . . . . . . . . . . . . . . . . . 101
11. Distribution of Outlays from the Money Income of Soviet
Collective Farms, 1950 . . . . . . . . . . . . . . . . . 106
12. Farm Household Sales of Farm Products in the USSR, 1950 . 110
13. Income and Outlay of Soviet State Farms, 195,0 . . . . . . 113
14. Soviet National Accounts, 1950: Disposition of Output
of Commodities Included in Farm Household Consumption-
in-Kind . . . . . . . . . . . . . . . . . . . . . . . . 119
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15. Soviet National Accounts, 1950: Valuation of Soviet
Farm Household Consumption-in-Kind . . . . . . . . . . . 120
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SOVIET NATIONAL ACCOUNTS FOR 1950*
Summary
In 1950 the gross national product (GNP), or total output of goods
and services, of the USSR amounted to 1,082 billion rubles in estab-
lished prices. When GNP is adjusted from an established price basis
to a factor-cost basis, in order to eliminate the effect of the unpor-
portionate distribution of indirect taxes and subsidies, an adjusted
factor-cost GNP of 713 billion rubles in obtained. Of this total,
59 percent was devoted to consumption, 25 percent to investment, 13 per-
cent to defense, and 3 percent to government administration.
National income, or the sum of all labor and enterprise incomes,
was 684 billion rubles at adjusted factor cost in 1950. About 32 per-
cent of this total originated in industry and construction; 28 percent
in agriculture; 4 percent in transport and communications; and the re-
maining 36 percent in trade, government services, and other services.
Converted on the basis of appropriate ruble-dollar ratios, Soviet
GNP in 1950 at established prices was equivalent to 1950 US $87 billion.**
* The estimates and conclusions in this research aid represent the
best judgment of this Office as of 1 January 1959. The figures for
military spending in 1950 are highly tentative and are presented as
a first approximation.
** Unless otherwise indicated, dollar values in this research aid
are in terms of 1950 US dollars.
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I. Introduction.
There is no single measure adequate to assess the economic capa-
bility of a nation, as the quantity desired depends on the purpose for
which it is needed -- for example, to estimate military strength, con-
sumer welfare, or growth. The closest approach to a general appraisal
of the over-all productive capacity of an economy is an estimate of
the net value of total goods and services produced during a specified
period, usually 1 year. This measure of total output is called gross
national product (GNP). Estimation of GNP is accomplished through the
construction of national accounts for the economy. In addition to
measuring total size, however, national accounts can be organized to
show other aspects of the economy, such as the end use of its output,
the industrial origin of its national income, and intersectoral rela-
tionships.
The system of national accounts used in this report is intended to
show these and other facets of the Soviet economy as well as to derive.
total GNP. It is a modification of the accounting system recommended
by the Organization for European Economic Cooperation (OEEC) and the
UN. This system involves a twofold classification of economic trans-
actions, both monetary and nonmonetary. Each transaction is classified
by transactor and by type of economic activity.
Four groups of transactors are distinguished and designated as
"sectors": households, nonagricultural enterprises, agricultural enter-
prises, and the government. The Household Sector comprises all indi-
viduals. The Nonagricultural Enterprise Sector includes all enterprises
and organizations outside of agriculture which produce goods and services
for sale. The Agricultural Enterprise Sector includes all such enter-
prises and organizations in agriculture. The Government Sector com-
prises government agencies and organizations engaged in administration,
education, health, defense, and police services, which are organized for,
but not normally sold to, the community.
Three types of economic activity are distinguished and designated
as "accounts": production, appropriation or consumption, and capital
formation. The Production Account of each sector presents the revenue
and expenses connected with its productive activity. On the credit
side are its sales and other revenues. On the debit side are its pur-
chases of goods and services outside the sector, indirect taxes, capital
consumption allowances, and the factor income generated in the sector.
The Appropriation Account shows on the credit side income received and
on the debit side the disposition of this income. The Capital Account
lists on the credit side the sources of funds for asset formation and
on the debit side the types of asset formation accomplished.
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This classification of economic activity excludes transactions with
foreign countries and thus dispenses with the need for a fourth, or
external, account to record such transactions. In the virtual absence
of a balance of payments for the USSR, it is not possible to construct
an external account. Therefore, it is assumed for the purposes of this
report that the USSR is a closed economy not trading outside its own
boundaries. The effect of this assumption on total GNP and its end use
and origin distributions is considered slight because only net foreign
sales or purchases of 'goods and. services are included in the calculation
of GNP. Thus, whereas exports or imports may be important in individual
Soviet industries, only the difference between total foreign sales and
total foreign purchases affects GNP.
The accounting system used is of the double-entry type. Every
transaction appears twice, once as a credit in an account of the sell-
ing sector and once as :a debit in an account of the purchasing sector.
The sources and methodology used to derive a given transaction are dis-
cussed only once, however, normally in the debit or credit entry of
the sector which has the initiative in determining the size of that
transaction. Thus, for example, Household Sector purchases of goods
and services from the Nonagricultural Enterprise Sector are discussed
fully in the Household; Sector, whereas in the Nonagricultural Enter-
prise Sector this transaction is merely recorded and reference is made
to the discussion of the Household Sector entry.
The double-entry feature provides a check on the accuracy of indi-
vidual estimates and on the consistency of the intersectoral relation-
ships obtained. Wherever possible, debits and credits were estimated
independently. In these cases, statistical discrepancies proved re-
assuringly small. Where data limitations did not permit independent
estimation of debits and credits, it was necessary to derive the total
debits of an account from its total credits, or vice versa. In these
instances the dependence of one side of the account on the other ex-
plains the absence of a statistical discrepancy.
The precision implied by the present set of accounts and the detail
in which the data are presented fail to disclose the ranges of uncer-
tainty which surround particular estimates within the accounts. The
accounting frame of reference used differs from that employed by the
USSR in preparing the data upon which the report rests. For this rea-
son, it has been necessary in many instances to adjust the official
data available to fit this different accounting frame of reference.
Furthermore, on occasion it has been necessary to derive particular
estimates as residuals from larger reported totals. Both of these oper-
ations have been severely hampered. by the lack of detailed data and know-
ledge of what is included in the reported totals. As a result, although
the detailed data presented in the accounts adequately reflect relative
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orders of magnitude, the individual entries should be viewed as having
varying degrees of uncertainty attached to them.
All figures in this research aid are in current (1950) rubles.
Neither the official Soviet exchange rate of 4 rubles per US $1 for
merchandise transactions nor the official Soviet exchange rate of
10 rubles per US $1 for tourist and other "invisible" transactions is
appropriate for converting national accounts entries from rubles to
dollars. Moreover] ruble-dollar ratios cannot be calculated for most
of the entries, because these entries refer to money flows, such as
profits, taxes, and savings, which by their very nature do not have
unit prices that can be compared to construct ruble-dollar ratios.
Ruble-dollar ratios are available, however, to convert into dollars
Soviet GNP as a whole -- that is, total final sales of goods and
services. In section III, Soviet GNP at established prices has been
converted to dollars in order to permit comparison with the GNP of
other countries.
This research aid consists of 3 principal sections and 4 appendixes
which supplement the basic text. In section II the national accounts
of the USSR in 1950 are presented in terms of the 4- sectors and 3 ac-
counts described above. In section III the distribution of GNP by end
use is calculated first at established prices; then, in order to elim-
inate the effect of the unproportionate incidence of indirect taxes
and subsidies, the end-use distribution is adjusted to a factor-cost
basis. In section IV the distribution of national income by sector of
origin is calculated both at established prices and at adjusted factor
cost. In Appendix A, Soviet budget revenues and expenditures are clas-
sified according to national accounts entries. In Appendix B the deri-
vation of various entries in the accounts of the Agricultural Enterprise
Sector is explained. In Appendix C the derivation of various entries
in the capital account of each sector is explained.
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II. Basic National Accounts.
The Household Sector includes all individuals normally resi-
dent in the USSR. Its accounts show their income from labor services
and transfer payments and the use of this income for consumption and
asset formation.
1. Production Account.
The Household Production Account records only the ser-
vices produced and sold by domestic servants, who, according to na-
tional accounting practice, are considered members of the Household
Sector in their working capacity as well as in their capacity as con-
sumers. The production activities of artisans, professional people,
and owners of property are recorded in the Nonagricultural Enter-
prise Sector. The Household Production Account is not included in
this research aid, because the wages of domestic servants and the sale
of domestic services cannot be reliably estimated from available data.
2. Appropriation Account.
Account 1* records on the debit side the disposition of
household income through the purchase of goods and services, taxes,
dues, and other payments to public organizations (such as trade
unions), and saving. On the credit side it lists the sources of in-
come. The various types of income-in-kind are listed both as debits
and as credits.
a. Purchase of Goods and Services from Own Sector.
This entry, which represents the purchase of domes-
tic services from the Household Production Account, cannot be esti-
mated.
b. Purchase of Goods and Services from Other Sectors.
(1) Nonagricultural Enterprise Sector.
(a) State and Cooperative Retail Purchases
of Goods.
Sales to households equals total state and
cooperative retail sales less institutional purchases, household
* Account 1 follows on p. 8.
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Soviet National Accounts, 1950: Appropriation Account
of the Household Sector
Billion Rubles
Purchase of goods and
services from own
sector
Purchase of goods and
services from other
sectors
Nonagricultural
Enterprise Sector 386.1
State and coop-
erative retail
purchases of
goods 325.2
Services !34.5
Rent of state
housing 3.3
Imputed rent 8.8
Forced labor
subsistence 14.3
Agricultural Enter-
prise Sector 255.3
Collective farm
market purchases 48.0
Farm household
income-in-kind 205.5
Other purchases 1.8
Taxes
Dues and other pay-
ments to public
organizations
Insurance premiums
31.0
N.A.
672.li
43.4
6.4
0.5
Income from own sector
Income from other sectors
679.3
Urban cash incomes
Nonagricultural
Enterprise Sector
349.2
249.4
Worker and em-
ployee wages
220.0
Cooperative artisan
wages
Profits distributed
to cooperative
members
Other urban labor
incomes
Agricultural Enter-
prise Sector
4.4
Government Sector
95.4
Government civilian
employee wages
68.8
Military pay
26.6
Rural cash incomes
66.7
Wages in state agri-
culture
14.5
Cash labor-day pay-
ments to collective
farmers
Income of farm house-
holds from sale of
farm products
41.5
Other
0.8
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Soviet National Accounts, 1950: Appropriation Account
of the Household Sector
(Continued)
Saving 35.7 Incomes-in-kind 263.4
Statistical discrepancy -35.7
Military sub-
sistence 31.0
Farm household
income-in-kind 205.5
Imputed rent 8.8
Investment-in-kind 3.8
Forced labor sub-
sistence 14.3
Pensions 35.5
Stipends 4.o
Interest 2.8
Other 1.1
Total 722.7 Total
43.4
722.7
purchases for nonconsumption purposes, and household purchases of minor ser-
vices. Total state and cooperative retail trade in 1950 came to 359.6 bil-
lion rubles. J*
Institutional purchases in 1950 were derived as
follows: two 1955 sources indicate that in "recent years" 7 to 8 percent
of state and cooperative trade was attributable to institutions..?/ For
lack of other data, it is assumed that 7.5 percent of sales by state and
cooperative stores in 1950 were made to institutions -- that is, 27.0 bil-
lion rubles.
Household purchases through state and cooperative
retail trade for nonconsumption purposes include (1) purchases of building
materials for private house building and (2) purchases of producer goods
For serially numbered source references, see Appendix D.
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for farm household production. Purchases of building materials are
estimated at 2.4 billion rubles, the difference between 6.2 billion
rubles, total investment in private housing, and 3.8 billion rubles,
the portion of that investment represented by labor investment-in-kind
(see 3, a, (2), p. 17, below). Purchases of producer goods for farm
household production:are estimated at 1.2 billion rubles (see C, 1, a,
(4), p. 34+, below). Total household purchases for nonconsumption
purchases are thus 3.6 billion rubles.
A question arises as to household purchases
of minor services such as repair of clothing, shoes, and other house-
hold articles. Source J, published in 1951, indicates that such
services were included in the series of trade turnover data. The
same author 4/ earlier indicated that such services were not in-
cluded up to 19+7. Thus, at some date between 19-7 and 1951, these
services were first included in the retail sales data. Evidence
that they were included in the 3.950 turnover comes from another
source 5/ that givessuch services for 1950 (3.8 billion rubles)
and for 1956 (6.0 billion rubles). Because such a series was con-
structed for this apparent purpose, it is here assumed that such
sales were included in retail sales published in official sources
for the year 1950.
Household purchase of goods for consumption
therefore amounted to 325.2 billion rubles, the difference between
total retail trade purchases of 359.6 billion rubles and the sum of
(1) institutional purchases of 27.0 billion rubles, (2) household
purchases for nonconsumption purposes of 3.6 billion rubles, and
(3) household purchases of services in retail trade of 3.8 billion
rubles.
(b) Services.
Household purchases of services have been
estimated at 34.5 billion rubles as the result of constructing esti-
mates fdr individual components. 61 Expenditures in 1950 by house-
holds on education were estimated at 3.5 billion rubles; on health,
1.3 billion rubles; qn household. operations including telecommunica-
tions and utilities,'8.5 billion. rubles; on transportation, 8.7 bil-
lion rubles; on entertainment, 6.6 billion rubles; on personal ser-
vices such as baths, laundries, hairdressing, and hotels, 2.1 bil-
lion rubles; and on minor services included in retail trade sales
(tailoring, watch repair, and the like'), 3.8 billion rubles.
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(c) Rent of State Housing.
Money rent payments in 1950 are estimated at
3.3 billion rubles. This computation is the result of applying the
official maximum rental rate of 1.32 rubles per month per square
meter of dwelling space J to the total average state-owned dwelling
space in 1950 in urban areas of 206 million square meters. The aver-
age living or dwelling space for the year is the stock available on
1 January 1950 (201 million square meters) plus one-half of the
addition to the stock of state-owned urban housing of 10 million
square meters.
(d) Imputed Rent.
Imputed rent of 8.8 billion rubles is the
sum of imputed rent for urban private housing of 1.9 billion rubles
and rural private housing of 6.9 billion rubles. Imputed rent on
owner-occupied housing was calculated by multiplying privately owned
dwelling space, all of which was assumed to be owner-occupied, by
the appropriate rental charge. Dwelling space in urban private
housing in 1950 is estimated at 119 million square meters, or the
stock available on 1 January 1950 of 117 million square meters plus
one-half of net addition to the stock of private urban housing of
4 million square meters for the year. 9/ The imputed rent per
square meter is the average rent of 1.32 rubles per square meter
per month, or 15.8 rubles per year, that is used above in comput-
ing money rent for urban state-owned housing.
In order to compute the imputed rent for
rural housing, the average stock of housing for the year of 878 mil-
lion square meters was derived by adding to the stock on 1 January
1950 of 875 million square meters one-half of the net addition of
6 million square meters for the year. 10 The imputed rent per
square meter of rural housing is assumed to be one-half.of the urban
rate of 1.32 rubles per square meter per month, or 0.66 rubles per
square meter per month.
(e) Forced Labor Subsistence.
(See B, 2, a, (7), p. 25, below.)
(2) Agricultural Enterprise System.
(a) Collective Farm Market Purchases.
Total collective farm market trade turnover
in 1950 was 49.2 billion rubles. ll Part of this total consists of
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institutional sales which must be deducted to obtain the figure for
household purchases; on the collective farm market.
It was estimated (see (1), (a), p. 7, above)
that institutional sales represented 7.5 percent of state and co-
operative retail trade in 1950. This percentage appears to be too
high for collective farm markets for two reasons. (1) Institutions,
such as collective farms, are the major buyers in state retail trade
for nonfood categories, such as building materials. In other non-
food commodities, such as furniture, institutions probably purchase
a larger proportion than the 7,.5 percent for all consumer goods.
(2) Food purchases by institutions will be made from the state and
cooperative retail outlets, wherever feasible, because of lower
prices. Priority is probably given to such institutions whenever
the local state store supply is not adequate to meet effective de-
mand.
Therefore, it is felt that a considerably
lower proportion of collective farm market sales is made to in-
stitutions than would be the case in state and cooperative retail
trade. It is assumed that this proportion comes to 2.5 percent in
the collective farm market trade.
Of the total sales of 49.2 billion rubles
in the collective farm market, 1.2 bil:Lion rubles are therefore
assumed to have been made to institutions, leaving 48.0 billion
rubles of sales to households.
(b) Farm Household Income-in-Kind.
(See C, 1, f, (1), (c), p. 35, below.)
(c) Other Purchases.
(See C, 1, f, (1), (b), p. 35, below.)
(3) Government Sector.
The 31.0 billion rubles of household purchases
from the Government; Sector consist of military subsistence (see
D, 1, c, (3), p. 52, below).
Household tax payments are estimated at 43.4 bil-
lion rubles (see D,2, g, (1), p. 58, below).
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d. Dues and Other Payments to Public Organizations.
This entry represents payments by households to "public
organizations," such as trade unions and the Communist Party, all of
which are classified in the Government Sector. The total of 6.4 bil-
lion rubles consists of 2.6 billion rubles of dues and other payments
to trade unions, 2.8 billion rubles for Communist Party dues and other
payments, and other dues and payments of 1.0 billion rubles.
Dues payments to trade union organizations in 1950
totaled 1.9 billion rubles, or 222.7 percent of the 1946 level. 12
Dues in 1946 were planned at 845 million rubles, for planned expen-
ditures on aid to needy trade union members were stated to be 200.2
million rubles, or 23.7 percent of membership dues. 13 To derive
the nondues payments to trade unions by households, it is necessary
to subtract from total revenues the receipts to trade unions from
social insurance funds. Total trade union revenues in 1950, assumed
equal to expenditures, is estimated at 3.3 billion rubles (see D, 1,
a, (1), (d), p. 50, below). Trade union receipts from social in-
surance funds were 0.7 billion rubles (see D, 2, b, (1), p. 53, below).
Therefore, other fees and payments by the population were 0.7 billion
rubles, the difference between total revenue of 3.3 billion rubles
and dues of 1.9 billion rubles plus social insurance transfer funds
of 0.7 billion rubles. Thus total dues and payments to trade unions
came to 2.6 billion rubles -- 1.9 billion rubles as dues and 0.7 bil-
lion rubles as other fees and payments.
Communist Party dues payments were estimated at 2.4
billion rubles on the basis of information on total membership and
average dues rates. Total Communist Party membership is assumed to
have been 6.6 million in 1950, an estimate between actual membership
of 6.3 million in December 1947 14 and 6.9 million in October 1952. 15
Dues payments are levied according to a sliding scale ranging from
20 kopeks per month for incomes of less than 100 rubles to 3 percent
for incomes of more than 500 rubles per month. 16 If it is assumed
that the average wage of the Communist Party member is more than
twice the average wage of 7,760 rubles per year, or about 18,000 ru-
bles, and if the average dues payment comes to 2 percent, then the
average yearly dues payment is 360 rubles. Multiplied by the esti-
mated number of members in 1950, a total dues income of 2.4 million
rubles is indicated.
Nondues payments to the Communist Party, as in the
case of trade unions, are taken to be the difference between total
revenue and the dues portion of revenue. Total revenue of 2.8 bil-
lion rubles (see D. 1, a, (1), (d), p. 50, below) minus dues of 2.4
billion rubles leaves 0.4 billion rubles as nondues payments from the
population.
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Dues and other payments to miscellaneous organiza-
tions, such as Komsomol and Spartak, are assumed equal to estimated
expenditures of 1.Obzillion rubles (see D, 1, a, (1), (d), p. 50,
below).
e. Insurance Premiums.
(See D, 2, g, (5), P. 59, below.)
f. Saving;.
(See 3, d, p. 19, below.)
gr Statistical Discrepancy.
This :item of 35.7 billion rubles is the difference
between total debit:items of 722.7 billion rubles and total credit
items of 687.0 billion rubles.
h. Income from Owx:i Sector.
This entry, which represents the wages of domestic
servants, cannot be estimated.
i. Income from Other Sectors.
(1)
Urban Cash Incomes.
(a) Nonagricultural Enterprise Sector.
i. Worker and Employee Wages.
(See B, 2, a, (1), p. 22, below.)
ii. Cooperative Artisan Wages.
(See B, 2, a, (2), p. 24, below.)
iii. Profits :Distributed to Cooperative Members.
(See B, 2, a, (3), p. 24, below.)
iv. Other Urban Labor Incomes.
(See B, 2, a, (4), p. 25, below.)
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(b) Agricultural Enterprise Sector.
Urban household cash income from the Agri-
cultural Enterprise Sector was 4.4 billion rubles, the amount re-
ceived for the sale of farm products (see C, 2, a, (4), (b), p. 42,
below).
(c) Government Sector.
i. Government Civilian Employee Wages.
(See D, 1, a, (1), p. 50, below. )
ii. Military Pay.
(See D, 1, a, (2), p. 51, below.)
(2) Rural Cash Incomes.
(a) Wages in State Agriculture.
(See C, 2, a, (1), p. 38, below: )
(b) Cash Labor-Day Payments to Collective Farmers.
(See C, 2, a, (2), (a), p. 41, below.)
(c) Income of Farm Households from Sale of Farm
Products.
(See C, 2, a, (4), (a), p. 42, below.)
(d) Other.
Other income consists of collective farm
administrative wages and wages of hired labor. (See C, 2, a, (2),
(b) and (c), pp. 41 and 42, respectively, below.)
(3) Incomes-in-Kind.
(a) Military Subsistence.
(See D, 1, c, (3), p. 52, below.)
(b) Farm Household Income-in-Kind.
(See C, 1, f, (1), (c), p. 35, below.)
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(c) Imputed Rent.
(See b, (1), (d), p. 11, above.)
(d) Investment-in-Kind.
(See 3, a, (2), p. 17, below.)
(e) Forced Labor Subsistence.
(See B, 2, a, (7), p. 25, below.)
j. Transfer Receipts.
(1) Pensions.
(See D, 2, b, (1), p. 53, below.)
(2) Stipends.
(See D, 2, b, (2), p. 55, below.)
(3) Interest.
(See D, 2, b, (A p. 55, below.)
(lb) Other.
This item is the sum of cash payments to collec-
tive farmers from collective farm social-cultural funds, 0.6 billion
rubles (see C, 2, a, (3), p. 14.2, below), and insurance indemnity pay-
ments to the population of 0.5 billion rubles (see D. 2) b, (4),
p. 56, below.)
3. Capital Account.
Account 21 lists as debits the various kinds of house-
hold asset formation and as credits the sources of funds for this
asset formation.
a. Gross Capital Formation.
(1) Capital Repairs.
This entry cannot be reliably estimated from
available data. In any case, the amount is considered to be negligible.
* Account 2 follows on p. 17.
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Soviet National Accounts, 1950: Capital Account
of the Household Sector
Gross capital formation 6.2 Saving
Capital repairs N.A. Net borrowing from
New fixed investment 6.2 Government Sector 1.0
Capital transfers to
Government Sector 28.7
Net purchase of govern-
ment bonds
Additions to savings
deposits
25.6
36.7 Total
36.7
(2) New Fixed Investment.
New fixed investment of 6.2 billion rubles repre-
sents the value of private urban and rural housing constructed in
1950. The former is estimated at 2.2 billion rubles and the latter
at 4.0 billion rubles. 17 (Also see Appendix C, section 1.)
It is estimated that investment-in-kind, in the
form of the labor furnished by individuals building their houses,
represents one-half of the value of urban private housing construc-
tion and two-thirds of the value of rural private housing construc-
tion. Total investment-in-kind in private housing is thus estimated
at 1.1 billion plus 2.7 billion, or 3.8 billion, rubles.
b. Capital Transfers to the Government Sector.
(1) Net Purchase of Government Bonds.
(See D, 3, f, (1), p. 64, below.)
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(2)'Additions to Savings Deposits.
;(See D, 3, f, (2), p. 65, below.)
c. Additions to Cash Balances.
This estimate is based on wage bill rates and. the
1940 relationship of! wage bill to currency in hands of households.
First, it is assumed that all of the increase during 1950 in cur-
rency outside the banking system occurred in the holdings of house-
holds -- that is, that there was no change in the currency holdings
of enterprises. Second, it is assumed that total currency in cir-
culation bore the same relation to the worker and employee wage bill
in 1955 that it did in 1940.
The average amount of currency in circulation in
1940 was approximately 15.3 billion rubles, and the wage bill for
workers and employees was estimated at 126.4 billion rubles. 18/
Currency in circulation thus amounted to 12.1 percent of the wage
bill in 1940.
In order to apply this percentage, the annual wage
bill at the rate of ::l January 1950 and 1 January 1951 must be esti-
mated. Currency in'circulation on those two dates may then be com-
puted and the increase determined.
The annual worker and employee wage bill at the
1 January 1950 rate !is assumed to be the mean of the wage bills for
191+9 and 1950. The 1949 wage bill is estimated at 286.3 billion
rubles, the product of the average number of workers and employees
of 36.9 million times the estimated annual average wage of 7,760
rubles. The average number of workers is derived as follows; the
average number of workers and. employees in 1950 was 38.9 million. l9j
The 1950 plan fulfillment report 20 indicated that the end-of-year
number of workers and employees (1950) was 2 million above the end
of 1949. It is assumed that the average number of workers and em-
ployees for 1950 is'also 2 million above 1949 and that therefore the
estimated average number of workers and. employees for 1949 would be
36.9 million (38.9 million minus 2 million). The estimated average
wage of 7,760 rubles for 1950 2:/ was assumed to be the same for
1949. The total wage bill for 1950 comes to 301.9 billion rubles,
the product of 38.9 million workers and. employees and an average
annual wage of 7,760 rubles.
The mean for the 191+9 and 1950 wage bills, 294.1
billion rubles, is assumed to represent the wage bill at the
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1 January 1950 rate. Currency in circulation on 1 January 1950 is
estimated at 12.1 percent of this amount, or 35.6 billion rubles.
The wage bill rate of 1 January 1951 is the mean of
the 1950 and 1951 wage bills. The 1950 wage bill of 301.9 billion
rubles was given above. The 1951 wage bill is the product of the
annual average. number of workers and employees of 40.7 million 22
and the annual average wage of 7,760 rubles, or 315.8 billion rubles.
The annual average wage for 1950 (see above) was assumed to be the
average for 1951. The 1 January 1951 rate is the mean of the 1950
and 1951 wage bills, or 308.9 billion rubles. Currency in circula-
tion on 1 January 1951 is thus estimated at 12.1 percent of this
1 January 1951 rate, or 37.4 billion rubles.
The increase in 1950 in currency in circulation,
all of which is assumed to represent an increase in currency hold-
ings of the population, is therefore estimated to be 1.8 billion
rubles, the difference between currency in circulation on 1 January
1950, 35.6 billion rubles, and on 1 January 1951, 37.x+ billion rubles.
d. Saving.
Saving is derived as a residual -- that is, the dif-
ference between total credits, which are equal to total debits, and
the one known credit item, net. borrowing from the Government Sector.
e. Net Borrowing from the Government Sector.
(See D, 3, b, p. 62, below.)
B. Nonagricultural Enterprise Sector.
This sector comprises all state enterprises outside agricul-
ture, producer and consumer cooperatives, and independent artisans
and professional men. It also includes certain imputed activities,
such as the self-rental or owner-occupied dwellings and the labor
furnished by individuals building their own houses.
1. Production Account.
Account 3* records as debits the production expenses of
the sector and as credits its revenue from sales and its subsidies.
a. Purchases from Other Sectors.
(See C, 1, f, (2), p. 36, below.)
Account 3 follows on p. 20.
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Soviet National. Accounts, 1950: Production Account
of the Nonagricultural Enterprise Sector
Purchases from Other
Sectors (A
ricultural
Sales to Other Accounts
704.3
g
Enterprise Sector)
32.1
Household Sector
392.3
Indirect taxes
2
55.-
Appropriation ac-
Turnover taxes
236.1
count
386.1
Other enterprise
Capital account
6.2
taxes and payments .19
3
.
Nonagricultural
Capital consumption
.Enterprise capital
allowances
27.6
account
139.5
Income originated
363.0
Agricultural Enter-
Statistical discrepancy
43.]..
:prise Sector
35.3
Production account
16.2
Capital account
19.1
Government Sector
137.2
Production account
121.8
Capital account
15.4
Subsidy receipts 16.9
721.2. Total
b. Indirect Taxes.
(1) Turnover Taxes.
(See D, 2, g, (2), (c), p. 59, below. )
(2) Other; Enterprise Taxes and Payments.
Other enterprise taxes and payments are estimated
at 19.3 billion rubles, the difference between the total of other
enterprise taxes and payments and the sum of (a) those taxes and pay-
ments borne by the Agricultural Enterprise Sector and (b) payments to
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the banking system from the Nonagricultural Enterprise Appropriation
Account.
Billion Rubles
Other enterprise taxes and payments
(see D, 2, g, (2), (d), p. 59, below) 22.0
Less: Indirect taxes of Agricultural
Enterprise Sector (see C, 1,
b, p. 34, below)
Payments to banking system by
cooperatives (see 2, b, (3),
p. 27, below)
Equals: Other enterprise taxes and pay-
ments from the Nonagricultural
Enterprise Production Account 19.3
c. Capital Consumption Allowances.
It is estimated that capital consumption allowances
for the nonagricultural sector came to 27.6 billion rubles (see
Appendix C, section 3).
d. Income Originated.
(See 2, d, p. 27, below.)
e. Statistical Discrepancy.
This item represents the excess of all credits, 721.2
billion rubles, over the sum of all debits, 678.1 billion rubles.
f. Sales to Other Accounts.
(1) Household Sector.
(a) Appropriation Account.
(See A, 2, b, (1), p. 7, above.)
(b) Capital Account.
(See A, 3, a, (2), p. 17, above.)
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(2) Nonagricultural Enterprise Capital Account.
(See 3, a, p. 28, below.)
(3) Agricultural Enterprise Sector.
(a,) Production Account.
(See C, .1, a, p. 32, below.)
(b) Capital Account.
This item of 19.1 billion rubles is the dif-
ference between total gross capital formation in agriculture, 28.3 bil-
lion rubles (see C, 3, a, p. 46, below) and that part represented
by purchases from the Agricultural Enterprise Production Account
9.2 billion rubles (see C, 1, f, (3), p. 37, below).
(4) Government Sector.
(a) Production Account.
(See D, 1, c, p. 51, below.)
(b) Capital Account.
(See 1), 3, c, p.. 63, below.)
g. Subsidy Receipts.
Total of transfers to Nonagricultural Enterprise
Sector of 16.9 billion rubles (see D, 2, c, p. 56, below).
2. Appropriation Account.
Account )* shows the distribution of the -income originated
in the Nonagricultural Enterprise Sector.
a. Payments to the Household Sector.
(1) Worker and Employee Wages.
Wages of workers and employees of the Nonagri-
cultural Enterprise Sector are equal to the total worker and employee
wage bill, 301.9 billion rubles, less wages of workers and employees
in other sectors, 81.9 billion rubles, or 220.0 billion rubles. The
* Account follows on p. 23.
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total worker and employee wage bill of 301.9 billion rubles was ob-
tained by multiplying the average number of workers and employees
for 1950, 38.9 million, 23 by the estimated average annual wage of
7,760 rubles. 24
Soviet National Accounts, 1950: Appropriation Account
of the Nonagricultural Enterprise Sector
Payments to Household Sector 276.3 Income originated 363.0
Worker and employee wages 220.0
Cooperative artisan wages 11.6
Profits distributed to co-
operative members 0.8
Other urban labor incomes 17.0
Imputed rent 8.8
Investment-in-kind 3.8
Forced labor subsistence 14.3
Payments to Government Sector 57.0
Direct taxes 40.4
Profits taxes of state
enterprises 38.3
Income taxes of coopera-
tives 2.1
Social insurance 16.2
Payments to banking system
by cooperatives 0.6
Saving 29.5
State enterprises 27.2
Cooperatives 2.3
363.0 Total
363.0
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Worker and employee wages outside the Nonagricul-
tural Enterprise Sector are 81.9 billion rubles, the sum of those in
the Agricultural Enterprise Sector, 14.5 billion rubles, and those in
the Government Sectors, 67.4 billion rubles.
The Agricultural Enterprise Sector wage figure
consists of wages of state sector agricultural workers and employees
(see C, 2, a, (1), p. 38, below). The government sector wage bill is
equal to the government civilian wage bill of 68.8 billion rubles (see
D, 1, a, (1), p. 50, below) minus wages paid to employees of the
Communist Party (1.4 billion rubles), which, according to a Soviet
source, are not included in the "worker and employee" figures. 25
(2) Cooperative Artisan Wages.
It is assumed that the wage level is the same
as the average wage for workers and employees, 7,760 rubles per year.
This wage times the number of cooperative artisans at the end of year,
1.5 million, gives a total. wage bill of 11.6 billion rubles. The
number of cooperative artisans was derived from a Soviet source .26
which stated that the' number of artisans at the end of 1954, 1,961,000,
was 31 percent above the number at the end of 1950.
(3) Profits Distributed to Cooperative Members.
This entry is the sum of estimated profit distribu-
tion to members of producer cooperatives, 0.5 billion rubles, and to
members of consumer cooperatives, 0.3 'billion rubles.
In. 1950, total profits of producer cooperatives
came to 3.9 billion rubles. 27,/ To derive net profits, it is neces-
sary to deduct income tax payments by producer cooperatives. In
1950 these taxes amounted to 1.6 billion rubles (see D, 2, g, (2),
(b), p. 58, below) Net profits are distributed among several pur-
poses according to fixed percentages, 2' On the basis of these per-
centages the distribution of total profits is estimated as follows:
Total profits
3.9
Less:
Income taxes
1.6
Equals:
Net profits
2.3
Distributed to members (20 percent)
0.5
Paid to:Trade
creditfund
Bank for long-term
(20 percent)
0.5
Reinvestment
(50 percent)
1.1
Other, including health and old age
measures and social facilities
(10 percent)
0.2
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For consumer cooperatives, total profits in 1950
came to 1.9 billion rubles. 29 Consumer cooperatives pay an income
tax equal to 25 percent of profits (see D, 2, g, (2), (b), p. 58,
below). Net profits are therefore equal to gross profits of 1.9 bil-
lion rubles less the income tax of 0.5 billion rubles, or 1.4 bil-
lion rubles. Consumer cooperative net profits are distributed accord-
ing to a fixed schedule, 30 which gives the following results:
Total profits 1.9
Less: Income taxes 0,5
Equals: Net profits 1.1+
Distributed to members (20 percent) 0.3
Paid to State Bank for credit fund
(10 percent) 0.1
Reinvestment (50 percent) 0.7
Other (20 percent) 0.3
(4) Other Urban Labor Incomes.
This category includes payments from special funds,
such as the director's fund and funds for stimulating "socialist com-
petition"; incomes of individual artisans, such as barbers and photo-
graphers; and incomes of persons, such as doctors and plumbers, who
furnish their services in a "private" capacity in addition to working
as state employees.
An official British study of Soviet national in-
come and product estimates the level of these incomes at 17 billion
rubles for 19+8 and 16.5 billion rubles for 1951. 31 An estimate of
17 billion rubles for 1950 is accepted here.
(5) Imputed Rent.
(See A, 2, b, (1), (d), p. 11, above.)
(6) Investment-in-Kind.
(See A, 3, a, (2), p. 17, above.)
(7) Forced Labor Subsistence.
The subsistence cost for forced laborers is esti-
mated at 1tt-.3 billion rubles. A study of forced labor subsistence for
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1955 has revealed a consistent deduction of 260 rubles a month from
the monthly credit of the average wage of 400 rubles. 32 The same
study revealed that the size of the over-all basket of goods and
services that go into the subsistence of these workers (size of food
rations, clothing, and the like) increased approximately one-third
over the period 1950-55. Therefore, assuming that the relative
composition of the components of the basket of goods and services
did not change during 1950-55, the 1950 subsistence can be estimated
to have been two-thirds of the 1955 allowance, or 173 rubles, in
terms of 1955 prices.
.To convert the subsistence credit of 173 rubles
in 1955 prices to 1950 rubles, a price index for foodstuffs sold at
the state retail level is used. (The pricing of forced labor sub-
sistence is done at retail prices.) The official price index for
1950 is 14,4 if 1955 is used as the base. Although it is true that
the weights used in constructing this index are significantly dif-
ferent from those that would be used in pricing the commodities of
the forced laborers' consumption; the relative price changes for
individual commodities important in the diet of the forced laborer
are generally in agreement with the over-all price change for state
retail sales. Nonfood price changes are ignored on the ground that
the food component of the subsistence credit is the major component. 3J3,
:Applying the price index of i4- to the subsist-
ence allowance at 1955 prices of 173 rubles a month, a subsistence
of 249 rubles a month, or 2,988 rubles a year, is computed for 1950-
:It has been estimated that the forced labor
force in 1950 was 4.8 million. 34+ Therefore, the total subsistence
bill can be estimated at 14.3 billion rubles.
b. Payments to the Government Sector.
(1)'Direct Taxes.
(a) Profits Taxes of State Enterprises.
Profits taxes on all enterprises came to
38.3 billion rublesin 1950 (see D, 2, g, (2), (a), p. 58, below).
From this amount should be subtracted the profits taxes paid by
the Agricultural Enterprise Sector. In 1950 this tax was estimated.
to be zero (see C, 2, b, (1), (a), p. 43, below). Therefore, the
38.3 billion rubles profits tax can be assumed to be from the Non-
agricultural Enterprise Sector..
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(b) Income Taxes of Cooperatives.
(See a, (3), p. 24, above.)
(2) Social Insurance.
Social insurance payments by the Nonagricultural
Sector are 16.2 billion rubles, the difference between the total pay-
ments of 19.6 billion rubles (see D, 2, g) (3), p. 59, below) and the
sum of (1) 2.8 billion rubles paid by the Government Sector (see D,
1, b, p. 51, below) and (2) 0.6 billion rubles paid by the Agriculture
Sector (see C, 2, b, (2), p. 43, below).
(3) Payments to Banking System by Cooperatives.
This entry consists of transfers from profits of
producer cooperatives of 0.5 billion rubles and from profits of con-
sumer cooperatives of 0.1 billion rubles (see a, (3), p. 24+, above).
c. Saving.
(1) State Enterprises.
Total profits of state enterprises in 1950 were
65.5 billion rubles. 35 As state farm profits have been estimated
elsewhere (see C, 2, b, (1), (a), p. 43, below) as zero for 1950,
these total profits represent only those for the Nonagricultural Enter-
prise Sector.
Profits taxes have been given as 38.3 billion
rubles (see b, (1), (a), p. 26, above). Thus the retained earnings
are the difference between total profits of 65.5 billion rubles and
the tax of 38.3 billion rubles, or retained earnings of 27.2 billion
rubles.
(2) Cooperatives.
This entry is the sum of retained earnings of
producer cooperatives, 1.3 billion rubles, and of consumer coopera-
tives, 1.0 billion rubles, or a total of 2.3 billion rubles (see a,
(3), p. 24, above).
d. Income Originated.
Income originated, 363.0 billion rubles, is the sum
of debit items in the Nonagricultural Enterprise Appropriation Account.
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3. Capital Account.
Account 5 shows the asset formation of the
sources from which it is financed.
Soviet National Accounts, 1950: Capital Account
of the Nonagricultural Enterprise Sector
Gross capital formation
139.5)
Capital repairs !
21.3
New fixed investment
102.4
Additions to inven-
tories
15.8
Capital transfer tol
government sector
2.1.
Other
6.2
Statistical discrepancy
3.9
Saving
Capital consumption
allowances
Capital transfer
from government
sector
Net borrowing from
27.6
85.7
government sector 8.9
151.7 151.7
a. Gross Capital Formation.
(1) Capital Repairs.
The total of 21.3 billion rubles is made up of
18.3 billion rubles from amortization allowances; 2.5 billion rubles
from retained profits; and 0.5 billion rubles from other sources
(see Appendix C, section 2).
(2) New Fixed Investment.
The total of 102.4 billion rubles is the sum of
budget-financed investment of state enterprises, 80.9 billion rubles;
investment of state enterprises financed by amortization allowances,,
9.3 billion rubles; investment of state enterprises financed by re-
tained earnings, 10.0 billion rubles; and additional investment by
cooperatives and by state enterprises, 2.2 billion rubles (see
Appendix C, section 1).
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(3) Additions to Inventories.
Additions to inventories are estimated at 15.8
billion rubles, or 72 percent of total increase in working capital.
Total increase in working capital consists of retained earnings
devoted to expansion of working capital of 8.7 billion rubles, capi-
tal transfers from the Government Sector for expansion of working
capital of 4.8 billion rubles, and the net increase in short-term
borrowing from the State Bank of 8.5 billion rubles.
Capital transfers from the Government Sector for
the expansion of working capital are estimated below (see D, 3, a,
(1), p. 61, below). The part of short-term loans considered for
the Nonagricultural Sector of 8.5 billion rubles (see D, 3, b,
p. 62, below) is believed to be all for the expansion of working
capital. The use of this method to finance "modernization" schemes
was not introduced until 1953.
The working capital expansion from retained earn-
ings is estimated as follows. The planned share of retained profits
for all state enterprises is known for 19+9 and 1954. In both years
the planned expenditures for this purpose out of planned retained
profits come to 32.0 percent, 36/ as shown in the following tabulation:
Year
Retained Profits (Plan)
Expenditures on Working Capital
Percent
19+9
35.6
11.4
32.0
195+
33.6
10.8
32.0
Using this relationship for 1950 by applying the percentage to actual
retained profits for the state enterprises of the Nonagricultural
Sector gives an estimated expenditure of 8.7 billion rubles for work-
ing capital.
Additions to inventories are estimated at 72 per-
cent of the total increase in working capital on the basis of the
distribution of working capital by use on 1 January 1951. 37/ Although
the distribution of working capital presented in the Soviet source in-
cludes state agricultural organizations (state farms and machine tractor
stations -- 'WS's), the weight in total working capital of this sector
is small and the pattern of their distribution is not greatly different
from the total sector pattern.
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b. Capital Transfers to the Government Sector.
(See D, 3, g, p. 65, below.)
c. Other.
An estimated 6.2 billion rubles, or the remaining 28
percent of the increase in working capital calculated above (see a,
(3), p. 24, above),:consisted of net receivables and deposits and
cash.
d. Statistical Discrepancy.
This entry represents the difference between total
debit items of 147.8 billion rubles and credit items of 151.7 bil-
lion rubles.
e. Saving.
(See 2, c, p. 27, above.)
f. Capital Consumption Allowances.
(See 1, c, p. 21, above. )
g. Capital Transfers from the Government Sector.
(See D, 3, a, (1), p. 61, below. )
h. Net Borrowing from the Government Sector.
(See D, 3, by p. 62, below.)
C. Agricultural Enterprise Sector.
1. Production Account.
In Account 6,* intrasectoral purchases and sales for cur-
rent production purposes have been canceled out. Purchases include
only purchases from:other sectors, and sales include only sales to
other sectors and sales of capital goods and. services to the Agricul-
tural Enterprise Capital Account.
* Account 6 follows on p. 31.
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Account 6
Soviet National Accounts, 1950: Production Account
of the Agricultural Enterprise Sector
Purchases from other
Sectors
16.2
MTS's
5.3
State farms
1.8
Collective farms
.7.9
Farm households
1.2
Indirect taxes
2.1
Capital consumption
allowances
1.4
Income originated
290.2
Statistical discrepancy
0.4
Enterprise Sector
32.1
State and coopera-
tive acquisitions
30.9
Sales to institu-
tions
Agricultural enter-
prise capital account
9.2
Sales of other ac-
counts
296.6
Collective farm
ex-village mar-
ket trade
48.0
Other sales
1.8
Farm household
income-in-kind
Nonagricultural
Sales to fixed in-
vestment
4.9
Sales to capital
repairs
Additions to inven-
tories
Subsidy receipts
MTS's
5.5
State farms
8.2
310.3 Total
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a. Purchases from other Sectors.
Purchases from the Nonagricultural Enterprise Sector
by the four types of agricultural producers totaled 16.2 billion
rubles. Generally speaking, this estimate, calculated from indirect
data, is subject to a significant margin of error.
(1) MTS's.
MTS expenditures for all purchases except new
fixed investment are estimated at 11.3 billion rubles for 1950, the
sum of (a) expenditures of 10.7 billion rubles involved in plowing
318 million hectares 38 at an operating cost of 33.75 rubles per
hectare 39 and (b) O billion rubles for operations which cannot
be expressed in terms of standard plowing. The latter number, which
is assumed to represent additions to inventories, was estimated on
the basis of data for 19`53 when budget allocat=ions to MTS's amounted
to 20.6 billion rubles, of which investment amounted to 5.7 billion
rubles. IEO The residual of 14.9 billion rubles represented operating
outlays and differed from 14.1 billion rubles, total expenditures in-
curred in plowing 486 million hectares 41/ at a cost of 28.92 rubles
per hectare, 42 by about 5 percent. Thus for 1950 it was assumed that
total expenditures for plowing of 10.7 billion rubles represented about
95 percent of total operating outlays by MTSts. Thus total outlays were
estimated at about 11.3 billion rubles.
Of .the total costs of 10.7 billion rubles in-
curred in standard plowing, 4.2 billion rubles were spent for fuel
and lubricants; 3.2 billion rubles for both current and capital re-
pair of tractors and agricultural machinery and. for wage expendi-
tures therein incurred; 3.0 billion rubles for wages of production
workers and other MTS personnel; and 0.3 billion rubles for ad-
ministrative-economic expenditures. 43
Materials purchases are estimated at 5.3 billion
rubles; the sum of expenditures for fuel. and lubricants at 4.2 billion
rubles; spare parts and; repair materials for current repairs at 0.8
billion rubles, estimated at one-quarter of total expenditures for
repairs on the assumption that (a) total repairs are 50 percent cur-
rent repairs and 50 percent capital repairs and (b) that the value
of spare parts and repair materials amounts to about 50 percent of
total expenditures for MIS current repairs 44/; and administrative-
economic expenditures at 0.3 billion rubles.
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(2) State Farms.
Total materials purchases by state farms are esti-
mated in Appendix B, section 3, at 2.0 billion rubles. To derive pur-
chases outside agriculture, it is necessary to deduct purchases within
agriculture from the total. It is thought that the only important
purchase by state farms within agriculture for current operations is
the purchase of seed and fodder from other state farms. In the
absence of data on the distribution of state farm materials purchases,
this item has been estimated on the basis of the seed and fodder costs
of collective farms, which amounted to 23.3 percent of collective
farm production expenditures in 1954 and to 20.9 percent in 1955. L5/
State farm outlays for this purpose are estimated at 10 percent of
state farm operational purchases, in recognition of two differences
between collective farm and state farm production expenditures. First,
a greater share of state farm purchases is associated with the opera-
tion of capital equipment, such as tractors and combines. Second,
state farms, many of which are quality seed-breeding establishments,
are generally more self-sufficient in meeting their seed. requirements.
Therefore, 10 percent was deducted from total materials purchases of
2.0 billion rubles to obtain purchases of 1.8 billion rubles outside
the Agricultural Enterprise Sector.
(3) Collective Farms.
Purchases of 7.9 billion rubles by collective
farms are the sum of production purchases, 7.8 billion rubles, and
other purchases of 0.1 billion rubles.
In Appendix B, section 1, it is estimated that
total money "production expenditures" of collective farms, consist-
ing of materials purchases for current operations and additions to
inventories, payments to hired nonconstruction labor, and money pay-
ments for services of MTS's amounted to 12.1 billion rubles. From
this total must be deducted 4.3 billion rubles, representing (a) the
sum of payments to MTS's for services rendered, 0.7 billion rubles
(see f, (2), (a), p. 36, below); (b) wages for hired nonconstruction
labor, 0.4 billion rubles (see Appendix B' section 1); (c) materials
purchases within the Agricultural Enterprise Sector, 2.8 billion
rubles; and (d) materials purchases for additions to inventories,
0.4 billion rubles. Materials purchases within the Agricultural
Enterprise Sector are assumed to consist of seed and fodder purchases,
which in 1954 represented 23.3 percent of total production expendi-
tures and in 1955, 20.9 percent. 46 It is assumed for 1950 that
about 23 percent of the total production expenditures of 12.1 billion
rubles, or 2.8 billion rubles, were spent for purchases of seed and
fodder. It is further assumed that all of these seed and fodder
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purchases were from selected collective farms. Purchases for addi-?
tions to inventories are estimated at a total of 0.7 billion rubles
(see 3, a, (3), p. 47, below), of which 0.3 billion rubles were
assumed to have been financed by bank credit (see 3, f, p. 48, below)
outside the "production expenditures" outlay derived in Appendix B,
section 1.
To production purchases of 7.8 billion rubles
are added 0.1 billion rubles of the collective farms' "administra-
tive-economic expenditures" of 0.5 billion rubles (see Appendix B,
section 1) in order to allow for purchases of office supplies and
services.
(L1);Farm Households.
This entry is necessarily a very rough estimate
and is based on two assumptions. First, Bergson's estimate that
10 percent of the income of farm households from the sale of farm
products is absorbed by money expenses of production is accepted. 47/
Second, assuming negligible purchases f.'or capital investment, it is
believed that most of these expenses consist of purchases within
agriculture and that a small share of them, nominally estimated at
25 percent, represents purchases from other sectors. Accordingly,
it is assumed that 2.5 percent of gross farm household income from
the sale of farm products estimated below (see discussion in 2, a,
(4), p. 42, below) at 47.7 billion rubles, or 1.2 billion rubles,
was spent for purchases from the Nonagricultural Enterprise Sector.
b. Indirect Taxes.
This entry is the sum of taxes paid by collective
farms, 1.0 billion rubles; by state farms, 0.5 billion rubles; and
by farm households, 0.6 billion rubles. It is assumed that tax
payments by MTS's, as gross budgetary institutions, were negligible.
The collective farm estimate is composed of collective farm market
fees and other taxes (see Appendix B, sections 1 and 2). State
farms, in the aggregate forming a smaller establishment than collec-
tive farms, are assumed to have made a smaller payment, estimated at
0.5 billion rubles. Collective farm :market fees of farm households
are. roughly estimated at 0.3 billion rubles (see Appendix B. section 2),
and it is assumed that cattle taxes and other fees amounted to the
same sum, bringing total collections from farm households to 0.6 bil-
lion rubles.
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c. Capital Consumption Allowances.
In the Agricultural Enterprise Sector, only state
farms charge amortization allowances as an expense against revenue.
The estimate of 1.4 billion rubles is obtained by applying the state
farm amortization rate of 7.2 percent 48 to the value of state
farm fixed assets at the beginning of 1950, 20 million rubles. 49
d. Income Originated.
(See 2, d, p. 44, below.)
e. Statistical Discrepancy.
This item represents the excess of the sum of all
credits, 310.3 billion rubles, over the sum of all debits, 309.9
billion rubles.
f. Sales to Other Accounts.
(1) Household Sector.
(a) Collective Farm Ex-Village Market Trade.
(See A, 2, b, (2), (a), p. 11, above.)
(b) Other Sales.
This entry represents sales of services and
nonagricultural products to the population by collective farms. In
1950, 3.5 billion rubles of collective farms' money income consisted
of "other income." 50 This category consists of revenue from the
sale of services, such as milling of collective farmers' grain; of
revenue from subsidiary enterprises which produce nonagricultural
commodities such as building materials; and of revenue from the sale
of firewood. It is arbitrarily assumed that half of this income
consisted of sales of capital goods (such as bricks and timber)
between collective farm and the other half of sales to the popula-
tion.
(c) Farm Household Income-in-Kind.
(See Appendix B, section 4.)
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(2) Nonagricultural Enterprise Sector.
(a) State and Cooperative Acquisitions.
This entry consists of sales to state and
cooperative procurement organizations by MTS's, 2.9 billion rubles;
by state farms, 4.6 billion rubles; by collective farms, 21.3 bil-
lion rubles; by rural farm households, 1.6 billion rubles; and by
urban farm households, 0.5 billion rubles.
In 1.950, total MTS revenue, from money pay-
ments and in-kind payments by collective farms, was 3.6 billion
rubles. 51 Of the total revenue, money payments represented 17 per-
cent for 1936; 21 percent for 195+; and 19 percent for 1955. For
1950 it is assumed that money payments from collective farms for
services rendered by MTS's amounted to about 20 percent of total
revenues of 3.6 billion rubles, or about 0.7 billion rubles. Be-
cause the money payments are intrasectoral payments, from one agri..
cultural producer to another, for current production purposes, they
are excluded from both sales (credits) and purchases (debits) in
these accounts. Revenue of 2.9 billion rubles (3.6 less 0.7) from
crop deliveries to procurement organizations, which are' classified
in the Nonagricultural Enterprise Sector, is, however, recorded as
an intrasectoral transaction.
State farm sales outside agriculture are
estimated at 4.6 billion rubles by deducting from estimated total
sales, 5.6 billion rubles (see Appendix B, section 3), the estimated
amount of sales within agriculture, 1.0 billion rubles. These sales
within the Agricultural Enterprise Sector consist of sales of seed
and fodder to other state farms, 0.2 billion rubles (see a, (2),
P. 33, above), and sales of :Livestock to collective farms, 0.8 bil-
lion rubles. The estimate of livestock sales is based on the as-
sumption that collective farms made about a quarter of their total
estimated purchases of 3.2 billion rubles (see a, (3), p. 33, above)
from state farms and three-quarters from collective farmers.
Collective farm sales to state and coopera-
tive organizations in 1950 were reported as 21.3 billion rubles. 53/
Sales to state procurement organizations by
rural farm households and by urban farm households are estimated in
Appendix B, section 2, at 1.6 billion rubles and 0.5 billion rubles,
respectively.
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(b) Sales to Institutions on Collective Farm Market.
(See A, 2, b, (2), (a), p. 11, above.)
(3) Agricultural Enterprise Capital Account.
(a) Investment-in-Kind.
This entry consists of collective farm labor used
in construction, 0.7 billion rubles (see Appendix C, section 1), and net
changes in livestock inventory for all categories of farms of 1.6 billion
rubles (see 2, c, (3), p. 44, below).
(b) Sales to Fixed Investment.
This item consists of purchases of capital goods,
such as livestock and building materials, by collective farms from within
the Agricultural Enterprise Sector. Total collective farm livestock
purchases in 1950 amounted to 3.2 billion rubles. 54 In addition, it
is estimated that collective farms purchased 1.7 billion rubles of other
capital goods from other collective farms (see (1), (b), p. 35, above).
(c) Sales to Capital Repairs.
This entry records the use of internal labor
resources for capital repair projects. It is assumed that all materials
used in agricultural capital repairs were purchased from the Nonagricul-
tural Enterprise Sector but that all labor used for this purpose was
furnished by the Agricultural Enterprise Sector itself. Because farm
household outlays for capital repairs are considered negligible, this
entry is the sum of the labor cost of capital repairs of MTS's, 1.0 bil-
lion rubles; of state farms, 0.7 billion rubles; and of collective farms,
0.3 billion rubles.
In the case of state agriculture, it is assumed
that labor cost constituted 60 percent of total capital repairs. This
share is applied to MTS capital repairs of 1.6 billion rubles (see 3,
a, (1), (a), p. 46, below) to obtain an MTS labor cost of 1.0 billion
rubles and to state farm capital repairs of 1.2 billion rubles (see 3,
a, (1), (b), p. 46, below) to obtain a state farm labor cost of 0.7 bil-
lion rubles. The cost of collective farm labor devoted to capital re-
pairs is roughly estimated at 0.3 billion rubles (see Appendix C, sec-
tion 2).
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(d) Additions to Inventories.
This entry represents sales of agricultural
products to agricultural. producers for the purpose of building up their
working inventories. It is believed that procurement organizations, in
carrying out the government's policy of building up state reserves,
left little excess production on the farms for these working inventories.
Thus the size of this item is believed to be negligible.
g. Subsidy Receipts.
(1) MTSs.
ML'S subsidies are defined here as appropriations from
the budget for MPS operating expenditures (excluding appropriations for
capital repairs and for additions to inventories) less revenues credited
to the MTS's for money and in-kind payments received from collective
farms.' Total budgetary appropriations for MI'S operating expenses amounted
to 11.3 billion rubles (see a, (1), p. 32,.above) of which it is esti-
mated that 1.6 billion rubles were allocated for capital repairs and 0.6
billion rubles for additions to inventories (see 3, a, (3), p. 1+7, be--
low). From the remaining 9.1 billion rubles are deducted MPS revenues
of 3.6 billion rubles.(see f, (2), (a), p. 36, above) to obtain a dif-
ference or subsidy of 5.5 billion rubles.
(2) State Farms.
The state farm subsidy is estimated at 8.2 billion
rubles (see Appendix B, section A.
2. Appropriation Account.
Account 7* shows the distribution of income originated in
a. Payments to Household Sector.
(1) Wages in State Agriculture.
(a) MI'S's.
Wages of MTS production workers and other IS
personnel amounted to 3 billion rubles in 1950 (see 1, a, (1), p. 32,
above). In addition, wages of workers involved in current repair of
* Account 7 follows on p. 39.
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Soviet National Accounts, 1950: Appropriation Account
of the Agricultural Enterprise Sector
Debit Credit
Payments to Household Sector
Wages in state agriculture 14.5
MTS's 4.6
State farms 9.9
Collective farm wage pay-
ments 10.7
Cash labor-day payments
to collective farmers 9.9
Administrative wages 0.4
Wages of hired noncon-
struction labor 0.4
Collective farm transfer
payments 0.6
Farm household income from
sale of farm products 45.9
Rural households 41.5
Urban households 4.4
Farm household income-in-
kind 205.5
277.2 Income originated 290.2
Transfer receipts 1.0
Payments to Government Sector 4.2
Direct taxes 2.6
Profits taxes of state
farms
Income taxes of collec-
tive farms
2.6
Social insurance 0.6
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Account 7
Soviet National Accounts, 1950: Appropriation Account
of the Agricultural Enterprise Sector
(Continued)
Billion Rubles
MTS's
State farms
Insurance premiums 1.0
Saving
State farms 0,3
Collective farms 7.9
9.8
Undistributed profits 7.2
Investment-in-kind 0.7
Net change in livestock
inventory 1.6
291.2 Total
291.2
tractors and agricultural machinery are estimated to have amounted to at
least half of the estimated current repair expenditures of 1.6 billion
rubles (see 1, a, (1), p. 32, above), and wages of capital repair workers
are estimated at 60 percent of the estimated capital repair expenditures
of 1.6 billion rubles, or 1.0 billion rubles (see 1, f, (3), (c), p. 37,
above). Therefore, total wage payments in MTS's in 1950 are estimated
at 4.8 billion rubles.
This total wage outlay of 4.8 billion rubles is'
thought, however, to contain social insurance charges, in view of the
practice of including social insurance under the wage category in the
five-item accounting system used by MrS's for planning and reporting
purposes. 5 Therefore, social insurance charges have been deducted.
As these charges amount to 4+.4 percent of the wage bill in state agri-
culture, 262 the figure of 4.8 billion rubles represents 104.4 percent
of the estimated wage bill, which then becomes 4.6 billion rubles.
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(b) State Farms.
The average annual wage for state farm workers, in-
cluding administrative as well as production workers, was estimated at
4,100 rubles per worker on the basis of wage data available for the
Ukrainian Ministry of State Farms. The total wage bill is estimated
below at 9.9 billion rubles.
In 1955 the average monthly wage for all categories
of workers in the Ukrainian Ministry of State Farms was 422 rubles per
worker. 57 In state farms of the Ministry of State Farms in the Kher-
sonskaya Oblast of the Ukraine the average monthly wage per worker in
1955 was 445 rubles, slightly above the average for the Ukraine as a
whole, and in 1950 was 361 rubles, 58 or about 80 percent of the 1955
average wage.
It was assumed that a similar relationship held for
wages of the Ministry of State Farms of the Ukraine as a whole. Thus
the average monthly wage for state farms of the Ukrainian Ministry of
State Farms for 1950 was estimated at about 340 rubles, 80 percent of
the 1955 average monthly wage of 422 rubles. The average annual wage,
therefore, amounted to about 4,100 rubles per worker.
Hence an average annual wage of 4,100 rubles per
worker was applied to the total number of workers and employees in
state farms, 2,425,000, _71 to obtain an estimated basic wage bill of
9.9 billion rubles.
(2) Collective Farm Wage Payments.
(a) Cash Labor-Day Payments to Collective Farmers.
In Appendix B, section 1, it is estimated that
these payments amounted to about 29 percent of collective farm money
revenues, or approximately 9.9 billion rubles.
(b) Administrative Wages.
In Appendix B, section 1, total "administrative-
economic" expenditures of collective farms are estimated at 0.5 billion
rubles. On the assumption that wages form the largest component of
these expenditures, it is estimated-that 0.4 billion rubles were devoted
to administrative wages. In addition, some small portion of cash labor-
day payments goes to administrative personnel who are members of farms. LO/
Positive evidence as to the importance of these administrative wages,
however, is lacking, and, therefore, no attempt at an estimate is made.
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(c) Wages of Hired Nonconstruction Labor.
(See Appendix B, section 1.)
(3) Collective Farm Transfer Payments.
This entry represents cash payments to sick and aged
collective farmers from the social-cultural funds of the collective
farms. In Appendix B, section 1, the total allocation to these funds
from collective farm revenues is estimated at 0.6 billion rubles. Of
this amount, it is assumed that the entire amount was devoted to pensions
and other cash transfer payments.
(4) Farm Household Income from Sale of Farm Products.
(a) Rural Households.
In Appendix B, section 2, sales by rural farm
households on the collective farm ex-village market* are estimated at
38.9 billion rubles, and sales to state procurement organizations are
estimated at 1.6 billion rubles. In addition, sales of livestock by
collective farmers to collective farms are estimated at 2.4 billion
rubles. From these total sales of' 42.9 billion rubles are deducted
expenses of 1.4 billion rubles, consisting of the following: collective
farm market and other fees, 0.5 billion rubles, and purchases of ma-
terials from the Nonagricultural Enterprise Sector, 0.9 billion rubles.
The fee expenses are estimated by attributing 0.5 billion rubles (of
the 0.6 billion rubles charged to farm households) to rural farm house-
holds, which carry on most of the private plot activity (see 1, b,
p. 34, above). The materials purchase estimate is derived by allocating
to the rural households three-fourths of total farm household materials
purchases of 1.2 billion rubles (see 1, a, (4), p. 34, above).
(b) Urban Households.
Collective farm ex-village market sales by owners
of urban plots are estimated at 4.3 billion rubles in Appendix B, sec-
tion 2. In addition, it is estimated. that sales to state procurement
organizations from urban plots amounted to 0.5 billion rubles. From
* The term collective farm market trade refers to sales by farm pro-
ducers of their produce at free prices. The term collective farm ex-
village market trade refers to sales by faxm producers to nonfarm con-
sumers, including nonfarm population and organizations. This turnover
at free prices was formerly referred to as collective farm bazaar trade.
The term collective farm village trade refers to sales by farm producers
to other farm producers, or farm population.
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total sales of 4.8 billion rubles are deducted expenses of 0.4 billion
rubles: collective farm market and other fees, 0.1 billion rubles, and
materials purchases, 0.3 billion rubles. The fee figure is the differ-
ence between total estimated fees paid by farm households, 0.6 billion
rubles (see 1, b, p. 34, above), and payments by rural households, 0.5
billion rubles. The materials purchase figure is one-fourth of total
farm household materials purchases of 1.2 billion rubles (see 1, a, (4),
P- 34, above).
(5) Farm Household Income-in-Kind.
(See Appendix B, section 4.)
b. Payments to the Government Sector.
(1) Direct Taxes.
(a) Profits Taxes of State Farms.
Because of lack of evidence as to the existence
of such taxes in 1950, it is assumed that there were no profits taxes on
state farms' revenues.
(b) Income Taxes of Collective Farms.
(See D, 2, g, p. 58, below.)
(2) Social Insurance.
(a) MTS.
(See a, (1), (a), p. 38, above.)
(b) State Farms.
This entry is calculated by applying the 4.4-
percent social insurance charge in state agriculture (see a, (1), (a),
p. 38, above), to the basic state farm wage bill of 9.9 billion rubles
(see a, (1), (b), p. 41, above).
(3) Insurance Premiums.
Insurance premiums are estimated at 1.0 billion
rubles (see D, 2, b, (4), p. 56, below).
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c. Saving.
(1) State Farms.
This entry represents profits devoted to decentral-
ized investment through the director's fund and other enterprise funds.
For state farms of the USSR Ministry of State Farms, profits amounted to
0.3 billion rubles in 1950, of which a negligible amount was allocated.
to the director's fund and 0.2 billion rubles were allocated to the fund
for developing the farms. 61 In view of the estimated 1950 state farm
subsidy (see Appendix B, section 3), it is quite apparent that state
farms as a whole were operating on a deficit. Hence, for this entry,
decentralized investments from retained receipts by the remainder of
the state farms are estimated at no more than half that of state farms
of the USSR Ministry of State Farms. Total decentralized investments
from own funds thus totaled about 0.3 billion rubles.
(2) Collective Farms.
(a) Undistributed Profits.
The undistributed profits of collective farms
are estimated at 7.2 billion rubles and consist of the following com-
ponents: deductions for replenishment of indivisible funds, 5.8 bil-
lion rubles (see Appendix B. section 1); funds earmarked for repayments
on long-term loans, 0.7 billion rubles (see Appendix B, section 1);
additions to inventories, 0.4 billion rub:Les (see 1, a, (3), P. 33,
above); and the value of labor services rendered on capital repair
projects by collective' farmers, 0.3 billion rubles (see Appendix C,
section 2).
(b) Investment-in-Kind.
(See 1, f, (3), (a), 13. 37, above.)
(3) Net Changes in Livestock Inventory.
The changes in livestock numbers in all categories
of farms from 1949 to 1950 62 were expressed in terms of live weight
of animals and were valued at 1950 state purchase prices. / These
values were then summed to obtain the total value of net changes in
livestock inventory for 1950.
d. Income Originated.
Income:or.iginated of 290.2 billion rubles is estimated as
the sum of all payments made from income originating in the productive
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activity of the Agricultural Enterprise Sector. It includes transfer pay-
ments to collective farmers from the social-cultural fund (see a, (3),
p. 42, above) because they are made out of income generated by the produc-
tive activity of the collective farms, even though they are disbursed on a
transfer basis rather than as a compensation of services currently rendered.
e. Transfer Receipts.
Receipts of insurance indemnities, for damage to col-
lective farm property, are assumed to be equal to insurance premiums
paid by collective farms (see D. 2, b, (4), p. 56, below).
3. Capital Account.
Account 8 records the asset formation of the sector and the
sources from which it is financed.
Soviet National Accounts, 1950: Capital Account
of the Agricultural Enterprise Sector
Gross capital formation
Capital repairs 4.3
MC'S' s 1.6
State farms 1.2
Collective farms 1.5
28.3 Saving 9.8
Capital consumption
allowance 1.4
Capital transfers from
Government Sector 16.7
Net borrowing from
Government Sector 2.6
State agriculture 13.1
Collective farms 5.9
Farm households 0
30.5 Total X0.5
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a. Gross Capital Formation.
(1) Capital Repairs.
(a) MCS's.
In 1950, total MrS expenditures for repair of
tractors and agricultural machinery amounted to 3.2 billion rubles (see
1, a, (1), p. 32, above). It was assumed that capital repairs repre-
sented half of this amount, or 1.6 billion rubles.
(b) State Farms.
State farms are required to spend on capital
repairs a sum: equal to 6.0 percent of the original value of existing
fixed assets. 64 For' lack of confirming data, state farm capital re-
pairs are assumed to have been expended. at 6.0 percent of 20 billion
rubles, the value of fixed assets in 1950, 6/ or 1.2 billion rubles.
(c,) Collective Farms.
(See Appendix C, section 2.)
(2) New Fixed Investment.
(a.) State Agr::iculture.
`.Phis entry of 13.1 billion rubles is the sum
of investments from the state budget in. MrS's, state farms, and general
agricultural projects, 12.6 billion rubles 66/; estimated decentralized
investment from retained receipts of all state farms, 0.3 billion ru-
bles (see 2, c), (1), p. +4, above); and. decentralized investment of 0.2
billion rubles from state farms' amortization allowance. The latter
figure is derived by deducting capital repairs of 1.2 billion rubles
(see (1), (b), above) from state farms' total amortization allowance
of 1.4 billion rubles (see 1, c, p. 35, above).
(b) Collective Farms.
'phis entry is the sum of investment from in-
divisible funds, 3.5 billion rubles; investments financed by long-term
credits, 1.7 billion rubles; and ::investment-in-kind, 0.7 billion ru-
bles.
Outlays from indivisible funds in 1950 were 3.5
billion rubles (see Appendix C, section 1). Long-term loans to col-
lective farms for investments amounted to 1.7 billion rubles. 67
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Collective farms' investment-in-kind has been
estimated at 0.7 billion rubles (see 1, f, (3), (a), p. 37, above).
(c) Farm Households.
This entry is considered to be zero. Net
changes in livestock inventories are treated in (3), below.
(3) Additions to Inventories.
This entry of 5.0 billion rubies represents in-
creases in stock of fuel, fertilizers, and other materials, and also
net changes in livestock inventories for all categories of farms. It
is the sum of additions to stock of state farms, 2.1 billion rubles;
of collective farms, 0.7 billion rubles; of MTS's, 0.6 billion rubles;
and net additions in livestock inventories of 1.6 billion rubles.
Additions by farm households are considered negligible.
The state farm figure is the sum of budget grants
for expansion of working capital and the estimated increase in inven-
tories financed by bank credit. Total additions to working capital in
1950 amounted to 6.7 billion rubles, of which additions to working
capital in agriculture are assumed, as was the case in 1955, to have
been about 29 percent of total additions, or about 1.9 billion rubles
(see D, 3, a, p. 61, below). The entire amount is assumed to have been
allocated to state farms. In addition, it is assumed that state farms
received 0.2 billion rubles of the 0.5-billion-ruble increase in short-
term credit to agriculture (see f, p. 48, below).
In the absence of specific data, collective farm
additions to inventories are estimated roughly on the basis of the
state farm figure. It is believed that collective farms' additions to
inventories were only a modest fraction, perhaps one-third, of the state
farm total. Therefore 0.7 billion rubles were assumed for collective
farms, of which 0.3 billion rubles are assumed to have come from bank
credit (see f, below) and o.4 billion rubles from collective farms'
revenues (see 1, a, (3), p. 33, above). MPS additions to inventories
are estimated at 0.6 billion rubles (see 1, a, (1), p. 32, above).
Net changes in livestock inventories are estimated at 1.6 billion ru-
bles (see 2, c, (3), p. 44, above).
This entry is the sum of the increase in monetary
assets, such as cash, bank deposits, and receivables of the Agricul-
tural Enterprise Sector, and long-term credits to collective farms for
the purchase of livestock.
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The increase in monetary assets amounted to 1.1 billion
rubles, the difference' between 5.8 billion rubles, the total deduction
for replenishment of the collective farm indivisible fund, and 4.7 bil-
lion rubles, expenditures from the indivisible fund for investments and
capital repairs (see Appendix C, sections 1 and 2).
Long-term loans to collective farms for the purchase of
livestock amounted to 1.1 billion rubles. L8/
c. Saving.
(See 2, c, p. 44, above-)
d. Capital Consumption Allowances.
(See 1, c, p. 35, above.)
e. Capital Transfers from Government Sector.
(See D, 3, a, (2), p. 61, below.)
f. Net Borrowing from Government Sector.
This entry is the sum of net long-term borrowing by
collective farms, 2.1 billion rubles, and net short-term borrowing
by collective farms and state farms, 0.5 billion rubles (see D, 3,
b, p. 62, below). It is assumed that, of the short-term total, col-
lective farms received 0.3 billion rubles and state farms 0.2 bil-
lion rubles.
Government Sector.
The Government Sector comprises national and local government
agencies engaged in providing services which are organized for, but
not sold to, the community. These services are primarily health and
education, defense, and internal security. This sector also includes
organizations and activities which carry out the economic at.d social
policies of the government. In this group are public organizations,
such as trade unions and the Communist :Party, and the banking system.
1. Production Account.
Account 9* shows the cost, in terms of wages, social in-
surance charges, and materials purchases, of providing government
services. Because these services are not sold, they are valued at
cost on the credit side.
* Account 9 follows on p. 49.
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Account 9
Soviet National Accounts, 1950: Production Account
of the Government Sector
Billion Rubles
Wages of government Cost of government
employees 95.4 services 220.0
Civilian employees
68.8
Health and education
48.0
General administration
8.9
Internal security
4.6
Public organizations
3.6
Military personnel
3.7
Military pay
26.6
Social insurance
Purchases from Nonagricultural
Enterprise Sector
Health and education
25.3
General administration
4.1
Military subsistence
31.0
Military procurement and
operations
26.3
Internal security
4.5
Defense programs
17.6.
Research and development
programs
3.0
Public organizations
3.5
Miscellaneous
6.5
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a. Wages of Government Employees.
(1) Civilian Employees.
(a) Health and Education.
Health and. education wages are estimated at
48.0 billion rubles: education wages of 33.2 billion rubles and
health wages of 14.8 billion rubles. 69/
(b) General Administration.
In general.., wages account for two-thirds of
the administration bill, 70 which in 1950 was equal to 13.9 billion
rubles. 71/ Wages were therefore 9.3 billion rubles; this, however,
includes social insurance payments of 5 percent of the wage bill (see
b, p. 51, below). The wage bill then is estimated at 8.9 billion ru-
bles and social insurance charges at 0.4 billion rubles.
(c) Internal Security.
The total MVD-MGB expenditure in 1950 is
assumed to be equal to the plan figure of 21.0 billion rubles. 72/
Expenditures on militarized MVD-MGB activity are estimated below at
11.9 billion rubles. This leaves 9.1 b=illion rubles for nonmilitarized
activity, half of which, 4.6 billion rubles, is'assumed to consist of
wages.
(d) Public. Organizations.
Wages are assumed to constitute one-half of
total expenditures of public organizations, such as trade unions, the
Communist Party, DOSAAF, and the like. Total expenditures are 7.1 bil-
lion rubles -- the sumof trade union expenditures of 3.3 billion rubles,
Communist Party expenditures of 2.8 billion rubles, and expenditures of
other organizations of 1.0 billion rubles. Wages are assumed equal to
half of total expenditures, or 3.6 billion rubles.
Trade union expenditures in 1950 are estimated
at 3.3 billion rubles on the basis of the following information. The
1950 trade union budget was 165 percent of the 1946 level 73/; expendi-
tures in 1946 may be estimated at 2.0 billion rubles, since expendi-
tures on aid to needy Members in that year were planned at 200.2 million
rubles, or 9.9 percent of total expenditures. 74/ Expenditures in 1950
were therefore 165 percent of 2.0 billion, or 3.3 billion rubles.
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It has been announced that revenue from dues
payments consisted of 85 percent of total revenues of the Communist
Party in 1952 75/ -- that is, before the lower dues rates announced
at the Nineteenth Party Congress were put into effect. It seems reason-
able to assume that the same percentage was true for 1950, when the
dues rates were the same. Total dues payments are estimated above at
2.4 billion rubles (see A. 2, d, p. 13, above). Total revenue in 1950
can thus be computed at 2.8 billion rubles, and total expenditures are
assumed equal to total revenue.
Expenditures of other public organizations, in-
cluding Komsomol, DOSAAF, and Spartak, are assumed equal to 1.0 billion
rubles.
(e) Military Personnel.
Wages of civilian employees included in the
defense budget are estimated at 3.7 billion rubles. 76/
(2) Military Pay.
Military pay is estimated at 26.6 billion rubles,
the sum of 20.5 billion rubles of armed forces military pay and 6.1 bil-
lion rubles for militarized forces of the MVD-MGB.
The social insurance rate for government civilian em-
ployees is estimated at 5 percent of the corresponding wage bills, on
the basis of information for education and health. The rate is 4.3
percent in middle schools, 4.6 percent in mass education institutions,
and 5.9 percent in health institutions. 78/ Social insurance payments
are thus 5 percent of health and education wages, 48.0 billion rubles,
and administration wages, 8.9 billion rubles -- or about 2.8 billion
rubles.
c. Purchases from the Nonagricultural Enterprise Sector.
(1) Health and Education.
Health and education purchases are estimated by
computing total adjusted expenditures in this field and deducting ex-
penditures for wages, social insurance, and investment. Adjusted
health expenditures are 26.2 billion rubles, the explicit sum of
health expenditures of 21.4 billion rubles 79 plus 2.8 billion rubles
of social insurance funds and 2.0 billion rubles of social security
funds (see 2, b, (1), p. 53, below). Adjusted education expenditures
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are explicit education expenditures of 56.9 billion rubles 80/ less
student stipends of 4.0 billion rubles (see 2, b, (2), p. 55, below).
Total adjusted expenditures are 79.1 billion rubles; from this is sub-
tracted wage payments of 48.0 billion rubles (see a, (1), p. 50, above),
social insurance outlays of 2.4 billion rubles (see b, p. 51, above),
investment outlays of 2.0 billion rubles, and capital repair outlays
of 1.4 billion rubles (see 3, c, (1) and (2), pp. 63 and 64, respec-
tively, below). This leaves 25.3 billion rubles for materials purchases.
(2) General Administration.
Materials purchases for general administration are
equal to total expenditures of 13.9 bill=ion rubles less expenditures
for wages and social insurance of 9.3 billion rubles (see a, (1), (b),
p. 50, above) and investment in government facilities of 0.5 billion
rubles (see 3, c, (2), p. 64, below). This leaves 4.1 billion rubles
for materials purchases.
(3) Military Subsistence?
This item consists of purchases for subsistence
of the armed forces proper of 25.2 billion rubles and for militarized
MGB-MVD troops of 5.8'billion rubles. 81/ In the referenced source
the subsistence allowances are in. 1951 prices and are 23.0 billion
rubles and 5.3 billion rubles, respectively. These amounts have been
adjusted to current 1950 prices by use of the state retail price in-
dex. L2/
(4) Military Procurement and Operations.
This figure has been computed as the residual of
the defense budget after other itemized expenditures have been de-
ducted (see Appendix A).
(5) Internal Security.
Out of total MVD-MGB expenditures on nonmilita-
rized activity, 9.1 billion rubles; it was assumed that half represents
materials purchases (see a, (1), (c), p. 50, above).
(6) Defense Programs.
In this category have been placed the unexplained
budget residuals under the budget headings Financing the National
Economy and Other Expenditures. It would include purchases for nuclear
energy and other defense-oriented programs which are not included in
the explicit defense budget (see Appendix A).
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(7) Research and Development Programs.
Several types of developmental outlays are financed
through the budget. These outlays include expenditures for mastering
the production of new products, outlays for technical improvements and
inventions, and starting expenditures of new enterprises. 83 These
expenditures have been estimated at 3 billion rubles, on the basis of
an estimate of 5 billion rubles for 1955.
(8) Public Organizations.
Materials purchases were estimated at 3.5 billion
rubles, or one-half of total expenditures of public organizations,
estimated at 7.1 billion rubles (see a, (1), (d), p. 50, above).
(9) Miscellaneous.
One-half of the unexplained budget residual of 13.1
billion rubles (see footnote c, Table 10, p. 54, below) was considered
purchases for current use by the government from the Nonagricultural
Enterprise Sector.
d. Cost of Government Services.
Government services are valued at cost, as they are
not sold to the community. This item is therefore the sum of all
entries on the debit side of the account.
2. Appropriation Account.
Account 10* shows on the credit side the receipts of the
Government Sector and on the debit side their disposition through the
purchase of government services, transfer payments to households and
enterprises, and saving.
a. Cost of Government Services.
(See 1, d, above.)
b. Transfers to the Household Sector.
(1) Pensions.
Pensions payments to the population are equal to
35.5 billion rubles: the sum of 14.4 billion rubles in social in-
surance funds, 14.9 billion rubles in social security funds, 3.6 billion
* Account 10 follows on p. 54.
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rubles in aid to mothers, and 2.6 billion rubles from defense budget
funds.
Soviet National Accounts, 1950: Appropriation Account
of the Government Sector
Billion Rubles
Cost of government services
220.0
Receipts from own
Transfers to Household
sector
4.5
Sector
42.8
Receipts from other
sectors
369.2
Pensions
Stipends
35.5
4,0
Household taxes
Interest
Insurance indemnities
Transfers to Nonagricul-
2.8
0.5
and payments
Taxes on enter-
prises
43.4
tural Enterprise Sector'
16.9
Profits taxes
38.3
Income taxes
4.7
Grants to procurement
Subsidies
6.0
10.9
Turnover taxes
Other enter-
prise taxes
236.1
Transfers to Agricultural
and payments
22.0
Enterprise Sector
14.7
Subsidies
MTS grant
8.2
5.5
Social insurance
Dues and other
payments to pub-
16.8
Insurance indemnities
1.0
lic organizations
6.4
Saving
Insurance premiums
1.5
373.7
373.7
According to the 1950 plan, total social insurance
expenditures were set at 19.0 billion rubles. Out of this total, 15.3
billion rubles, or 80.5 percent of the funds, were earmarked for pensions
and grants; 3.0 billion rubles, or 15.8 percent, for homes of rest and
sanatoria; and the remaining 0.7 billion rubles, or 3.7 percent, were to
be devoted to administrative expenses. 85f Total social insurance ex-
penditures in 1950 were equal to 17.9 billion rubles. 86 If it is
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assumed that actual expenditures were distributed in the same propor-
tion as planned expenditures, pensions amounted to 14.4 billion rubles,
homes of rest and sanatoria to 2.8 billion rubles, and administrative
expenses to 0.7 billion rubles. For the purpose of these accounts,
pension payments are included here as Transfers to the Household Sector;
expenditures for homes of rest and sanatoria are considered properly
health expenditures and are included in adjusted health expenditures
above (see 1, c, (1), p. 51, above); and expenditures for administra-
tion are considered transfer of funds to trade unions, which are re-
sponsible for the administration of social insurance funds (see g, (4),
P. 59, below).
Out of total expenditures for social security of
16.9 billion rubles, 87 it has been assumed that 2 billion rubles
were devoted to expenditures properly classified as health expenditures,
such as maintenance of homes for invalids. The remaining 14.9 billion
rubles are taken as pension payments to the population.
Budget expenditures for aid to mothers were announced
as 3.6 billion rubles in 1950. 88/ Pension payments out of the defense
budget, which consist of payments to career members of the armed forces,
are estimated at 2.6 billion rubles. L9/
(2) Stipends.
Stipends to students in higher educational establish-
ments amounted to 2.2 billion rubles in 1950. 90 On this basis, it is
assumed that the total amount of student stipends in 1950, including
stipends to students in technicums and scientific institutes, was equal
to 4.0 billion rubles. This is consistent with an estimate of 3.0 bil-
lion rubles for stipends in 1948 91 and a plan figure of 5.8 billion
rubles for student stipends in 1953. 92 The estimate of 4 billion
rubles for 1950 is also consistent with trends in student enrollment
in technicums and higher educational establishments. 93
(3) Interest.
The Soviet population receives interest from pur-
chase of government bonds and from deposits in savings banks. Payments
on the state loan to the population were 5.1 billion rubles in 1950 /;
this amount includes principal retirement as well as interest. By
examining the various bond issues on which loan service was paid in
1950 and reconstructing the schedule of loan service payments, interest
has been estimated at 2.3 billion rubles.
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The average rate of interest for savings deposits
in 1950 was 3 percent.95 As additions to savings deposits in 1950
were equal to 3.1 billion rubles (see 3, f, (2), p. 65, below) and
total deposits at the end of the year were 18.5 billion rubles, 96
the average amount of savings deposits during the year was 17.0 bil-
lion rubles. Applying the average rate of interest of 3 percent gives
total interest payments of 0.5 billion rubles.
(4+) Insurance Indemnities.
In;the absence of any specific information con-
cerning insurance payments and premiums in 1950, it has been assumed
first that premiums were equal to indemnities and, second, that total
premiums were equal to 11.5 billion rubles on the basis of a 2.0-
billion-ruble plan figure. for 1956. It was further assumed that
households receive 0.5 billion rubles and collective farms 1.0 billion
rubles.
c. Transfers to the Nonagricultural Enterprise Sector.
(1) Grants to Procurement.
The 1950 budget allocation to trade and procure-
ment was 10.1 billion rubles, 98J of which the allocation to trade may
be estimated at 1.8 billion rubles on the basis of the 1951 plan fig-
ure. 99 Of the 8.3 billion rubles allocated to procurement, it is
estimated that 6.0 billion rubles represent budget grants to .cover
operating losses.
These losses occur because procurement organiza-
tions buy agricultural products from producers at various prices but
sell at a single price.' These organizations, however, pay into the
budget turnover taxes computed as the difference between low compulsory
delivery prices paid to collective farms and the single selling price
received from the processing industries with an allowance for opera-
tional costs of the procurement organization. But, in actual practice,
procurement organizations often pay to producers higher prices for
above-quota collective farm deliveries and higher prices for state
farm deliveries. In order to make up the difference between the low
compulsory delivery collective farm prices, upon which turnover tax is
computed and the higher purchase price actually paid by the procurement
organization in many cases, allocations are made from the budget.
(2) Subsidies.
Subsidies are computed here as 19.1 billion rubles,
the difference between total profit of state enterprises of 65.5 bil-
lion rubles 100 and net profit of state enterprises of 46.-- billion
rubles.
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Net profits of state and cooperative organizations
in 1950, taking into account losses, were 52.2 billion rubles. 101
From this figure are subtracted profit of producer cooperatives of 3.9
billion rubles 102 and profit of consumer cooperatives of 1.9 billion
rubles, 103 leaving 46.4 billion rubles in net profit of state enter-
prises alone.
From total subsidies of 19.1 billion rubles, sub-
sidies to the Agricultural Enterprise Sector of 8.2 billion rubles have
been deducted (see d, (1), below) to obtain the figure of 10.9 billion
rubles as subsidies to the Nonagricultural Enterprise Sector.
d. Transfers to the Agricultural Enterprise Sector.
(1) Subsidies.
This item consists of subsidies to agricultural
enterprises of 8.2 billion rubles (see Appendix B, section 3).
(2) MTS Grant.
The total budget grant to the MTS's, including
capital investment, was equal to 17.5 billion rubles. 104 Capital
investment for the MTS's is estimated at 6.2 billion rubles (see
Appendix C), capital repair at 1.6 billion rubles (see C, 3, a, (1),
(a), p. 46, above), and increases in MTS working capital at 0.6 bil-
lion rubles. This leaves 9.1 billion rubles of the budget grant to
be devoted to current operations, from which are deducted 3.6 billion
rubles of MTS payment into the budget 105 to obtain the subsidy fig-
ure of 5.5 billion rubles.
(3) Insurance Indemnities.
Insurance indemnities to collective farms were
assumed to be equal to half of total insurance indemnities of 1.0 bil-
lion rubles (see b, (4), p. 56, above).
e. Saving.
Government saving is equal to total receipts of
373.7 billion rubles less cost of government services of 220.0 bil-
lion rubles and transfer payments of 74.4 billion rubles.
f. Receipts from Own Sector.
Receipts from own sector are equal to 4.5 billion ru-
bles, the sum of social insurance payments made by the government on
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the wages of its civilian personnel of 2.8 billion rubles (see 1, b,
p. 51, above) and the balance in republic and local budgets of 1.7 bil-
lion rubles, which is considered budget revenue (see Appendix A). The
figure of 1.7 billion rubles is the plan amount, 106 but there is no
reason to suppose that the actual amount was any different from the
plan, since these are funds left over from 1949.
g. Receipts from Other Sectors.
(1) House Taxes and Payments.
"Taxes on the population" in 1950 were 35.8 billion
rubles. 107 In addition., it is estimated that households pay 3.3 bil-
lion rubles of the total 6.7 billion rubles in local taxes and fees, 108
3.3 billion rubles of the, total collections and nontax revenue, 109 and
miscellaneous payments of' 1.0 billion rubles (see Appendix A). Total
taxes on households thus are equal to 43.4 billion rubles. These pay-
ments include, in addition to income taxes and entertainment taxes, taxes
on the ownership of houses and automobiles, land rent, passport and
notarial fees, and tuition payments.
(2) Taxes on Enterprises.
(a) Profits Taxes.
Total deductions from profits to the budget in
1950 were 40.4 billion ;rubles. 110/ This item includes 2.1 billion
rubles of return of surplus working capital, which is considered a
capital transfer (see 3, g, p. 65, below).
(b) Income Taxes.
Budget receipts from income taxes and taxes
on nonmerchandising operations levied on enterprises and organizations
amounted to 5.5 billion:rubles in 1950. 111 It may be assumed that
0.8 billion rubles of this amount consisted of the tax on nonmerchan-
dising operations, as total collections of this tax over the 5-year
period 1946-50 amounted to 3.8 billion rubles. 112
Income taxes levied on producer and consumer
cooperatives are estimated at 2.:L billion rubles on the following basis.
For consumer cooperatives, income taxes are 25 percent of profits, 113
which in 1950 were equal to 1.9 billion rubles (see c, (2), p. 56,
above). Income tax payments were therefore 0.5 billion rubles. For
producer cooperatives, income taxes vary from 20 to 50 percent of profit
depending on the rate of profitability. 114/ On the basis of informa-
tion on 1954 and 1955 profits and income taxes, it appears that 40 percent
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of profit is the general average. 115 As producer cooperatives'
profit in 1950 was equal to 3.9 billion rubles (see c, (2), p. 56,
above), income taxes are estimated at 1.6 billion rubles.
As income taxes on consumer and producer co-
operatives account for 2.1 billion rubles out of total taxes of 4.7
billion rubles, the remaining 2.6 billion rubles in income taxes must
have been paid by collective farms.
(c) Turnover Taxes.
Budget receipts from turnover taxes in 1950
amounted to 236.1 billion rubles. 116
(d) Other Enterprise Taxes and Payments.
This item is equal to 22.0 billion rubles, con-
sisting of 3.4 billion rubles in local taxes and fees, 10.1 billion
rubles of collections and nontax revenue, 5.0 billion rubles of customs
and reparations, 2.2 billion rubles of miscellaneous taxes, 0.8 billion
rubles in taxes on nonmerchandising operations (see Appendix A), and
payments to the banking system by producer cooperatives of 0.5 billion
rubles (see B, 2, b) (3), p. 27, above).,
(3) Social Insurance.
Total budget income from this source was 19.6 bil-
lion rubles. 117 From this amount is deducted 2.8 billion rubles, the
portion paid by the government for its civilian employees (see 1, b,
p. 51, above), leaving 16.8 billion rubles in payments by the Nonagri-
cultural and Agricultural Enterprise Sectors.
(4) Dues and Other Payments to Public Organizations.
(See A, 2, d, p. 13, above.)
(5) Insurance Premiums.
(See b, (4), p. 56, above.)
3. Capital Account.
Account 11* records the various capital transactions of
the Government Sector. As debits it lists the capital outlays of the
sector, in the form of its capital grants (transfers), loans, and own
* Account 11 follows on p. 60.
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real and monetary asset formation.
funds for these outlays.
Soviet National Accounts, 1.950: Capital Account
of the Government Sector
Capital transfers to
other sectors
Nonagricultural
Enterprise Sector 85.7
Agricultural
Enterprise Sector 16.7
Net loans to other
sectors
Household Sector 1.0
Nonagricultural
Enterprise Sector 1 8.9
Agricultural
Enterprise Sector 2.6
Government capital
formation
Capital repairs 1.9
New fixed
investment 6.5
Other 7.0
Additions to cash
balances
Saving
102.4 Capital transfers from
Household Sector
12.5 Capital transfers from
Nonagricultural Enter-
prise Sector
Capital transfers from
abroad (reparations)
15.4
s credits it shows the sources of
Net purchase of
government bonds 25.6
Additions to
savings deposits 3.1
28.7
130.9
130.9
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a. Capital Transfers to Other Sectors.
(1) Nonagricultural Enterprise Sector.
Capital transfers to the Nonagricultural Enterprise
Sector are 85.7 billion rubles, the sum of transfers for new fixed in-
vestment, 80.9 billion rubles, and transfers for the expansion of work-
ing capital, 4.8 billion rubles.
Government transfers to the Nonagricultural Enter-
prise Sector for new fixed investment are computed by estimating total
government budgetary funds devoted to investment and subtracting that
portion of the funds transferred to the Agricultural Enterprise Sector
or invested by the Government Sector directly.
Total governmental budget outlays for investment
are estimated at 100.0 billion rubles (see Appendix C. section 2).
From this amount is deducted 12.'6 billion rubles devoted to agricul-
tural investment (see (2), below) and 6.5 billion rubles devoted
to government investment (see c, (2), p. 63, below), to obtain the
figure of 80.9 billion rubles of investment funds transferred from the
budget to the Nonagricultural Enterprise Sector. (It should be noted
that investment figures for 1950 include funds for investment planning
bureaus; these funds have not been included in investment figures for
subsequent years. The sum involved may be estimated at 3.5 billion
rubles in 1950, in view of the fact that these funds were planned at
3.7 billion rubles in the 1951 budget. 118 )
Transfers to the Nonagricultural Enterprise Sector
for the expansion of working capital are estimated at 4.8 billion ru-
bles. Here it has been assumed that actual transfer of funds for in-
creases in working capital was equal to the planned transfer of funds
of 6.7 billion rubles 119 and that, of the total sum, 71 percent, or
4.8 billion rubles, was directed to the Nonagricultural Enterprise
Sector and the remaining 1.9 billion rubles to the Agricultural Enter-
prise Sector. This was the relationship which existed in 1955; however,
the share given to the Agricultural Enterprise Sector is probably too
great for 1950. 120
Transfers to the Nonagricultural Enterprise Sector
for capital repair are assumed to be negligible.
(2) Agricultural Enterprise Sector.
Capital transfers to the Agricultural Enterprise
Sector are the sum of transfers for new fixed investment of 12.6 bil-
lion rubles, transfers for capital repairs of 1.6 billion rubles,
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transfers for increases in state farm working capital of 1.9 billion
rubles (see (1), p. 61, above), and MTS working capital of 0.6 billion
rubles (see C, 1, a, (1), p. 32, above), for a total of 16.7 billion
rubles.
b. Net Loans to Other Sectors.
Net loans to other sectors are estimated at 12.5 bil-
lion rubles, the sum of short-term credit of 9.0 billion rubles plus
long-term credit of 3.5 billion rubles.
Increase in short-term credit, which is equal to in-
crease in Gosbank credit outstanding, is estimated at 9.0 billion ru-
bles on the basis of the following information. It is known that
Gosbank credit outstanding on 1 January 1955 amounted to 190 billion
rubles 121 and that credits in 1955 were 23 percent greater than in
1950. 122 Therefore,' credit outstanding on 1 January 1950 is estimated
at 154 billion rubles. Credit outstanding on 1 January 1951 was 163
billion rubles, 123 which signifies 9--billion-ruble increase above
1950. Agriculture may be assumed to account for approximately 5 per-
cent of the total, as this was the case in 1941 11L4/ and 1955. 125
Therefore, 0.5 billion rubles of short-term credit are classified as a
transfer of credit tothe Agricultural Enterprise Sector, and the re-
maining 8.5 billion rubles as a. transfer to the Nonagricultural, Enter-
prise Sector.
Long-term credit, which was issued by the so-called
specialized banks -- the Agricultural, Industrial, Trade, and Communal
Banks -- has been estimated at 3.5 billion rubles. Although specific
information is lacking in most cases concerning the specific amount
of loans, it is possible to determine the general range of magnitude.
The plan budget allocation to specialized banks in 1950 was set at
3.9 billion rubles. 126 In addition to budget grants, banks also
lend money from funds' deposited by producer cooperatives and collec-
tive farms. Funds deposited by producer cooperatives have been esti-
mated above at 0.5 billion rubles (see., 2, g, (2), (d), p. 59, above).
Therefore, expansion of credit in 1950 must have approximated 3.5 bil-
lion rubles. In addition, it is known that total long-term credit out-
standing at the end of 1.955 was 40 billion rubles, an increase of more
than 15 billion rubles compared with the end of 1950. 127 This im-
plies an average increase of about 3 billion rubles per year.
Long-term credit extended to collective farms by the
Agricultural Bank was'2.8 billion rubles in 1950. 128 If it is
assumed that 25 percent of total loans were covered by repayment of
previous loans, net long-term loans to the Agricultural Enterprise
Sector may be estimated at 2.1 billion rubles.
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Total state loans for private urban home construction,
granted by the Communal Bank, amounted to 0.7 billion rubles in 1950,
and loans for rural private housing construction, granted by the Agri-
cultural Bank, amounted to an additional 0.7 billion rubles. 129/ If
25 percent repayment is similarly assumed here, net loans equal 1.0 bil-
lion rubles and are entered in the accounts as net loans to the House-
hold Sector.
Long-term loans to the Nonagricultural Enterprise Sector
are computed as the residual -- that is, they are equal to the total
expansion of loans of 3.5 billion rubles less loans to the Agricultural
Enterprise Sector of 2.1 billion rubles and loans to the Household Sec-
tor of 1.0 billion rubles. The resulting figure of 0.4 billion rubles
in net loans to the Nonagricultural Enterprise Sector seems reasonable,
as it is known that these loans are relatively small. Total loans
granted by the Industrial Bank during the period 19+1-53 amounted to
"more than 1 billion rubles." 130 Total credit extended by the Trade
Bank, according to a 1955 statement, amounts to "about" 2 billion rubles
annually. 131
Net loans to other sectors may thus be summarized as
Short-Term Loans
Long-Term Loans
Total
Household Sector
1.0
1.0
Nonagricultural Enterprise
Sector
8.5
0.4
8.9
Agricultural Enterprise
Sector
0.5
2.1
2.6
Total
9.0
3.5
12.5
c. Government Capital Formation.
(1) Capital Repairs.
Government expenditures for capital repairs are
equal to 1.9 billion rubles, consisting of 1.4 billion rubles expended
for repair of health and education facilities and 0.5 billion rubles
expended for repair of defense establishments.
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(2) New Fixed Investment.
Government expenditures for new fixed investment
total 6.5 billion rubles and are made up of 2.0 billion rubles of
investment by the Ministries of Health and Education, 4.0 billion ru-
bles of investment by the Ministry of Defense from the Defense Budget,
and 0.5 billion rubles for investment in administrative sector. The
latter would presumably include investment in defense programs such as
nuclear energy and weapons production.
(3) Otter. -
i
This category includes additions to gold stocks,
state reserve purchases, and minor investment expenditures such as out-
lays for geological surveys. These expenditures were estimated at 7.0
billion rubles, or about half the estimate of 15 billion rubles for
1955. As was the case in the 1955 accounts, the figure entered here
is made up of the net increase in gold stocks and state reserves, al-
though actual Soviet budgetary practice would list gross purchases and
sales. The complete lack of information, however, makes a more detailed
estimate impossible. 132
d. Additions to Cash Balances.
This entry is equal to the total budget surplus in
1950 less that portion of the surplus devoted to offsetting the expan-
sion of State Bank short-term credit. The budget surplus for 1950 was
equal to total income of 422.8 billion rubles less total outlays of
413.2 billion rubles, or 9.6 billion rubles (see Appendix A). Of this
surplus, 9 billion rubles were devoted to the expansion of State Bank
credit (see b, p. 62, above), leaving 0.6 billion rubles as increase in
cash balances.
e. Saving.
(See 2,,e, p. 57, above.)
f. Capital Transfers from the Household Sector.
(1) Net; Purchase of Government Bonds.
The; gross purchase of government bonds by the
population, consisting of subscriptions to the mass loan of 26.4 bil-
lion rubles 133 and purchase of 3?-percent lottery loans of 1.5 bil-
lion rubles, 13 was equal to 2'7.9 billion rubles. From this amount
is deducted repayment of loans to the population of 2.3 billion rubles,
which is the difference'between total loan service to the population of
5.1 billion rubles and that part of loan service consisting of interest
payments (see Appendix A).
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(2) Additions to Savings Deposits.
Additions to savings deposits are equal to the
purchase of government bonds by savings banks, given as 3.1 billion
rubles. 135 This figure is somewhat short of the planned increase
to 4 billion rubles. 136
Capital Transfers from the Nonagricultural Enterprise
Sector.
This item, which consists of the return of surplus work-
ing capital to the budget, has been estimated at 2.1 billion rubles.
These funds are included in the budget revenue item of profits tax. The
1950 estimate l is based on the assumption that return of surplus
working capital bears the same relation to total profits taxes as it
did in the 19+9 plan. 138
h. Reparations.
Reparations in these accounts appear only once -- on
the credit side of the government. It is implicitly assumed that this
is the capital transfer from the rest of the world account and thus
would be entered on the debit side of such an account if it were in-
cluded in this report.
Thus, by accepting this lone transfer from the rest of
the world account, it is implicitly assumed that other foreign trans-
actions (transfers, sales, and purchases) net out to zero.
Reparations payments are estimated to have totaled
20.8 billion rubles. Budget revenue from customs and reparations was
planned at 25.8 billion rubles. 139 In the absence of any informa-
tion on the subject, it is assumed that the plan was fulfilled and
that 5.0 billion rubles of the total consisted of customs duties and
other fees paid by enterprises and the remaining 20.8 billion rubles of
reparations from foreign nations.
E. Consolidated National Accounts.
1. Production Account.
Account 12* (the Consolidated Production Account) contains
the sum of the corresponding entries in the sector production accounts.
Account 12 follows on p. 66.
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In order to show gross
however, subsidies are
plicitly deducted from
Account.
national product (GNP) at established prices,
eliminated from the credit side and are ex-
the debit side of the Consolidated Production
Soviet National Accounts, 1950: Production Account
of the Consolidated National Accounts
National income
782.4
Capital consumption
allowances
29.0
Indirect taxes
257.5
Less: Subsidies
-30.6
Statistical discrepancy
4,3.5
Gross national product
at established prices 1,081..8
a. National Income.
Consumers' expenditure on
goods and services
672.4
Government current ex-
penditure on goods and
services
220.0
Gross capital formation
189.4
Gross national expendi-
ture at established
prices
1,081.8
Consolidated national income is the sum of national in-
come originating in the Nonagricultural Enterprise Sector, 363.0 billion
rubles (see B, 1, d, p. 21, above); in the Agricultural Enterprise Sec-
tor, 290.2 billion rubles (see C, 2, d, p. 44, above); and in the
Government Sector, 129.2 billion rubles. National income originating
in the Government Sector is the sum of wages of government employees,
95.4 billion rubles (see D, 1, a, p. 50, above); social insurance pay-
ments, 2.8 billion rubles (see D, 1, b, p. 51, above); and military
subsistence, 31.0 billion. rubles (see D, 1, c, p. 51, above).
b. Capital Consumption Allowances.
This entry is the sum of allowances in the Nonagricul-
tural Enterprise Sector, 27.6 billion rubles (see B, 1, c, p. 21, above),
and in the Agricultural Enterprise Sector, 1.4 billion rubles (see C,
1, c, p. 35, above).
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c. Indirect Taxes.
This entry is the sum of indirect taxes paid by the
Nonagricultural Enterprise Sector, 255.4 billion rubles (see B, 1,
b, p. 20, above), and the Agricultural Enterprise Sector, 2.1 bil-
lion rubles (see C, 1) b, p. 34, above).
d. Subsidies.
Total subsidies are the sum of subsidies to the Non-
agricultural Enterprise Sector, 16.9 billion rubles (see B, 1) g,
p. 22, above), and to the Agricultural Enterprise Sector, 13.7 billion
rubles (C, 1, g, p. 38, above).
e. Statistical Discrepancy.
This entry is the difference between total debits and
total credits, or 43.5 billion rubles.
f. Consumers' Expenditure on Goods and Services.
This entry is the sum of purchases by the Household
Sector (including income-in-kind) from the Nonagricultural Enterprise
Sector, 386.1 billion rubles; from the Agricultural Enterprise Sector,
255.3 billion rubles; and from the Government Sector (in the form of
military subsistence), 31.0 billion rubles (see A. 2, b, p. 7, above).
g. Government Current Expenditure on Goods and Services.
This entry of 220.2 billion rubles is the cost of govern-
ment services (see D, 1, d, p. 53, above).
h. Gross Capital Formation.
This entry is the sum of gross capital formation in the
Household Sector (new fixed investment), 6.2 billion rubles (see A, 3,
a, p. 16, above); in the Nonagricultural Enterprise Sector, 139.5 bil-
lion rubles (see B, 3, a, p. 28, above); in the Agricultural Enterprise
Sector, 28.3 billion rubles (see C, 3, a, p. 46, above); and in the
Government Sector, 15.4 billion rubles (see D, 3, c, p. 63, above).
2. Appropriation Account.
Account 13,* the Consolidated Appropriation Account, is
compiled by combining the entries in the sector appropriation accounts
according to the type of payments made, rather than according to in-
tersectoral transactions.
* Account 13 follows on p. 68.
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Account .13
Soviet National Accounts, 1950: Appropriation Account
of the Consolidated National Accounts
Wages and other cash National income 782.4
household income +16.5
Income-in-kind 263.4
Social insurance 19.6
Direct taxes and related
payments of enterprises 43.6
Saving of enterprises 39.3
National income at National income at
factor cost 782.44 factor cost 782.4
a. Wages and Other. Cash Household Income.
This entry is the sum of wages and other cash house-
hold income originating in the Nonagricultural Enterprise Sector,
249.4 billion rubles (see B, 2, a, (1) through (4), pp. 22 through 25,
above); in the Agricultural Enterprise Sector ,j 71.7 billion rubles
(see C, 2, a, (1) through (4) pp. 38 through 42, above); and in the
Government Sector, 95.4 billion rubles (see D, 1) a, p. 50, above).
b. Income-in-Kind.
This entry is the sum of income-in-kind originating
in the Nonagricultural Enterprise Sector, 26.9 billion rubles (see B,
2, a, (5) through (7) p. 25, above); in the Agricultural Enterprise
Sector, 205.5 billion rubles (see C. 2;, a, (5), p. 43, above); and in
the Government Sector (military subsistence), 31.0 billion rubles (see
D, 1, c, P. 51, above).
c. Social Insurance.
This entry is the sum of social insurance payments by
the Nonagricultural Enterprise Sector, 16.2 billion rubles (see B, 2,
b, p. 26, above); by the Agricultural Enterprise Sector, 0.6 billion
rubles (see C, 2, b, p. 43, above); and by the Government Sector, 2.8
billion rubles (see D,: 1, b, p. 51, above).
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d. Direct Taxes and Related Payments of Enterprises.
This entry is the sum of all direct taxes and of pay-
ments to the banking system by cooperatives in the Nonagricultural
Enterprise Sector, 41.0 billion rubles (see B, 2, b, p. 26, above) and
of direct taxes of the Agricultural Enterprise Sector, 2.6 billion ru-
bles (see C, 2, b, p. 43, above).
e. Saving of Enterprises.
Enterprise saving was 29.5 billion rubles in the Non-
agricultural Sector (see B, 2, c, p. 27, above) and 9.8 billion rubles
in the Agricultural Enterprise Sector (see C, 2, c, p. 44, above).
3. Capital Account.
Account 14 (the Consolidated Capital Account) is obtained
by combining the sector capital accounts, with one adjustment. Saving
devoted to the formation of purely monetary assets is deducted from
both sides of the account, in order to obtain real capital formation
and saving.
Account 14
Soviet National Accounts, 1950: Capital Account
of the Consolidated National Accounts
Gross capital formation
,189.4
Capital repairs
27.5
New fixed investment
134.1
Additions to in-
ventories
20.8
Other
7.0
Statistical discrepancy
3.9
Gross capital forma-
tion
193.3
Capital consumption
allowances
29.0
Saving
154.3
Less: Addition to
monetary assets
10.8
Capital transfers
from abroad
(reparations)
20.8
Gross real
saving 193.3
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a. Gross. Capital Formation.
(1) Capital Repairs.
Total capital repairs are the sum of capital re-
pairs in the Nonagricultural Enterprise Sector, 21.3 billion rubles
(see B, 3, a, p. 28, above); in the Agricultural Enterprise Sector,
4.3 billion rubles (see C, 3, a, p. 46, above); and in the Government
Sector, 1.9 billion rubles (see I), 3, c, p. 63, above).
(2) New Fixed Investment.
Total new fixed investment is the sum of invest-
ment in the Household Sector, 6.2 billion rubles (see A, 3, a, p. 60,
above); in the Nonagricultural Enterprise Sector, 102.4 billion rubles
(see B. 3, a, p. 28, above); in the Agricultural Enterprise Sector,
19.0 billion rubles (see C. 3, a, p. 46, above); and in the Government
Sector, 6.5 billion rubles (see D. 3, c, p. 63, above).
(3) Additions to Inventories.
Additions to inventories were 15.8 billion rubles
in the Nonagricultural Enterprise Sector (see B, 3, a, p. 28, above)
and 5.0 billion rubles in the Agricultural Enterprise Sector (see C,
3, a, p. 46, above).
(4) Other.
Other investment in the Government Sector was 7.0
billion rubles (see D, 3, c, p. 63, above).
b. Statistical Discrepancy.
This item is the difference between total credits of
193.3 billion rubles and debits of 189.4 billion rubles.
c. Capital Consumption Allowances.
This entry is the sum of allowances in the Nonagricul-
tural Enterprise Sector, 27.6 billion rubles (see B, 3, f, p. 30,
above), and in the Agricultural. Enterprise Sector, 1.4 billion rubles
(see C. 3, d, p. 48, above).
d. Saving.
Total saving is the sum of saving in the Household Sec-
tor, 35.7 billion rubles (see A, 3, d, p. 19, above); in the Nonagricul-
tural Enterprise Sector, 29.5 billion rubles (see B, 3, e, p. 30, above);
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in the Agricultural Enterprise Sector, 9.8 billion rubles (see C, 3, c,
p. 48, above); and in the Government Sector, 79.3 billion rubles (see D,
3, c, p. 63, above).
e. Addition to Monetary Assets.
Saving devoted to the formation of cash balances, enter-
prise bank deposits, and receivables was 1.8 billion rubles in the
Household Sector (see A, 3, c, p. 18, above); 6.2 billion rubles in the
Nonagricultural Enterprise Sector (see B, 3, c, p. 30, above); 0.6 bil-
lion rubles in the Government Sector (see D. 3, d, p. 64, above); and
2.2 billion rubles in the Agricultural Sector (see C. 3, b, p. 4+7, above).
f. Capital Transfers from Abroad (Reparations).
(See D, 3, h, p. 65, above.)
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III. Gross National Product by End Use.
The composition of Soviet output is revealed by the distribution
of gross national product (GNP) into end-use categories of consumption,
investment, defense, and administration. In A, below, GNP at estab-
lished prices, as calculated in the Consolidated Production Account
(see II, E, 1, p. 65, above), is distributed by end use. In B, below,
the end-use distribution of GNP is adjusted to a factor-cost basis in
order to reflect more closely the allocation of resources among end
uses.
A. GNP at Established Prices.
GNP at established prices is classified into end-use categories
by regrouping the expenditures in the Consolidated Production Account
(see II, E, 1, p. 65, above). Government current expenditure on goods
and services is distributed according to purpose, and military capital
formation is transferred from Gross Capital Formation into Defense.
The components of each end-use category are shown in Table 1* and
are discussed below.
1. Consumption.
a. Consumers' expenditures on goods and services are taken
from the Consolidated Production Account (see II, E, 1, p. 65, above).
b. Communal expenditure on goods and services for consump-
tion is composed of government current expenditure on health and educa-
tion plus total expenditures of public organization (excluding the
Communist Party).
The sum of 79.9 billion rubles is composed of the
following: wages of health and education workers, 48.0 billion rubles;
wages of workers and employees of public organizations, 2.2 billion
rubles (3.6 billion rubles in II, D, 1, a, (1), (d), p. 50, above,
minus 1.4 billion rubles paid to Communist Party workers whose wages
are classified as administrative); social insurance payments made by
these workers and employees, 2.3 billion rubles (total of 2.8 billion
rubles in II, D, 1, a, p. 50, above, minus 0.5 billion rubles paid to
other categories); 25.3 billion rubles expended on materials for health
and education (current expenditures excluding investment and capital
repairs); and 2.1 billion rubles for public organization expenditures
on materials (total of 3.5 billion rubles in II, D, 1, c, p. 51, above,
minus 1.4 billion rubles spent by the Communist Party on current pur-
chases of materials).
* Table 1 follows on p. 74.
S -E -C -R-E -T
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 Approved For Release 1999/09/27 : CIA-RDP79SO1046A000600110006-8
Distribution of Soviet Gross National Product
at Established Prices, by End Use
=1950
Billion Rubles
1.
Consumption
752.3
a.
Consumers' expenditure on goods and services
672.4
b.
Communal expenditure on goods and services
79.9
184.6
a.
Gross capital formation
189.4
b.
Less: Military capital formation
7.8
c.
Research and development programs
3.0
3.
Defense
113.0
a.
Military procurement and operations 26.3
b.
Government current
programs
purchases for defense
17.6
c.
Military personnel
-- civilian pay
3.7
d.
Military pay
26.6
e.
Military subsistence 31.0
f.
Military capital formation 7.8
4.
Administration
31.9
a.
General administration
13.4
b.
Internal security
9.1
c.
Communist Party
2.9
d.
Other
6.5
1,081.8
2. Investment
From gross capital formation (from II, E, 1, p. 65, above)
of 189.4 billion rubles is deducted the sum of military capital repairs,
0.5 billion rubles, and military fixed investment, 7.3 billion rubles
?74
S-E-C-R-E-T
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 Approved For Release 1999/09/27 : CIA-RDP79SO1046A000600110006-8
S-E-C-R-E-T
(see II, D, 3, c, p. 63, above, and Appendix C, section 1, below), or
a total of 181.6 billion rubles. To this amount is added 3.0 billion
rubles for research and development programs.
3. Defense.
Total defense end use of 113.0 billion rubles comes from
the following components: 17.6 billion rubles for the defense program;
26.3 billion rubles from military procurement and operations; 3.7 bil-
lion rubles as pay for civilians employed by military organizations;
26.6 billion rubles of military pay; 31.0 billion rubles of military
subsistence; and 7.8 billion rubles of military capital formation, of
which 0.5 billion rubles are for capital repair and 7.3 billion rubles
are for new fixed investment.
The total of defense expenditures derived in this report
represents total explicit expenditures for defense as reported in the
budget plus an estimate of militarized internal security expenditures
and residuals of expenditures from both the budget category Financing
the National Economy and the officially unitemized portion of the bud-
get. The total of these expenditures, 113.0 billion rubles, may be
compared with an alternative figure derived by pricing, in some detail,
estimates of Soviet military purchases and activities during 1950.
This latter figure, 148.0 billion rubles, however, is not strictly
comparable with the estimate derived for national income purposes. 140
Included in the larger total but not in the defense estimate for this
report are military pensions, payments to reserve members while on
reserve duty by economic enterprises, and an estimate of military re-
search and developmental expenditures charged to economic enterprises
and the social-cultural sector of the economy.
Military pensions are treated in this report as transfer
payments from the government to households, and the payments to re-
serve members while on reserve duty by economic enterprises have been
included in the calculation of the economic enterprise wage bill. The
financing of military research and development performed by the educa-
tional system is already included in the social-cultural. vote of the
budget and appears in the national accounts as communal consumption.
In addition, it is quite probable that a portion of the government
purchase of research and development from economic enterprises repre-
sents military-oriented activity.
- 75 -
S-E-C-R-E-T
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 Approved For Release 1999/09/27 : CIA-RDP79SO1046A000600110006-8
The two estimates of defense expenditures may be adjusted
conceptually in the following manner:
National Income Estimate
148.0
Total 113.0 Total
plus: less:
a. Military-oriented :re- a. Military pensions 2.6
search and development b. Payments to re-
performed by economic servists by economic
and social-cultural enterprises 2.5
enterprises 3.0
142.9
The resulting difference of 26.9 billion rubles cannot possibly be covered.
by assuming that all remaining undefined budgetary expenditures can be
considered to be implicit defense outlays. The difference, however,
might be explained substantially by the uncertainties surrounding these
two estimates.
4. Administration.
a. General administration expenditures of 13.4 billion ru-
bles are the sum of wages of 8.9 billion rubles, social insurance pay-
ments of 0.4 billion rubles, and material purchases of 4.1 billion
rubles (see II, D, 1, p. 48, above).
b. Internal- security expenditures of 9.1 billion rubles
are the sum of wages of 4.6 billion rubles and material purchases of
4.5 billion rubles.
c. Communist Party expenditures are the sum of wages, 1.4
billion rubles; social insurance payments, 0.1 billion rubles; and
materials purchased, 1.4 billion rubles, making a total of 2.9 billion
rubles.
d. Miscellaneous budget expenditures come from II, D, 1,
c, (9), p. 53, above, :a total of 6.5 billion rubles, and it is assumed
here that these purchases were for general administrative purposes
rather than for consumption, investment, or defense.
... 76 -
S -E -C -R -E T
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 Approved For Release 1999/09/27 : CIA-RDP79SO1046A000600110006-8
S -E -C -R -E -T
On the basis of this end-use distribution, appropriate ruble-
dollar ratios may be applied to convert Soviet GNP at established prices
from rubles into dollars. Ratios in source 141 indicate that 1950
Soviet GNP of,1,081.8 billion 1950 rubles was equivalent to about 87
billion 1950 US dollars.
B. GNP at Adjusted Factor Cost.
The breakdown of GNP at adjusted factor cost by end use is ob-
tained by distributing indirect taxes, subsidies, and the statistical
discrepancy among the four end uses and deducting them from (or, when
appropriate, adding them to) the end-use totals at established prices.
Table 2* shows the interrelation of GNP and national income
magnitudes for'total product.
The adjustments are shown in Table 3.** In this table, turn-
over taxes are distributed by end use by identifying final product
expenditures subject to turnover tax (column B), and, in the absence
of information on tax rates on individual commodities or groups, by
applying the average effective rate of taxation.
Both explicit turnover taxes actually collected and imputed
turnover taxes included in the portion of farm household income-in-
kind priced at state retail prices (which include turnover tax) must
be deducted. The average effective rate of turnover taxation is de-
termined by dividing explicit turnover tax collections by total ex-
plicit final product expenditures subject to the tax. The resulting
rate of 57.83 percent in 1950 is applied to -these expenditures in
order to deduct the appropriate amount of turnover tax from each end
use (column D).
Then other enterprise taxes are distributed by end use (col-
umn E) on the assumption that they were passed along by enterprises
equally in each ruble of explicit final product sales. The necessary
distribution by end use of explicit final product sales of the Non-
agricultural Enterprise Sector -- used to distribute total other enter-
prise taxes because other enterprise taxes of the Agricultural Enter-
prise Sector are negligible -- is calculated in Table 4.***
Table 5**** shows 2 of the 3 magnitudes shown in Table 2 --
GNP at established prices and GNP at adjusted factor cost -- distri-
buted by end use.t
Table
2 follows on p.
78.
Table
3 follows on p.
79.
Table
4 follows on p.
82.
Table
5 follows on p.
83.
t
Text
continued on p.
85.
- 77 -
S -E -C -R -E -T
Approved For Release 1999/09/27 : CIA-RDP79SO1046A000600110006-8
 Approved For Release 1999/09/27 : CIA-RDP79SO1046A000600110006-8
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IV. National Income by Sector of Origin.
Distribution of national income by sector of origin shows the struc-
ture of the economy by measuring the contribution of each of its sectors
to total national income. In this part of the report the Soviet economy
has been divided into the following sectors of origin: industry, con-
struction, agriculture, transport, communications, domestic trade, govern-
ment services, and other services. In A, below, national income at factor
cost, calculated at 782.4 billion rubles in the Consolidated Appropriation
Account (see II, E, 2, p. 67, above), is distributed by sector of origin
and by type of factor payment. In B, p. 96, below, national income is
adjusted to remove imputed turnover taxes included in the figure for farm
household income-in-kind. The result shows the distribution by sector
of origin of net national product or national income at adjusted factor
cost, calculated at 684.2 billion rubles in Table 2.*
A. National Income at Factor Cost.
In Table 6,** national income at factor cost is distributed by
sector of origin and by type of factor payment. The total of 782.4 billion
rubles is from the Consolidated Appropriation Account. National income
was derived independently for each sector of origin, with the exception of
the Other Services category. This category consists of income originated
in personal services, housing, and miscellaneous services, such as foreign
trade. It was not possible to estimate the wage and profit components of
outlays for services and housing, and consequently they have been included
with the statistical discrepancy as a residual in the last row of the table.
Income originated in each sector is divided into four components:
wages and other cash household income, income-in-kind, social insurance,
and profits. Because land and capital (with minor exceptions) belong to
the state, these factors of production are not compensated with explicit
factor payments recorded in money flows, aside from minor exceptions, such
as rent of state housing and interest on bank deposits. Although the
"profit motive" does not determine decisions to organize new enterprises
and undertake new activities in the USSR, as it does in Western free enter-
prise economies, profits as reported in Soviet money flows do constitute
a factor payment. The Soviet profit concept has elements of rent and in-
terest because profits are calculated in relation to cost of production --
which in turn is related to the amount of fixed and working capital in-
vested in the enterprise -- and are set at an average level or within a
"normal" range, implying a notion of average rate of return.
The derivation of each figure in Table 6 is discussed below..
* P. 78, above.
** Table 6 follows on p. 86.
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1. Industry.
a. Wages and Other Cash Household Income.
Total wages and social insurance payments in industry
are estimated at 146 billion rubles for 1950 and 220 billion rubles for
1955 on the basis of a study of costs in Soviet industry. The
total cost of production (sebestoimost') in Soviet industry in 1950 was
estimated at 485 billion rubles, and for 1955 at 781 billion rubles.
This estimate was based primarily on a large number of statements in
Soviet sources regarding possible savings from reductions in sebestoimost'.
For example, Kaganovich reported in 1954 that a reduction of 1 percent in
sebestoimost' in state industry would result in a saving of 5 billion
rubles 1 7; another source stated that in 1955 a 1-percent reduction in
sebestoimost' would result in a saving of nearly 7 billion rubles. 148
On the basis of a Soviet analysis of costs, 149/ pay-
ments for labor are taken in 1950 to be equal to 27 percent of total
sebestoimost' of 485 billion rubles, or 131 billion rubles, and for 1955
to be equal to 25 percent of total sebestoimost', or 195 billion rubles.
This figure includes wages, social insurance charges, other payments
(such as bonus and premium compensation to workers), and an allowance
for the cost of loading, storing, and again loading finished products.
In addition to this, an allowance of 1 percent of total sebestoimost' is
added in both years to cover labor costs involved in loading, storing,
and unloading incoming materials in factories. The resulting totals of
136 billion rubles for 1950? and 203 billion rubles for 1955 represent the
labor cost bill for industry at the plant level. A further addition,
however, of 2 percent of the estimated gross value of output in 1950 and
1955 is made to allow for wages paid by sales and supply organs of indus-
trial ministries, higher administrative organs, and research and design
organizations. This brings the total labor bill in industry, including
social insurance, to 146 billion rubles in 1950. To derive the social in-
surance payments for 1950, it is necessary to use the relationship exist-
ing in 1955 between social insurance payments and the industrial wage
bill. In other sectors (Government and Cooperatives) the ad valorem prin-
ciple of social insurance payments appears to be valid; therefore, lacking
more current rates, the average deduction for 1955 is used. In 1955,
social insurance payments amounted to 7.2 percent of the total industrial
wage bill. 150
Therefore, by assuming the same rate, the total labor
cost of 146.0 billion rubles in 1950 is 107.2 percent of the wage bill.
The wage bill comes to 136.2 billion rubles, leaving 9.8 billion rubles
for social insurance.
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b. Income-in-Kind.
None.
c. Social Insurance.
See a, p. 87, above.
d. Profits.
Profits in 1950 (including subsidies not covered by
ministerial redistribution) were 35.3 billion rubles. 1 1
2. Construction.
a. Wages and Other Cash Household Income.
Wages are estimated to total 32.9 billion rubles, of
which wages of workers: engaged in new state construction are estimated
to be 26.0 billion rubles; wages of workers engaged in state capital
repair, 5.9 billion rubles; and. wages paid to outside workers engaged
in kolkhoz construction and repair, 1.0 billion rubles.
The wages of workers engaged in new state construction
are based on the following method. In 1950, 4+6 percent of total expendi-
tures for construction-installation work for centralized investment con-
sisted of wages and social insurance payments. 152/ From this are deducted
3 percent for social insurance and 5 percent for wage payments of workers
engaged in subsidiary production of construction materials. 153/ This
leaves a balance of 38 percent of the total state construction-installation
bill for wages -- 38 percent of 68.4 billion rubles, or 26.0 billion ru-
bles, in wages.
To derive the wage bill of 5.9 billion rubles for capital
repair, it is assumed that the share of wages in total state capital re-
pair is the same as for new construction, or 22.8 percent. The 22.8 per-
cent is the result of assuming that 60 percent of total investment costs
were made up of charges for construction-installation and that-therefore
38 percent (portion of wages) of 60`percent gives labor costs as 22.8 per-
cent of total investment costs. The 22.8 percent applied to the total
capital repair bill of 26 billion rubles (see Appendix C, section 2) gives
a wage bill-of 5.9 billion rubles.
The 1-billion-ruble wage bill for outside workers engaged
in kolkhoz construction and repair is estimated by assuming that 70 percent
of total kolkhoz investment (exclusive of livestock increases) is made up
of construction-installation work. Seventy percent of total kolkhoz invest-
ment (ne, and capital repair) of 7.4 billion rubles comes to 5.2 billion
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rubles. Of this total, 40 percent, or 2.1 billion rubles, is estimated
to be wages. Of the 2.1 billion rubles, 1.1 billion rubles are assumed
to be wages for outside labor and 1 billion rubles for labor-in-kind.
b. Income-in-Kind.
Income-in-kind is the result of labor furnished by in-
divi4uals in building their own houses, valued at 3.8 billion rubles
(see II, B, 2, a, (6), p. 25, above).
c. Social Insurance.
Social insurance payments came to 3 percent 154 of total
state construction-installation expenditures. 155 The same relationship
is assumed for capital repairs. Therefore, total social insurance comes
to 2.6 billion rubles -- that is, 3 percent of 68.4 billion rubles, or 2.1
billion rubles, plus 3 percent of 15.6 billion rubles, or 0.5 billion rubles.
d. Profits.
Construction activity was subsidized in 1950; therefore,
profits are assumed to be zero.
3. Agriculture.
a. Wages and Other Cash Household Income.
Total cash household income originated in the Agricultural
Enterprise Sector is estimated at 71.7 billion rubles, the difference be-
tween total payments of agricultural enterprises to the Household Sector
of 277.2 billion rubles and income-in-kind, 205.5 billion rubles (see II,
C, 2, a, p. 38, above).
From this must be taken some allowance for income foregone
by farmers who participate in market activity. The allowance of 2 billion
rubles estimated in the 1955 accounts will tentatively be used in
these accounts. Therefore, wages and other household income total 69.7 bil-
lion rubles, and the 2 billion rubles of difference is classified as income
originating in trade.
b. Income-in-Kind.
The item of 205.5 billion rubles is discussed in Appendix
B, section.4.
c. Social Insurance.
The item of 0.6 billion rubles is shown in II, C, 2, b,
(2), p. 43, above.
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d. Profits.
Profits are the sum of direct taxes of 2.6 billion
rubles and savings of 9.8 billion rubles (see II, C, 2, b, (1), and
c, pp. 43 and 44, respectively, above).
4. Transport.
a. Wages_ and Other Cash Household Income.
The wage bill of ::L6.7 billion rubles was estimated by
analyzing cost breakdowns by type of transport.. Wages in railroad
transport of 15.5 billion rubles; in maritime transport, 0.3 billion
rubles; in river transport, 0.5 billion. rubles; and in motor transport,
0.4 billion rubles, are calculated below. This method of estimation is
based on the calculation of the total cost of production (sebestoimost')
for the various types of transport and then on the application of given
percentages as to what: proportion of total costs is composed of wages.
Table 7* shows the computation of sebestoimost' by type
of transport for 1950.
(1) Wages in Railroad Transport.
In 1951, wages and social insurance charges were re-
ported to have been 45.9 percent of total sebestoimost'. 1 7 This pro-
portion was assumed to hold true for 1950. The planned proportion of
social insurance charges for 1952;, 158 7.5 percent of the wage bill, is
also assumed to have been the charge for :L950. Therefore, the total wage
and social insurance bill as a percentage of sebestoimost' of 45.9 bil-
lion rubles was assumed to be 107.5 percent of the wage bill alone. The
wage proportion would be 42.7 percent of the total sebestoimost', or
15.5 billion rubles, and social insurance charges of 7.5 percent of the
wage bill would come to 1.2 billion rubles.
(2) Wages in Maritime Transport.
Total expenditures for wages and social insurance
were 19.6 percent of sebestoimost' for 1953. 152/ This percentage was
accepted for 1950. Social insurance charges in a later reference are
given as 6.7 percent of sebestoimost'. 1601 Therefore, wages alone are
estimated to have comprised 18.3 percent of all costs, or, when applied
to data in Table 7, a wage bill of 0.3 billion rubles is indicated.
* Table 7 follows on p. 91.
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(3) Wages in River Transport.
The 1953 wage component of 23.9 percent 162 of
sebestoimost' is applied to the 1950 costs. This percentage for 1953
was applicable for only about 80 percent of river transport sebestoimost'
for that year but presnably reflects the total costs components. Wages
of 0.5 billion rubles are indicated.
(4) Wages in Motor. Transport.
A 1955 wage component of 14.9 kopeks per ton-kilometer
for "general use" motor freight gives a computed 29.3 percent of the total
sebestoimost'. 163 This percentage is taken to be the wage proportion of
total auto transport costs for 1950 -- that is, for both motor freight and
motor passenger transport. When applied to total sebestoimost', a wage
bill of 0.4 billion rubles is indicated.
b. Income-in-Kind.
transport.
Negligible amount indicated for crew's messes in maritime
c. Social Insurance.
Total social insurance charges are computed at 1.3 billion
rubles. Social insurance charges on railroad 'transport workers of 1.2 bil-
lion rubles were indicated above (see a, p. 90, above). The same rate,
7.5 percent, that held; for rail transport is used for motor transport, thus
indicating social insurance payments of 0.03 billion rubles. For river and
maritime transport, sources used above in determining proportion of sebes-
toimost' resulting from wage payments indicated a social insurance rate of
.7 percent of wage payments, or 0.05 billion rubles. A total of 1.28 bil-
lion rubles is rounded to 1.3 billion rubles.
d. Profits.
Total profits of 6.7 billion rubles are composed of 6.3
billion rubles in rail transport 164 and. 0.4 billion rubles in motor
transport. Profits from motor transport are estimated on the basis of
computed 1955 profits and an assumption that revenues per ton-kilometer
in 1950 were one-fourth greater than in 1.955
5. Communications.
a. Wages and Other Cash Household Income.
The total wage bill of 3.5 billion rubles is estimated
by multiplying an estimated average wage of 6,575 rubles per worker times
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the total number of workers and employees. The average wage of 6,575
rubles was derived from a study of fragmentary data concerning wages
in the industry. 165
The reported number of full-time communications workers
and employees for 1950 is 542,000. 166 Multiplying this figure by the
average wage results in the total wage bill of 3.5 billion rubles.
b. Income-in-Kind.
None.
c. Social Insurance.
The social insurance charges of 0.2 billion rubles
were obtained by applying the given rate of 6.1 percent 167 to the
wage bill of 3.5 billion rubles.
d. Profits.
Profits of 1.2 billion rubles are obtained by subtract-
ing total cost of 5.9 billion rubles from total revenues of 7.1 billion
rubles. Total costs in communications are computed on the basis that
the labor cost of 3.5 billion rubles comprised about 60 percent of the
total costs in communications. 168 Total revenues for 1950 of 7.1 bil-
lion rubles came from an official source. 169
6. Domestic Trade.
a. Wages and Other Cash Household Income.
Total wage costs of 17.7 billion rubles are the sum of
wages of five component parts: 7.6 billion rubles in retail trade,
1.3 billion rubles in wholesale trade, 3.3 billion rubles in public
feeding establishments, 3.5 billion rubles in administrative and service
costs, and 2.0 billion rubles for trade income originating in the Agri-
cultural Enterprise Sector (see 3, a, p. 89, above).
(1) Wages in Retail Trade.
In 1950, wages of retail trade personnel accounted
for 2.42 percent of the total volume of retail trade. 170 Costs data
covered only 309.5 billion rubles of a total volume of 312.2 billion
rubles, but the 2.42 percent was assumed to apply to the whole.
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(2) Wages in Wholesale Trade.
In 1950, total. costs in wholesale trade were 5.54 bil-
lion rubles, 171 and wages were 24.2 percent of the costs of wholesale
trade under the Ministry of Trade. 172 As most of wholesale trade is
now conducted by the Ministry of Trade, this percentage was applied to
the whole.
(3) Public Feeding Establishments.
In 1950, wage costs amounted to 6.94 percent of the
total volume of public feeding of 47.7 billion rubles. 173
(4) Administrative and Service.
Other wage costs of 3.5 bil.lion.rubles involve wages
of transport workers, guards, and administrative personnel.
(a) Transport Workers.
In 1950, transport workers' wages were an esti-
mated 40 percent of transport costs; transport costs in turn were (1)
16.7 percent 174 of total state trade costs of 12.8 billion rubles 1751
and (2) 21.8 percent of total cooperative trade costs of 8.4 billion
rubles. Therefore, transport workers' wages in 1950 were 40 percent of
3.9 billion rubles, or 1.6 billion rubles.
(b) Guards.
In 1950, guards' wages were an estimated. 18 per-
cent 176 of maintenance costs; maintenance costs in turn were (1) 19.7
percent of total state trade costs of 12.8 billion rubles 177 and
(2) 9.9 percent of total cooperative trade costs of 8.4 billion rubles.
Therefore, guards' wages were 18 percent; of 3.3 billion rubles, or 0.6
billion rubles.
) Administrative Personnel.
Administrative costs were estimated to consist
solely of wages for administrative personnel. In 1950, these costs
were (1) 6.0 percent 178 of total state trade costs of 12.8 billion
rubles and (2) 5.4 percent of total cooperative trade costs of 11.0 bil-
lion rubles. Therefore, administrative wages in 1950 were 1.3 billion
rubles.
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b. Income-in-Kind.
None.
c. Social Insurance.
Social insurance rates are 4.8 percent on state wages
and 4.1 percent on consumer cooperative wages. 179/ For this research
aid an average of 4.5 is used. Applied to the total relevant wage bill,
this mean gives a social insurance bill of 0.7 billion rubles.
This entry is the sum of profits of the Ministry of
Trade, 3.0 billion rubles; workers' supply organizations, 0.5 billion
rubles; and consumer cooperatives, 1.9 billion rubles. 180
7. Government Services.
a. Wages and Other Cash Household Income.
(See II, D, 1, a, p. 50, above.)
b. Income-in-Kind.
Item of 31.0 billion rubles for military subsistence
(see II, D, 1, c, p. 51, above).
c. Social Insurance.
(See II, D, 1, b, p. 51, above.)
d. Profits.
None.
8. Other Services and Statistical Discrepancy.
a. Wages and Other Cash Household Income.
This entry of 41.6 billion rubles is a residual equal to
the difference between the total and the sum of entries for the preceding
7 sectors. The total, 415.7 billion rubles, is equal to total cash house-
hold income of 416.5 billion rubles (see II, E, 2, a, p. 68, above) less
profits distributed to cooperative members, 0.8 billion rubles (see II,
B, 2, a, (2), p. 24, above).
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Income-in-kind in services consists of imputed rent of
8.8 billion rubles (see II, A, 2, b, (1), (d), p. 11, above) and forced
labor subsistence of 14.3 billion rubles (see II, B, 2, a, (7), p. 25,
above).
c. Social Insurance.
This entry is a residual equal to the difference between
total payments of 19.6 billion rubles (see II, D, 2, g, (3), P. 59,
above) and the sum of payments of the 7 preceding sectors.
This entry is the difference between total profits of
83.7 billion rubles and the profits of the other sectors, 61.0 billion
rubles. Total profitsa:re the sum of direct taxes and related payments,
43.6 billion rubles; saving of enterprises, 39.3 billion rubles (see I:I,
E, 2, e, p. 69, above);; and profits distributed to cooperative members,
0.8 billion rubles (see II, BY 2, a, (2), p. 24, above).
B. National Income at Adjusted Factor Cost.
In order to show national income and its sector distribution on
the same adjusted factor-cost basis as GNP, it is necessary to remove
imputed turnover taxes from national income at original factor cost.
These imputed turnover taxes are included in farm household income-in-
kind (205.5 billion rubles) because it was valued in part (35.9 billion
rubles) at collective farm market prices, which do not include -turnover
tax, and in part (169.6 billion rubles) at state retail prices, which
do include turnover tax (see Appendix B, section 4). In Table 3* the
average effective rate of the turnover tax was calculated at 57.83 per-
cent in 1950. At this rate, 98.1 billion rubles of the 169.6 billion
rubles priced at state retail prices constitute imputed turnover taxes.
This sum must be deducted from income originated in agriculture,
290.2 billion rubles (see Table 6**), to arrive at the adjusted factor
cost for agriculture.
The results of this adjustment, together with the statistical
discrepancy, present the distribution by sector of origin of national
income at adjusted factor cost, as shown in Table 8.
P. 79, above.
P. 86, above.
Table 8 follows on p. 97.
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Soviet National Income at Adjusted Factor Cost, by Sector of Origin a/
1950
Industry 181.3 26.5
Construction 39.3 5.7
Agriculture 192.1 28.1
Transport 24.7 3.6
Communications 4.9 0.7
Domestic trade 23.8 3.5
Government services
129.2
18.9
Other services and
statistical discrepancy
88.9 J
13.0
Total
684.2
100.0
a. National income at adjusted factor cost in this table differs from
national income at original factor cost in Table 6 (p. 86, above) by
the amount of imputed turnover taxes included in farm household in-
come-in-kind, 98.1 billion rubles. This sum has been deducted from
the agriculture and total figures in Table 6 to derive this table.
b. This figure differs from that in Table 6 because of statistical
discrepancy.
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SOVIET NATIONAL ACCOUNTS, 1950:
CLASSIFICATION OF BUDGET REVENUES AND EXPENDITURES
The purposes of this appendix are to show how Soviet budget revenues
and expenditures are classified in the national accounts and to derive
certain national accounts entries as budget residuals. In Tables 9*
and 10,x' respectively, the total amount of each budget revenue and ex-
penditure item is distributed among the corresponding entries in the
accounts of the Government Sector, where the sources and methodology
for most of these entries are discussed (see II, D, p. 48, above).
The remaining entries are derived here as residuals representing the
undistributed portions of the corresponding budget items.
* Table 9 follows on p. 100.
Table 10 follows on p. 101.
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APPENDIX B
SOVIET NATIONAL ACOUNTS, 1950: AGRICULTURAL INCOME AND OUTLAY
In this appendix the incomes and outlays of the principal agricul-
tural producers -- collective farms, state farms, and farm households --
are analyzed in detail, and various entries in the accounts of the
Agricultural Enterprise Sector (see II, C, p. 30, above) are estimated.
Collective farm expenditures are discussed in 1, below; farm household
sales, in 2, p. 109, below; state farm income and outlay, in 3, p. 112,
below; and farm households income-in-kind, in 4, p. 114, below.
1. Distribution of Outlays from Collective Farms' Money Income.
In Table 11* the distribution of outlays by collective farms
from their money income in 1950 is estimated. The individual entries,
which follow the system used in collective farm accounting, 182 vary
considerably in their precision and reliability as a result of differ-
ences in the amount and in the applicability of information available
for the different entries. As-no exact figures were available from
Soviet sources, all data are estimates based on indirect information.
a. Total Money Income.
(See source 183/.)
b. Money Outlay.
Total money income is estimated to have been distributed by
type of outlay as follows:
(1) Taxes, Collections, and Insurance Premiums.
(a) Income Taxes.
(See II, D, 2, b, p. 53, above.)
(b) Indirect Taxes.
Only a somewhat arbitrary guess is possible for
this category. Included are taxes on the sale of timber, fines for
underfulfilling the livestock plan, collective farm market fees, and
the like. In all, 1 billion rubles seems to be a reasonable estimate.
Table 11 follows on p. 106.
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Distribution of Outlays
from the Money Income of Soviet Collective Farms
1950
Billion Rubles
a. Total money income 3?E^2
b. Money outlay
(1) Taxes, collections, and insurance premiums )4.6
(a) Income taxes 2.6
(b) Indirect taxes 1.0
(c) Insurance! premiums 1.0
(2) Repayments of long-term loans 0.7
(3) Deductions to indivisible funds 5.8
(4) Deductions to! social-cultural funds 0.6
(5) Production expenditures 12.1
(a) Payment for work of MPS's
0.7
(b) Payment to hired non-
construction workers and
specialists
0.4
(c) Additionsto inventories
0.4
(d) Materials: for current operations
10.6
(6) Administrative-economic expenditures
0.5
(a) Wages of administrative-
management personnel
(b) Office supplies, travel
allowances, and the like
0.1
(7) Labor-day payments
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(c) Insurance Premiums.
Total payments of insurance premiums are estimated at
1.5 billion rubles, of which 1.0 billion rubles are estimated for agri-
cultural enterprises (see II, D, 2, g, p. 58, above).
(2) Repayments of Long-Term Loans.
Long-term credit extended to collective farms in 1950
amounted to 2.8 billion rubles, of which 1.7 billion rubles were allo-
cated for investment and 1.1 billion rubles were allocated for the
purchase of livestock. 184 It was arbitrarily assumed that one-fourth
of total loans was covered by repayment of previous loans, or that
repayment amounted to about 0.7 billion rubles.
(3) Deductions to Indivisible Funds.
By statute, deductions from collective farm money income
for replenishment of indivisible funds are to be from 15 to 20 percent
of collective farm money income. 185 In 1952 this deduction was 7.4
billion rubles, 186 or 17.3 percent of collective farm money income of
42.8 billion rubles, 18 and in 1956 the deduction amounted to 16.7
billion rubles, 188 or 17.7 percent of collective farm money income of
94.6 billion rubles. 18 Here it is assumed for 1950 that at least
17 percent of collective farm money income of 34.2 billion rubles, 1-9-01
or 5.8 billion rubles, were deducted for replenishment of indivisible
funds.
(4) Deductions to Social-Cultural Funds.
The Model Charter of the Agricultural Artel states that
these deductions shall not exceed 2 percent of collective farm money
income. 191/ In view of the traditional subordination of consumption-
oriented outlays to production-oriented outlays, it is assumed that
about 1.7 percent of money income was allocated to social-cultural
funds in 1950. It is further assumed that transfer payments to aged
and disabled members of the farms comprised the entire amount.
(5) Production Expenditures.
The total of 12.1 billion rubles is a residual equal
to the difference between total outlay, 34.2 billion rubles, and the
sum of the other 6 main entries, 22.1 billion rubles.
(a) Payment for Work of MTS's.
(See II, C, 1, f, p. 35, above.)
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(b) Payments to Hired Nonconstruction Workers and
Specialists.
In 1954, collective farms spent 1.9 billion rubles
for hired construction and capital repair labor, or 2.7 times the 1950
expenditure. 122/ Thus 1950 expenditures amounted to 0.7 billion rubles.
It is assumed that this expenditure represents the bulk of collective
farm, expenditures for all hired labor, as, in view of the large labor
supply resident on collective farms, it is unlikely that available funds
are used for hiring labor for current operations. No information is
available on the amount of payments to visiting hired specialists, such
as agronomists and veterinarians, or to seasonal harvest hands. In
order, however, to make some allowance for hired nonconstruction labor,
it is assumed that collective farms spent for this purpose an amount
equal to about one-half of their outlay for hired construction and
capital repair labor, or approximately 0.4 billion rubles.
(c) Additions to Inventories.
(See II, C, 3, a, p. 46. above.)
(d) Materials for Current Operations.
This is a residual representing the difference be-
tween total estimated production expenditures, 12.1 billion rubles, and
the sum of expenditures for money payments to Mi?S's, hired nonconstruc-.
tion labor, and additions to inventories, 1.5 billion rubles. It is
estimated (see II, C, 1, a, p. 32, above) that, of total materials pur-
chases for current operations of 10.6 billion rubles, 2.8 billion rubles
were purchased within the Agricultural Enterprise Sector and 7.8 billion
rubles were purchased from the Nonagricultural Enterprise Sector.
(6) Administrative-Economic Expenditures.
By statute this category of expenditure is not to exceed
2 percent of total collective farm money incomes. L-L93 Miss Nimitz of
the RAND Corporation points out in an unpublished paper that scattered
postwar evidence indicates that actual administrative expenditures have
been somewhat less. Therefore, :it is assumed that administrative-economic
expenditures in 1950 were about 0.5 billion rubles, or about 1.5 percent
of total outlays. Arbitrarily 0.4 billion rubles of this sum is allo-
cated to administrative'wages and the balance to office supplies,, travel
allowances, and the like.
(7) Labor-Day Payments.
On the basis of cash labor-day payments and cash labor-
day payments as a share of total collective farm money income, set out
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below for each of the years 1952, 1954, and 1955, cash labor-day pay-
ments in 1950 are estimated at about 9.9 billion rubles.
Khrushchev announced that for 1952, of total collective
farm money income of 42.8 billion rubles, 124/ 29 percent, or 12.4 bil-
lion rubles, 125J was distributed as cash labor-day payments. According
to official statements, cash labor-day payments in 1955 were 94 percent
greater than in 1952 and 30 percent greater than in 1954. _126J Thus,
if payments in 1952 equaled 12.4 billion rubles, payments amounted to
24.1 billion rubles in 1955 and to 18.5 billion rubles in 1954. There-
fore, in 1955, distribution of 24.1 billion rubles represented 32 percent
In
of total collective farm money income of 75.6 billion rubles. 27
1954, distribution of 18.5 billion rubles represented 29 percent of
total collective farm money income of 63.3 billion rubles. 1 8
Thus, for 1950,, it is assumed, as was the case in 1952
and 1954, that at least 29 percent of total collective farm money in-
come, or 9.9 billion rubles, was distributed as cash labor-day payments.
2. Farm Household Sales and Market Fees.
This portion of this appendix has two objectives -- to derive
estimates of farm household sales of farm products and to obtain an
estimate of collective farm market fees paid by collective farmers.
a. Farm Household Sales.
In 1950, sales of farm products formed the single most im-
portant source of money income of rural farm households. The other
major source, cash labor-day payments to collective farmers, has been
estimated in 1, above. Wage incomes in state agriculture have been
discussed in detail in II, C, 2, a, p. 38, above. Because of the com-
plete absence of data, the remaining source of farm household money
income -- earnings from labor services rendered outside agriculture on
a seasonal or temporary basis -- cannot be estimated.
In the following discussion, farm households are divided
into rural and urban households. The former group includes collective
farmers and also the private plot activity of state farmers, MPS
workers, and other rural residents who are not collective farmers.
The latter group includes the private plot activity of urban workers
and employees.
In Table 12* the three types of sales by farm households
are listed and summed to obtain total gross income from sales. Each
type of sale is discussed in detail below.
Table 12 follows on p. 1'l0 .
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S .-E-?C-R-E -T
Farm Household Sales of Farm Products in the USSR
1-950
Billion Rubles
Rural Urban
Households Households Total
Collective farm ex-village market sales 38.9 4.3 43.2
Sales to state procurement organizations 1.6 0.5 2.1
Sales of livestock to collective farms 2.4 0 2.4
Total 42.9 4.8 LY-. I
(1) Collective Farm Market Sales.
In the absence of data for total village and ex-village
sales by farm households at unfixed -- that is, free -- prices, only
sales in collective farm ex-village markets are considered in the esti-
mate of farm household income from. collective farm market sales. Sales
on the village market by collective farms and farm households to other
farm households are excluded from both debits and credits in the House-
hold Appropriation Account (see II, A, 2, p. 7, above). The commodities
involved in such sales are not, however? excluded from the estimate of
total consumption. Because no allowance is made for their sale in the
distribution of gross output in 4, below, they are assumed to have re-
mained in the possession of the households which produced these commod-
ities or received them as in-kind labor--day payments and therefore to
have been consumed as income-in-kind. The assumption that these com-
modities were consumed as income-in-kind instead of being sold to other
rural households has only a limited effect on the estimate of total
consumption. This effect consists of the possible difference between
the prices imputed to these commodities in the estimate of income-in-
kind and the prices atwhich these commodities were actually sold on
the collective farm village market. The impact of this difference on
the estimates of total consumption and of income originated in agri-
culture is considered to be very small.
Total collective farm ex-village market sales in 1950
amounted to 49.2 billion rubles. 199/ To obtain sales by farm house-
holds, sales by collective farms, estimated below, must be deducted.
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In 1950, sales by collective farms in collective
farm ex-village markets of 251 cities amounted to 12.3 percent 00 of
the total collective farm ex-village market turnover for these 251
cities of 19.5 billion rubles. 201 Therefore, sales by collective
farms amounted to 2.4 billion rubles. Because, however, sales in these
251 cities represented only 40 percent of sales in all collective farm
ex-village markets, it was assumed that sales by collective farms in
markets of these cities also represented only 40 percent of sales by
collective farms in all collective farm ex-village markets. Thus col-
lective farms' sales in all ex-village markets are estimated at 6 bil-
lion rubles.
Deduction of 6 billion rubles from total sales of
49.2 billion rubles leaves 43.2 billion rubles for sales by farm
households.
Total household sales must then be distributed be-
tween rural and urban farm households. It is felt that urban plot
owners market only a small share of their total output, and it is
assumed here that no more than 10 percent of total household sales in
collective farm ex-village markets are transacted by urban plot owners.
Deduction from 43.2 billion rubles of 10 percent, or 4.3 billion rubles,
leaves 38.9 billion rubles for sales in collective farm ex-village mar-
kets by rural households.
(2) Sales to State Procurement Organizations.
Sales of agricultural products to state procure-
ment organizations by farm households are estimated at 2.1 billion ru-
bles, the difference between the total estimated income of collective
farms and the agricultural population from deliveries and sales to the
state of 23.4 billion rubles and sales by collective farms of 21.3 bil-
lion rubles.
For 1950, total sales by collective farms and the
agricultural population are estimated on the assumption that sales by
collective farms of 21.3 billion rubles 202 represented about 91 per-
cent of total sales, as was the case in 1952, when sales by collective
farms of 24.5 billion rubles 203 represented 90.7 percent of total
sales of 27 billion rubles 20 ; in 1955, when sales by collective
farms of 54.8 billion rubles 205 represented 90.3 percent of total
sales of 60.7 billion rubles 20 ; and in 1956, when sales by collec-
tive farms of 74.7 billion rubles 207 represented 91.9 percent of
total sales of 81.3 billion rubles.?208
Thus, if out of total estimated sales of 23.4 bil-
lion rubles, 21.3 billion rubles were sold by collective farms, there
remained for sales to the state by the agricultural population or farm
households 2.1 billion rubles, of which it is assumed that one-quarter,
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or 0.5 billion rubles, represented sales by urban households and the
remainder, 1.6 billion rubles, represented sales by rural households.
(3) Sales of Livestock to Collective Farms.
Livestock sales by collective farmers to collective
farms have been estimated at 2.4 billion rubles (see II, C, 1, f, p. 35,
above).
b. Collective Farm Market Fees.
Daily fees levied on sellers in the collective farm
markets vary with the space used to conduct sales. Sales from trucks
are taxed at 10 rubles per day, from wagons at 5 rubles, and from
tables at 1 to 2 rubles, and sales of cattle are taxed at 3 to 5 ru-
bles per head. 209 For the most part, collective farms sell from
truck and wagon beds and pay the largest unit fees, whereas collective
farmers, selling from small counters and even from the ground, pay
smaller fees. It is assumed that collective farm representatives, al-
though greatly outnumbered by collective farmers, pay fees about equal
to those of collective farmers, because their selling facilities are
more highly taxed.
No precise estimate of fee payments is possible with
available data, but some approximation may be obtained from Mikoyan's
statement in 1953 that. half a million collective farmers went to the
collective farm markets every day of the year. 210 If it is assumed
that each farmer paid 2 rubles per day in market fees, total fees
would be 1 million rubles a day, or perhaps 0.3 billion rubles per year.
3. Income and Outlay of State Farms.
The purpose of this section. of this appendix is to derive
state farms' materials. purchases from the Nonagricultural Enterprise
Sector as a residual calculation on the outlay side of their income-
outlay statement. Theincome-outlay statement in Table 13,* therefore,
shows only their income from sales and subsidies and the outlays made
from these funds; it excluded both budget grants for capital purposes
and the expenditures made with these grants.
a. Sales.
This entry represents the value of state farm deliveries
in terms of effective delivery prices.**
* Table 13 follows on p. 113.
** This information has been gathered by Miss Nancy Nimitz of the RAND
Corporation in connection with her work on Soviet agriculture.
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Table 13
Income and Outlay of Soviet State Farms
1950
Income
Outlay
a.
Sales 5.6 c.
Basic wages
9.9
b.
Subsidies for operations 8.2 d.
Social insurance
0.1+
e.
Materials for operations
2.0
f.
Materials for capital
repairs
0.5
g.
New fixed investment
0.5
h.
Indirect taxes
0.5
i.
Profits
Negli-
gible
Total 13.8 Total
a. Excluding capital grants from the budget and capital expenditures
made with these grants.
b. Subsidies for Operations.
13.8
This entry represents the difference between the esti-
mated outlays of 13.8 billion rubles and income from sales of 5.6 billion
rubles.
c. Basic Wages.
Basic wages have been estimated at 9.9 billion rubles
(see II, C, 2, a, p. 38, above).
d. Social Insurance.
(See II, C, 2, b, p. 1+3, above.)
e. Materials for Operations.
No precise estimate is possible with available data.
An estimate of 2 billion rubles is arbitrarily made. It should be
emphasized that this estimate pertains only to state farms' purchases
from the Nonagricultural Enterprise Sector. The total value of ma-
terials used in operations, including self-produced seed, fodder, and
plants, would of course be much greater.
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f. Materials for Capital Repairs.
State farm capital repairs, made from amortization
allowances, amounted to 1.2 billion rubles (see II, C, 3, a, p. 46,
above), of which it was estimated that 40 percent, or 0.5 billion ru-
bles, represented materials purchases and 60 percent, or 0.7 billion
rubles, represented wages (see II, C, 1, f, p. 35, above). These
wages are included in the figure for basic wages above.
g. New Fixed Investment.
State; farms' new fixed investment, outside the budget,
is the sum of 0.3 billion rubles from retained funds and 0.2.billion
rubles from amortization allowances (see II, C, 3, a, p. 46, above).
h. Indirect Taxes.
(See II, C, 1, b, p. 34, above.)
i. Profits.
Profits are assumed to be negligible.
4. Farm Household Income-In-Kind.
Farm households in. the USSR receive an important part of
their income in the form of income-in-?kind, consisting of agricultural
products received as labor-day payments in kind and of agricultural
produced raised on their on plots. The value of income-in-kind in
1955 is estimated below. First, the theoretical principles underlying
the valuation procedure are discussed. Then the methods used in calcu-
lating income-in-kind are set forth. Finally, the calculations are
presented.
a. Theoretical Principles.
As in the case of all imputed transactions, farm
household income-in-kind is estimated by attributing a monetary value
to a nonmonetary phenomenon. Because farm households consume a share
of the commodities which they produce, this share passes from produc-
tion into consumption without being given a monetary valuation. In
order to assign prices to commodities which are both produced and con-
sumed by farm households, it is necessary to break the identity of
households as both producers and consumers by assuming that production
is sold or that consumption is purchased.
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In Western economies, where a single farm selling price
and a single consumer buying price ordinarily prevail for each commodity,
the practice in national accounting is to value farmers' consumption-
in-kind at the prices which farmers would receive if they were to sell
these commodities instead of consuming them. 211 These selling prices
ordinarily differ from the purchase prices paid by nonfarm consumers by
the amount of distribution and processing charges. This difference
measures the value of distribution and commercial processing services
enjoyed by nonfarm consumers but not by farmers when the latter consume
their output at the point of production and perform their own process-
ing. Home processing, like the services of housewives, is excluded in
the valuation of household consumption. 212
The problem of assigning prices to Soviet farm house-
hold income-in-kind is greatly complicated by the existence of multiple
price systems for both the sale and the purchase of agricultural prod-
ucts in the USSR. The output of collective farms and collective
farmers, for example, is sold at obligatory delivery prices, contract
prices, above-quota state purchase prices, and collective farm market
prices. Nonfarm consumers purchase agricultural products at state re-
tail prices and collective farm market prices. Because of the heavy
reliance of Soviet fiscal policy upon the turnover tax, an excise levied
principally on food and nonfood consumer goods, nonfarm consumers' pur-
chase prices ordinarily differ from farm sale prices by much more than
the cost of distributing and processing farm products. Therefore,
valuation of farmers' consumption-in-kind in the USSR at producers'
selling prices does not render this consumption comparable to that of
urban residents. This is contrary to the case in Western economies,
where, as noted above, valuation at producers' selling prices is equiva-
lent to valuation at consumers' purchase prices when the latter are
adjusted for distribution and processing charges.
Consequently, it appears more satisfactory to value
farmers' consumption-in-kind in the USSR at consumers' purchase prices,
adjusted for distribution and processing charges, than at producers'
selling prices. Valuation of farmers' consumption-in-kind at con-
sumers' purchase prices makes it comparable to nonfarm consumption
and therefore makes it possible to add the two in order to obtain total
household consumption of goods and services.
The method of valuation adopted in this report values
farmers' consumption-in-kind at a weighted average of the two prices
paid by nonfarm consumers -- state retail prices and collective farm
market prices. It therefore differs from the methods used in the
principal earlier studies of Soviet national income and product. In
these studies, farm household income-in-kind was valued at a weighted
average of farm selling prices, 213/ at state retail prices less
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distribution and processing charges, 21-4
/ or on the basis of urban per
capita food expenditures. 215 In comparison with these alternative
techniques, the method used in this report seeks to value farm house-
hold income-in-kind in prices more comparable to nonfarm consumption
without, however, assuming identical per capita consumption by the
farm and nonfarm populations.
b. Method of Calculation.
Farm household income-in-kind is calculated in two
main steps. First, the disposition of agricultural commodities is
estimated in order to derive, as a residual, the quantity of each
commodity that was consumed by farm households as income-in-kind.
Second, the quantity of consumption-in-kind of each product so de-
rived is valued in accordance with the valuation -principles set forth
above. The estimates of the quantities of commodities consumed in
kind by farmers and the estimates of the corresponding monetary values
are both subject to wide margins of error because of many gaps in in-
formation. The monetary values, moreover, are subject to additional
uncertainty because of the assumption required to weight the two sets
of nonfarm food prices.
In Table 14* the disposition of the output of each
product among seed and: feed use (used in production) and the two
marketing channels (state acquisitions and collective farm ex-village
market sales) is estimated. In the case of some of the commodities
in the table, nearly every physical disposition had to be estimated
from indirect data, prewar experience, or approximations based on
general agricultural requirements.
The collective farm market quantities, which were
estimated by the technique set out below, represent sales to nonfarm
consumers in ex-village trade at free prices. Quantities sold at
free prices in village trade by one farm consumer to another farm
consumer are not estimated but appear in the residual column as a part
of consumption-in-kind;
For each commodity the quantity disposed of through
the collective farm market was estimated on the basis of the quantity
sold in the collective farm markets of 251 cities in 1955 216/ and on
the assumption that the quantity sold in 251 cities represented 62 per-
cent of the quantity sold. to nonfarm consumers in all collective farm
ex-village market trade. This assumption is based on the fact that,
for 1955, collective farm ex-village market sales of 30.2 billion ru-
bles in 251 cities 217/ represented 62 percent of total collective
* P. 119, below.
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farm ex-village market sales of 48.9 billion rubles. 218/ The result-
ing 1955 quantity for each commodity was then moved to 1950 by the index
of the physical volume of sales of this commodity in all collective
farm ex-village markets. 219/
Admittedly the weakness in this estimating technique
lies in the assumption, made here out of necessity born of lack of
information, that sales of each commodity in collective farm markets
of 251 cities represent the same percent of total free market sales
of each commodity as the share of ex-village free market trade of
251 cities in total value of sales in all collective farm ex-village
market trade.
In Table 15* the commodities composing farm household
income-in-kind are valued at prices which are weighted averages of
the prices paid by nonfarm consumers. The weighting procedure is based
on the assumption that farmers, who for this purpose are regarded as
purchasers of their in-kind consumption, would have distributed their
purchases of each commodity between the two retail trade outlets --
the state and cooperative trade network and the collective farm market in the same proportions as nonfarm consumers actually distributed their
purchases of each commodity in 1955.
Table 15 shows the estimated quantity of each agricul-
tural product purchased by nonfarm consumers in collective farm markets
and state and cooperative retail outlets. From these estimates are
derived the shares of each commodity purchased in collective farm mar-
kets, on the one hand, and in state and cooperative stores, on the other.
The quantity of each agricultural product purchased by nonfarm consumers
in collective farm markets is taken from Table 14. The quantity of
each product purchased at state and cooperative retail stores is assumed
to be equal to total state acquisitions of that product, also estimated
in Table 14, less military consumption. State acquisitions are allo-
cated not only to retail sales but also to military consumption, exports,
industrial processing, and stockpiles. Moreover, state and cooperative
sales include imports, which are not included in state acquisitions as
calculated in this report. Available data permitted an adjustment only
for military consumption. Lack of data precluded adjustments for
foreign trade, industrial processing, and stockpiling. The probable
net effect of the omission of these adjustments is, in any case, too
small to influence appreciably the relative weights of state and coopera-
tive retail trade purchases and collective farm market purchases.
* P. 120, below.
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The weights calculated on the basis of the quantities
purchased by nonfarm consumers in collective farm markets and at state
and cooperative stores are then applied to farmers, consumption-in-kind
to determine the quantity of each product which they hypothetically
purchased through each trade channel. Finally, the quantity of each
product attributed to each trade channel is valued at the price of that
channel.
All commodities except grain and meat are valued at the
prices corresponding to their unprocessed state, as this is the form in
which they are ordinarily consumed on the farm. In the case of grains,
because farm households consume flour (transformed into bread by home
baking) instead of the commercially baked bread ordinarily consumed by
urban households, the amount retained by farmers is converted into a
flour equivalent which is valued at the estimated mill (wholesale) price
of flour. This priceis used instead of the retail price of flour be-
cause of the artificially high level of the latter. In order to discour-
age home baking and encourage the entry of women into the urban labor
force, the Soviet government has fixed the retail price of flour at more
than the price of an equivalent amount of bread.
Finally, in order to reflect differences in the nature
of farm and nonfarm consumption, nonfarm prices are adjusted to exclude
charges for transportation and marketing, as these services are not
enjoyed by'farm households. An allowance for these costs, labeled
Trade Margin, was deducted from the sums of in-kind consumption priced
at state retail and collective farm market prices in Table 15. Be-
cause of the lack of data, these allowances are only approximate esti-
mates, particularly the allowance for trade costs in collective farm
markets, where these costs are chiefly imputed charges for labor-day
earnings foregone rather than explicit costs.
In Tables 14* and 15,** respectively, the disposition
of agricultural commodities and. the value of farmers, consumption-in-
kind are estimated. Each entry in these tables is explained below.
(1) Disposition of Output of Commodities Included in
Farm Household Consumption-in-Kind see Table 14*).
(a) Grain.
:i. Gross Output.
(See source 2?J0.)XXX
aE **
Table 11i follows on p. 119.
Table 15 follows on p. 120.
Text continued onp. 123.
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ii. Used in Production.
(See source 221
iii. Total Marketed Production.
This was derived as the sum of Total State
Acquisitions and Collective Farm Ex-Village Market Sales (columns D + E).
iv. Total State Acquisitions.
In 1955, total state acquisitions of grain
were 14 percent greater than in 1950. 222/ On the basis of 1955 pro-
curements of 39.8 million tons, computed below, 1950 procurements
amounted to 34.9 million tons.
Sales and deliveries of grain to the state
in 1955 were 147 million poods more than in 1954. 223/ In 1954, sales
and deliveries of grain to the state were 271 million poods more than
in 1953, 224/ when 2.01 billion poods were sold and delivered to the
state. 225 Therefore, in 1955 state acquisitions of grain totaled
2,010 + 271 + 147, or 2,430 million poods, equal to 39.8 million tons.*
Because 1955 procurements amounted to 114 percent of 1950 procurements,
procurements in the latter year may be computed at 34.9 million tons.
v. Collective Farm Ex-Village Market Sales.
In 1955, sales of grain in free markets of
251 cities amounted to 241,900 tons. 226 If it is assumed that such
sales represented 62 percent of sales in all collective farm ex-village
markets (see explanation of this assumption in 4, b, p. 116, above), then
total sales in all collective farm ex-village markets are estimated at
390,000 tons for 1955, when total sales were 71 percent of sales in
1950. 227 Sales in the latter year are estimated at about 600,000
tons.
(b) Potatoes.
i. Gross Output.
In 1950 Soviet potato production was 260
percent of the potato output in 1913. 228 On the basis of a 32-million-
ton crop, computed below for 1913, 1950 potato production amounted to
about 83 million tons.
* Foods are converted at 61.1 poods per metric ton.
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It was announced that potato production in
1956 amounted to 95.5 million tons and that the yield per hectare in-
creased by 36.8 percent above the 1913 yiel!2LOT-H/ence 229 The area sown to
potatoes in 1956 was 9.2 million :hectares. the 1956 yield
equaled 104 centners per hectare, and the 1913 yield equaled 76 centners
per hectare. Thus, it 1913, total potato output amounted to about 32
million tons, given a 'sown area of 4.2 million hectares 231 and a yield
of 76 centners per hectare. Production. in 1950 being 260 percent of
1913 output of 32 million tons, production in 1950 thus amounted to
about 83 million tons.
ii. Used in Production.
(See source 232/.)
iii. Total Marketed Production.
This was derived as the sum of Total State
Acquisitions and Collective Farm Ex-Village Market Sales (columns D + E).
iv. Total State Acquisitions.
(See source 23J3.)
v. Collective Farm Ex-Village Market Sales.
In 1955, sales of potatoes in free markets
of 251 cities amounted to 1.4 million tons. 234 If it is assumed that
such sales represented 62 percent of sales in all collective farm ex-
village markets (see explanation of this assumption in 4, p. 114, above),
then total sales in all collective farm ex-village markets are estimated
at 2.3 million tons for 1955, when total sales were 101 percent of
sales in 1950. 235 Thus sales in the latter year are estimated at
about 2.3 million tons.
(G i ) Vegetables.
i. Gross Output.
In 1955, Soviet vegetable production of
14.2 million tons, computed on the basis of a sown area of 1.5 mil-
lion hectares 236 and a yield of 95 centners per hectare, 237
amounted to 42 percent 238 more than production in 1950. Thus pro-
duction in 1950 amounted to 10 million tons.
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ii. Used in Production.
An estimate of 20 percent of gross output
was made to account for vegetables fed to livestock and for spoilage.
In the 1920's, more than 10 percent of
cabbage production alone was fed to livestock. 239 Because of both
the increase in importance of collective farms in the total area sown
to vegetables and tie shift to planting more perishable vegetables, 240
it is estimated that spoilage could easily account for 10 percent of
the gross harvest.
iii. Total Marketed Production.
This was derived as the sum of Total State
Acquisitions and Collective Farm Ex-Village Market Sales (columns D + E).
iv. Total State Acquisitions.
(See source 241
v. Collective Farm Ex-Village Market Sales.
In 1955, sales of vegetables in free mar-
kets of 251 cities amounted to 853,000 tons. 242 If it is assumed that
such sales represented 62 percent of sales in all collective farm ex-
village markets (see explanation of this assumption in 4, p. 114,
above), then total sales in all collective farm ex-village markets are
estimated at 1.4 million tons for 1955, when total sales were 126 per-
cent of sales in 1950. 243 Thus sales in the latter year are esti-
mated at about 1.1 million tons.
(d) Sunflower Seeds.
i. Gross Output.
The official Soviet index of sunflower seed
output gave 1956 production as 220 percent of 1950 production. 244/
Production in 1956 was announced as 3,867,100 tons. 245/ Therefore, the
1950 gross output amounted to 1,760,000 tons.
ii. Used in Production.
From the gross output of sunflower seeds in
1950, 130,000 tons, or about 7 percent of gross output, was allowed for
the 1951 planting. A seeding rate of 25 kilograms per hectare 246 in
fixed seed requirements for 1951 and a sown area of 3.61 million hectares
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results in seed use of about 90,000 tons. An additional 40,000 tons
is allowed to take care of higher seeding rates in humid areas and for
reseedings in case of frost.
iii. Total Marketed Production.
It is estimated that total state acquisi-
tions of 1,080,000 tons (see iv, below) constituted about 99 percent
of total marketed production of seeds. The other 1 percent is a token
amount estimated to have been sold in the collective farm market to
the populace for chewing. Therefore, total marketed production is
estimated at about 1,090,000 tons.
iv. Total State Acquisitions.
(See source 247
. )
v. Collective :Farm Ex-Village Market Sales.
About 1 percent of total marketed produc-
tion is arbitrarily estimated to have been sold on the urban collective
farm market to meet the people's demand for seeds for chewing.
(e) Flax Fiber.
i. Gross Output.
According to the official Soviet index of
flax fiber output, production in 1.956 was 204 percent of 1950 production. 248
On the basis of an estimated 1956 production of 430,000 tons, computed
below, 1950 flax fiber production amounted to about 210,000 tons.
Belorussia, the leading producer of flax
fiber in the USSR, in 1956 produced 107,200 tons 249 of fiber, which
was almost 25 percent of total Soviet output. 250 Therefore, total
production in 1956 amounted to about 430,000 tons. Then,, if 430,000
tons were 204 percent of 1950 production, 1950 production amounted to
about 210,000 tons.
'ii.. Used in Production.
Not applicable.
iii. Total Marketed Production.
This was derived as the sum of Total State
Acquisitions and Collective Farm Ex-Village Market Sales (columns D + E).
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iv. Total State Acquisitions.
(See source 251
v. Collective Farm Ex-Village Market Sales.
State acquisitions through contracts
account for all of the marketings of this valuable cash crop.
(f) Meat.
i. Gross Output.
Khrushchev announced total meat output
for 1956 as 6.5 million tons, slaughter weight. 252 This figure in-
cludes beef, pork, mutton, poultry, and minor "other" meats. It is
felt that this figure reflects not only pure meat but also subproducts --
that is, less desirable but still edible parts of the animal such as
liver, hearts, tongues, and the like. Inclusion of the latter sub-
products, even though certainly a part of meat consumed by the popula-
tion and so calculated by Soviet statisticians in per capita meat con-
sumption by the population, 253 presents a pricing problem which
cannot be adequately solved with currently available price and quantity
information. Hence, in Table 14 only the Soviet output of beef, pork,
mutton, and poultry, excluding all subproducts, is included. It was
assumed that subproducts represented at least 20 percent of the 1956
meat output of 6.5 million tons. The remaining 80 percent, or 5.2 mil-
lion tons, is taken into account here.
If 1956 meat output of 5.2 million tons
was 133 percent of 1950 output, 254 then meat production in the latter
year may be estimated at about 3.9 million tons.
ii. Used in Production.
Not applicable.
iii. Marketed Production.
This was derived as the sum of Total State
Acquisitions and Collective Farm Ex-Village Market Sales (columns D + E).
iv. Total State Acquisitions.
The state processed 1.4 million tons of
beef, pork, mutton, and poultry in 1950. 255 This quantity is assumed
to represent the slaughter weight of total deliveries of livestock to
the state.
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jr. Collective Farm Ex-Village Market Sales.
In 1955, sales of meat in free markets of
251 cities amounted to,270,000 tons. 25 J If it is assumed that such
sales represented 62 percent of sales in all collective farm ex-
village markets (see explanation of this assumption in 4+, b, p. 116,
above), then total sales in all collective farm ex-village markets are
estimated at 430,000 tons for 1955, when total sales were 98 percent
of sales in 1950. 257 Thus sales in the latter year are estimated
at about 400,000 tons.
(g) Milk.
. Gross Output.
(See source 25/.)
ii. Used in Production.
On the basis of information on the fatten-
ing of animals on collective farms, it is estimated that milk fed and
wasted constitutes about 15 percent of gross output. 2.L9/
iii. Total Marketed Production.
This was derived as the sum of Total
State Acquisitions and Collective Farm Ex-Village Market Sales
(columns D + E).
iv. Total State Acquisitions.
(See source 260/.)
. Collective Farm Ex-Village Market Sales.
In 1.955, sales of milk and milk products
(both expressed in terms of milk) in free markets of 251 cities amounted
to 561,000 tons. 261 !If it is assumed that such sales represented
62 percent of sales in; all collective farm ex-village markets (see
explanation of this assumption in 1+, b, p. 116, above), then total sales
in all collective farm ex-village markets are estimated at 900,000 tons
for 1955, when total sales were 118 percent of sales in 1950. 262
Thus sales in the latter year are estimated at about 800,000 tons.
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(h) Wool.
i. Gross Output.
(See source 263 .)
ii. Used in Production.
Not applicable.
iii. Total Marketed Production.
This was derived as the sum of Total State
Acquisitions and Collective Farm Ex-Village Market Sales (columns D + E).
iv. Total State Acquisitions.
(See source 264/.)
v. Collective Farm Ex-Village Market Sales.
As in the case of flax fiber, it is assumed
that all significant marketed production of this commodity passes
through State Acquisitions.
(i) Eggs.
i. Gross Output.
(See source 265 .)
ii. Used in Production.
Arbitrarily an allowance of 2 billion
eggs was estimated to be necessary for maintaining flocks.
iii. Total Marketed Production.
This was derived as the sum of Total
State Acquisitions and Collective Farm Ex-Village Market Sales
(columns D + E).
iv. Total State Acquisitions.
(See source 26Y. )
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v. Collective Farm Ex-Village Market Sales.
In 1955, sales of eggs in free markets of
251 cities amounted to 615 million units. 267 If it is assumed that
such sales represented 62 percent of sales in all collective farm ex-
village markets (see explanation of this assumption in 4+, b, p. 116,
above), then total sales in all collective farm ex-village markets are
estimated at 992 million units for 1955, when total sales were 230 per-
cent of sales in 1950. 268/ Thus sales in the latter year are estimated
at about 400 milliQn units.
(2) Valuation of Farm Household Consumption-in-Kind
see Table 15, p. 120, above).
(a) Commodity.
i. All Other.
The items listed in ;column A of Table 15,
above, are identical with those appearing in Table 14+, above, with the
addition of a residual. category All Other. The valuation assigned to
these other commodities is necessarily a notional allowance, given the
absence of adequate production and. marketing information concerning
these items. Products. assumed to be included under the designation
All Other are fruits, nuts, berries, honey, mushrooms, fresh-water
fish, game animals and their products, minor technical crops (fibers
other than flax, and oil seeds other than sunflower), tobacco and
makhorka, tea, herbs, and firewood. The large number of products is
in itself no measure of the relative value of All Other compared to
the specified products. The object of consideration must be the typical
Russian farmer, from whose point of view the important agricultural
commodities consumed in-kind other than those specified in-the 'table
are fruit and fresh-water fish and, to a lesser extent, mushrooms and
game animals. The average Russian farmer does not receive tea, herbs,
tobacco, or even oilseed products in-kind, but rather buys them for cash
in the market. On the other hand, the typical farmer does heat his hut
with firewood, most of which he receives from collective farm and state
forest lands through his own cutting.
Precise measurement of All Other products
being out of the question, it is possible only to make some judgment
about a reasonable order of magnitude. It seems possible that the
value of -the commodities in question may constitute 15 percent of total
farm household consumption-in-kind.
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(b) Total Marketed Production.
(See Table 14, p. 119, above.)
(c) Total State Acquisitions.
(See Table 14.)
(d) Purchases in Collective Farm Ex-Village Mar-
kets.
(See Table 14.)
(e) Military Consumption.
Data from source 269/ give amounts of food-
stuffs per man per day. These amounts were adjusted to an annual basis
and were multiplied by the estimated number of Soviet militarized per-
sonnel in 1950. 270
(f) Purchases in State and Cooperative Retail
Outlets.
This is the difference between Total State
Acquisitions and Military Consumption (columns C - E).
(g) Total Retail Purchases.
This is the sum of purchases in state and co-
operative retail outlets and in collective farm ex-village markets
(columns D + F).
(h) Farm Household Consumption-in-Kind.
(See Table 14-, p. 119, above.)
(i) Quantity of Farm Household Consumption-in-
Kind Valued at State Retail Prices.
For each commodity, the share of consumption-
in-kind valued at state retail prices is equal to the share of pur-
chased consumption obtained through state and cooperative retail trade
(columns G x H).
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(j) 1950 State Retail Prices.
These prices are derived by application to
announced absolutes for various years of information contained in
numerous price decrees. For some commodities, state retail prices are
not applicable. Therefore, other prices were used: for grain, the
mill price of flour 2'l ; for flax fiber, the contract sale price 277j2;
and for wool, the obligatory delivery price.
(k) Value of the Share of Farm Household Co_n__sumption-
in-Kind Priced at State Retail Prices.
This is the product of the share of farm house-
hold consumption-in-kind valued at state retail prices and the corre-
sponding state retail prices (columns :I X J).
(1) Quantity of Farm Household Consumption-in-Kind
Valued at 1950 Collective Farm Market Prices.
For each commodity the share of consumption-in-
kind valued at estimated collective farm market prices is equal to the
share of purchased consumption obtained through collective farm market
trade (columns G x H)..
(rr) 1950 Collective Farm Ex-Village Market Prices.
These prices are based (as described below) on
commission trade prices for 1955, the relationship of commission trade
prices to collective farm market prices for 1955, and the index of
collective farm market-prices, 1950-55.
Commission trade prices for 1955 for each com-
modity were computed from corresponding quantity and value data. 273
These prices were then, converted to 1955 collective farm market price 274+
by means of the percentage relationship per commodity for 1955 of com-
mission sale prices to collective farm market prices. 275 The result-
ing prices were then moved to 1950 by means of the price index for each
commodity sold in collective farm markets. 276
(n) Value of the Share of Farm Household Consumption-
in-Kind Priced at 1950 Collective Farm Market
Prices.
This is the product of the share of farm house-
hold consumption-in-kind valued at collective farm market prices and the
corresponding 1950 collective farm market prices (columns L x M).
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(o) Total Value of Farm Household Consumption-in-
Kind.
This is the sum of the values of the two shares
of farm household consumption-in-kind, one priced at state retail prices
and the other priced at collective farm market prices (columns K + N).
(p) Trade Margin Allowance.
i. Share of Consumption-in-Kind Priced at
Retail Prices.
The trade margin on food sales by state and
cooperative retail outlets, excluding public dining establishments, is
estimated at 11 percent on the basis of (a) the average markups in re-
tail and wholesale trade, (b) the relative importance of food and non-
food goods in total, state and cooperative sales, and (c) the difference
in marketing costs between food and nonfood goods.
The trade markup is the sum of costs of
operation and profits. In 1950, total state and cooperative retail
trade turnover, excluding public dining, was 312.2 billion rubles.-277/
In retail trade the markup of goods in 1950 was 22.3 billion rubles 278/;
in wholesale trade the markup was 5.6 billion rubles (the sum of total
costs of 5.5 billion rables 279 plus profits of 0.1 billion rubles). 280
The combined retail and wholesale markup was therefore 22.3 plus 5.6, or
27.9 billion rubles. This is 8.9 percent of total retail trade turnover
of 312.2 billion rubles.
In 1950, foodstuffs accounted for 52.9 per-
cent, and nonfood goods 47.1 percent, of state and cooperative retail
sales (excluding public dining). 2L
A recent Soviet source indicates that mar-
keting costs for food goods are five-thirds the level of marketing costs
for nonfood goods. 282 Then, if X = the markup in food distribution
and Y = the markup in nonfood goods distribution, X = 3 Y and 0.529 X +
0.471 Y = 8.9. Solution of these equations yields 11.0 for X and 6.6
for Y. Therefore, it is estimated that marketing costs in the state and
cooperative retail trade network average 11 percent of the value of food
sales.
In the application of this estimate, no
attempt is made to allow for the large variations in the cost of market-
ing different agricultural products in the USSR. 283 The list of com-
modities composing farm household consumption-in-kind is by no means
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complete, and the individual quantities of all the various products
included under All Other cannot be specified. Therefore, a general
estimate of marketing costs for food is used instead of one embodying
individual adjustments i for each commodity.
ii. Share of Consumption-in-Kind Priced at
Collective Farm Market Prices.
This allowance for costs incurred in col-
lective farm market trade is essentially notional. It is based on
the assumption that the chief element of trade costs, labor, is
appropriately assigned less value in collective farm market trans-
actions than in stateand cooperative retail trade, because collective
farmers' incomes are lower than those of urban workers and employees.
No reliable calculation of labor, transport, and tax costs incurred in
collective farm market trade -is possible with existing data. There-
fore, it is arbitrarily assumed. that trade costs in collective farm
market trade, as they are certainly somewhat smaller than food distri-
bution costs in state and cooperative retail trade, may have amounted
to 4 billion rubles, or about 9 percent of the volume of turnover.
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SOVIET NATIONAL ACCOUN'T'S, 1950:
METHODOLOGY FOR CAPITAL ACCOUNTS
Appendix C presents in detail the methodology for making the esti-
mates of the entries in the capital accounts of the various sectors
of the Soviet econQmy.
Although authority for many of the capital accounts entries comes
directly from official sources and although the methodology for the
other entries could have been stated in the accounts proper, it is
felt that the data and methods for deriving the data should be pre-
sented in consolidated form for two reasons: (1) the methodology in
most instances is intricately related to the derivation of data in
other entries in the same or other capital accounts, mainly because
of the lack of direct data from official sources and therefore the
need to resort to indirect, complex, and residual procedures, and
(2) these difficulties generated rather lengthy methodologies which
would only add to the already formidable task facing the reader in
the accounts proper.
1. Household Sector (see II, A, 3, a, (2), p. 17, above).
New fixed investment of 6.2 billion rubles represents the
value of private urban and rural housing constructed in 1950. The
sources of financing this investment are as follows:
Billion Current Rubles
Urban
Rural
Investment-in-kind
1.10
2.70
Long-term credits
0.72
0.65
Savings
0.38
0.65
Total
2.20
i+. 00
The data in the above tabulation are derived as follows:
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(1) Urban.
The estimated average cost per square meter of pri-
vate urban housing construction of 500 rubles 28~ is multiplied by the
estimated total amount of dwelling space built .
, 4 million square me-
ters. 285
(2) Rural.
The estimated value per rural dwelling constructed,
10,000 rubles, is multiplied by the number of dwellings constructed in
1950, 4+ million. 286
b. Long-Terra Credits.
Loans for private urban housing construction through
the communal bank totaled 0.72 billion rubles. 287 Loans for private
rural construction are. estimated at one-sixth the total value of rural
private dwelling construction, an estimate based on planned loans for
195+ for state farms of 0.15 billion rubles and for MTS workers of 0.45
billion rubles 288 and on planned loans for collective farmer housing
in 1955 of approximately 1.0 billion rubles. 289
c. Investment-in-Kind..
It is estimated that labor furnished by individuals
building their own houses represented one-half the value of private
urban construction and two-thirds of the value of rural construction,
or one-half of 2.2 billion rubles and two--thirds of 4.0 billion rubles,
or a total of 3.8 billion rubles.
d. Savings.
It is estimated that approximately one-half of the val-
ue of private urban construction and one-sixth of the value of private
rural construction were provided by savings.
2. Nonagricultural Sector (see II, B, 3, a, (2), p. 28, above).
Total new fixed investment of the Nonagricultural Enter-
prise Sector is estimated at 102.L. billion rubles, of which the budget
provided 80.9 billion rubles (capital transfers from the Government
Sector); amortization deductions, 9.3 billion rubles (capital consump-
tion allowances); retained profits, 10.0 billion rubles (savings); and
other miscellaneous decentralized sources, 2.2 billion rubles (savings
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and bank loans), of which it is estimated that 600 million rubles rep-
resent long-term borrowing. The derivation of these estimates involves
a rather lengthy explanation based on the indicated sources of financ-
ing new fixed investment.
To obtain the relevant data for the Nonagricultural Sector,
it was necessary to derive estimates that were consistent with the fi-
nancing of investment to other sectors and with control totals of all
sector investment and its financing.
Therefore, the discussion that follows includes not only
the Nonagricultural Sector but also the Agricultural and Government Sec-
tors as to sources of financing new fixed investment.
The following tabulation summarizes the estimates of new
fixed investments for the three sectors and the sources for financing
these investments:
Distribution of Investments, by Sector and Source of Financing
Sector
Total
Budget
Amortization
Profits
Other
Nonagricultural
102.4
80.9
9.3
10.0
2.2
Agricultural (state)
13.1
12.6
0.2
0
0.3
Government
6.5
6.5
0
0
0
Total
122.0
100.0
9.5
10.0
2.5
The total planned expenditures on investments came to 135.6
billion rubles in 1950, 290 of which 106.5 billion rubles were to be
financed from the state budget and 29.1 billion rubles 291 from the
funds of the various individual enterprises. It is estimated below that,
of the funds planned to be invested by the use of the enterprises' own
funds, 29.1 billion rubles, the following sources were planned: funds
from enterprise profits, 12.3 billion rubles; funds from amortization
allowances, 9.5 billion rubles; and funds from other sources, 7.3 bil-
lion rubles.
This resume of planned expenditures is required before the
actual estimated expenditures are discussed below. The breakdown as to
sources of financing for all sectors (excluding the Household Sector)
and for the Nonagricultural Sector follows.
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a. Budget.
It is estimated that actual expenditures from the
budget amounted to 100billion :rubles. It is assumed that almost the
entire amount of underfulfillment of planned budgetary expenditures
for financing the national economy of 6.8 billion rubles 292 repre-
sented an underfulfillment of planned investment expenditures. It is
known that agricultural investments from the budget were almost 3 bil-
lion rubles less than planned 2(
2V and that general industrial budg-
etary expenditures (including investments) were almost 7 billion rubles
less than planned. 294; The use of budget funds as a source of financ-
ing by the Agricultural Sector came to :L2.6 billion rubles (see 3,
p. 139, below) and by the Government Sector, 6.5 billion rubles (see 4,
p. 140, below). Therefore, the residual of 80.9 billion rubles (100.0
billion rubles less 12.6 billion rubles and 6.5 billion rubles) was
used to finance the Nonagricultural Sector.
b. Enterprises' O-vni Funds.
(1) Retained Earnings (Profits as a Source).
Actual profits used for financing centralized capi-
tal investments are estimated at 10 billion rubles, or 40 percent of
actual retained profits for 1950 of 25.1 billion rubles. 295 It is
estimated that all 10 billion rubles were used by the Nonagricultural
Sector to finance investments. The 40-percent usage of profits for
this purpose is derived from the planned percentages for a series of
years before and after:1950: 1948, 36 percent; 1949, 43 percent; 1954,
37 percent; 1955, 43.5'percent; 1956, 40 percent; and 1957, 33 per-
cent. 296 An arbitrary estimate of 40 percent is used which would
give an estimated planned investment of 12.3 billion rubles from planned
retained profits of 30.7 billion rubles,, or 10.0 billion rubles of actu-
al profits of 25.1 billion rubles. The Nonagricultural Sector would be
the only sector making use of this source of financing because there
were negative profits in the state Agricultural Sector and because the
concepts discussed here would not be relevant for nonstate agriculture
or for the Government Sector.
(2) Amortization Deductions as a Source.
Amortization deductions for new investments have
been estimated at 9.5 billion rubles (see C, p. 144, below). Of this
total, it is assumed that 0.2 billion rubles were used for state agri-
cultural investments (see 3, p. 139, below) and, that the remaining
9.3 billion rubles were used for Nonagricultural Enterprises.
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(3) Other Sources.
The "other" sources are the many small miscella-
neous monetary resources set aside for decentralized investments.
These are estimated at 2.5 billion rubles. Of "other" sources, it is
estimated that 300 million rubles were used as decentralized invest-
ments in the state Agricultural Sector and that 2.2 billion rubles
were used as decentralized investments in the Nonagricultural Sector.
Of the 2.2 billion rubles, investments by decen-
tralized means by local industry are estimated at 300 million rubles;
by consumer cooperatives, 330 million rubles; by producer coopera-
tives, 700 million rubles; for state-owned housing, 700 million rubles;
and by state-controlled collective farm markets, 140 million rubles.
3. Agricultural Sector (see II, C, 3, a, (2), (a) and (b),
pp. 46 and 7, respectively, above).
Total new fixed investment of state agricultural enter-
prises is estimated at 13.1 billion rubles, and total new fixed in-
vestment of collective farms is estimated at 5.9 billion rubles,
including 12.6 billion rubles from the budget; 0.2 billion rubles
from capital consumption allowances (savings -- see B, p. 143, below);
long-term loans, 1.7 billion rubles (gross borrowing from the Govern-
ment Sector); and 4.5 billion rubles from other savings, including
3.5 billion rubles from money balances of indivisible funds of collec-
tive farms, 700 million rubles for labor-in-kind, and 300 million
rubles from miscellaneous decentralized sources of sovkhozes (savings).
a. New Fixed Investment in State Agriculture.
New fixed investment in state agricultural enterprises
is estimated at 13.1 billion rubles, of which 12.6 billion rubles were
assigned from state budget sources, 297 0.3 billion rubles from
savings in state farms (other than profits), and 0.2 billion rubles
from amortization allowances of state farms (see B, p. 143, below).
Of the 0.3 billion rubles "savings" in sovkhozy,
0.2 billion rubles were designated as retained earnings "for the fund
for development and expansion of farms" 298 (not to be confused with
profits) of state farms of the Ministry of State Farms. In addition,
100 million rubles are arbitrarily added to this account for the same
funds of state farms other than those of the Ministry of State Farms.
Of the budget allocations of 12.6 billion rubles,
6.2 billion rubles were for MTS investments and 6.4 billion rubles
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for state farms and general agricultural projects (including affore-
station). The 6.2 billion rubles for MTS investments were derived
as the residual of total budget allocations to MTS's in 1950 of
17.5 billion rubles 299 less total operating expenditures of 11.3
billion rubles (see II, C,. 1, a, (1), p. 32, above). The differ-
ence between the 12.6billion rubles of total budget allocations and
6.2 billion rubles for. MTS's equals 6.11 billion rubles for general
agricultural projects of state farms.
b. New Fixed Investment in Collective Farms.
New fixed investment in collective farms is estimated
at 5.9 billion rubles, of which. 5.2 billion rubles represent money
investments 300 and 0.7 billion rubles labor investment-in-kind.
Labor: investment-in-kind was estimated by relating
money expenditures on construction materials, equipment, and outside
labor to total labor costs that is, outside labor paid wages and in-
ternal labor paid in-kind. Relations of these data are obtained for
a 1951-53 average and '19511 and are used. to estimate the in-kind la-
bor costs for 1950. The following tabulation gives the relevant
data for such an estimate:
1951-53
19511
1950
(1)
Money investment plus all labor
in construction excluding
livestock
36.0 301
16.0
302
N.A.
(2)
Money investment for new fixed
investment plus capital repair
35.5 ~303/
16.6
3011
9.6
305
Livestock acquisitions
5.0 306
2.5
307
3.2
3/
(3)
Money investment for new fixed
investment plus capital repair
minus livestock acquisitions
30.5
111.1
6.4
(4)
Balance for all labor (1) minus
(3)
5.5
1.9
N.A.
(5)
Money expenditure for construc-
tion materials, equipment, and
outside labor
16.0 309
8.5
310
3.3
311
(6)
Relation of (4) to (5) (per-
cent)
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Labor-in-kind, therefore, for 1951-53 and 1954 ranges
between 22 and 34 percent of total money expenditures on construction
materials, equipment, and outside labor. When applied to line (5) for
1950, the range of labor-in-kind expenditures, a range Of 0.7 billion
to 1.1 billion rubles is obtained. An estimate of 1.0 billion rubles
is used. This figure is divided between new investment, 0.7 billion
rubles, and capital repair, 0.3 billion rubles, in the same proportions
as money expenditures.
4. Government Sector (see II, D, 3) c, (2), p. 64, above).
Total new fixed capital investments by the Government
Sector are estimated at 6.5 billion rubles, including investment by
the Ministry of Defense of 4 billion rubles, by social-cultural minis-
tries of 2 billion rubles, and by administrative organizations of
0.5 billion rubles, all of which was provided by the budget.
The component estimates above are based on such tenuous
evidence t4iat the possibility of rather large errors is suggested.
The estimate of investments by the Ministry of Defense
of 4 billion rubles is derived by relating planned construction for
defense-related industries in the year 1947 to total investments and
to total defense expenditures in 1947 and 1950. The 1947 plan for the
volume of construction-installation work by contract organizations of
the Ministry of Construction of Military and Naval Enterprises was
1.75 bil-Lion rubles (expressed in 1945 prices). 312 This planned con-
tractual work was undertaken for both the Ministry of Defense and other
industries related to the Ministry of Defense.
In order to derive an estimate of total defense invest-
ment in 1947, it was assumed that defense-related contractual construc-
tion bore the same relation to total defense-related construction and
that total defense construction bore the same relation to total new
fixed capital invested in defense-related industries as general con-
tract construction (all state sectors) did to general construction,
which in turn was related to general new fixed capital investment.
Contract construction in 1947 (in 1955 prices, which
are within 5 percent of 1945 prices) was 68 percent of total general
construction, which in turn was 65 percent of total new fixed capital
investment (exclusive of kolkhoz investment). 313 Thus total defense
investments in 1947 can be roughly estimated at . billion rubles
(1.75 : (0.65) (0.68) = 4.0 billion rubles). It is necessary to make
an estimate of the share of work for the Ministry of Defense and the
share for defense-related industries. It is conjectured that 50 to 80
percent was for the Ministry of Defense in 1947; thus 50 to 80 percent
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of 4 billion rubles would give an. estimate of 2 billion to 3 billion
rubles for Ministry of Defense investment. This estimate of 2 billion
to 3 billion rubles in 1947 can be related to (a) total investments in
1947 and 1950 and to (b) total defense expenditures in 1947 and 1950,
as follows. (a) Planned centralized investments in 1947 were 50 bil-
lion rubles. 314 An estimate of 2 billion to 3 billion rubles of
Ministry of Defense investments would represent 4 to 6 percent of the
planned total. In 1950, actual. centralized investments were estimated
at 118 billion to 120billion rubles. If the 4 to 6 percent range is
applied to this total,; a range of 4.7 billion to 7.2 billion rubles is
obtained. (b) Total defense expenditures in 1947 came to 66.3 billion
rubles. 315 The estimate of 2 billion to 3 billion rubles for Minis-
try of Defense investments in 194"7 would be 3.0 to 4.5 percent of de-
fense expenditures. Application of this percentage to 1950 defense
expenditures yields an investment estimate for the Ministry of Defense
of 2.5 billion to 3.7 billion rubles.
The upper and lower ranges resulting from the use of
methods (a) and (b), therefore, are 2.5 billion to 7.2 billion rubles.
An estimate of 4 billion rubles is taken as a conjecture. This comes
to 5 percent of the defense budget for 1950. As a check on the relia-
bility of this estimate, it can be compared to the relationship of
construction to total defense expenditures in the US, which during
1951-55 ranged between 2.5 and 5.0 percent as a percentage of total
defense expenditures. 3_i y
The estimate of 2.0 billion rubles for so-called
social-cultural investments was derived by starting from a large aggre-
gate (expressed in 1955 prices) and deducting other expenditures, thus
treating social-cultural as a residual.
Investments in housing, communal services, and social-
cultural measures in 1951-55, in 1955 prices, amounted to 120 billion
rubles. 317 Of this amount, approximately 95 billion rubles were
invested in housing, leaving a balance of 25 billion for communal and
social-cultural investments. 318] In terms of 1950 prices, this re-
sidual of 25 billion rubles is approximately 30 billion rubles for
1951-55.
This figure represented ":nearly a 50-percent in-
crease" 3P-which above the: years of the Fourth Five Year Plan period
(1946-50 can be estimated, therefore, to have come to 20 bil-
lion rubles. From these two pieces of evidence an estimate of 5 bil-
lion rubles for 1950 (in current prices) is made.
From this total, communal investments are estimated
at 3 billion rubles on the basis of the Fourth Five Year Plan of
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12 billion rubles. 320 This estimate leaves a balance of 2 billion
rubles for social-cultural investments. It is assumed that the entire
amount was spent under the social-cultural budget. It is conjectured
that about 0.5 billion rubles were spent in 1950 for the construction
of administrative facilities.
B. Capital Repairs.
1. Nonagricultural Sector (see II, B, 3, a, (1), p. 28, above).
The estimate of 21.3 billion rubles results from deducting
from total capital repairs of 26.0 billion rubles 322 (excluding col-
lective farms) capital repairs for state agriculture of 2.8 billion
rubles and for the Government Sector of 1.9 billion rubles. The
sources for financing this sector's capital repairs include 18.3 bil-
lion rubles from consumption allowances, 2.5 billion rubles from re-
tained profits, and 0.5 billion rubles from other sources.
The estimate of the use of capital consumption allowances
of 19.5 billion rubles for this purpose was made by deducting other
sources from the control total of 26.0 billion rubles.
The estimate of 2.5 billion rubles for retained profits
financing was based on the use of a planned relationship in 1949, when
12 percent of retained profits were to be used as expenditures for
capital repairs. 323 It is assumed that, of retained profits, 10 per-
cent, or 2.5 billion rubles, were used for such a purpose in 1950.
Based on conjecture, 0.5 billion rubles were assigned to capital re-
pairs from other sources such as director's funds, rental receipts
from nondwelling buildings, bank loans, and above-plan profits.
2. Agricultural Sector (see II, C, 3, a, (1), p. 46, above).
The total of 4.3 billion rubles is composed of capital
repairs by MTS's of 1.6 billion rubles (see II, C, 3, a, (1), (a),
p. 46, above), by state farms of 1.2 billion rubles (see II, C) 3, a,
(1), (b), p. 46, above), and by collective farms of 1.5 billion rubles.
Collective farm expenditures of 1.5 billion rubles are made up of
J and an estimated
1.2 billion rubles from nonlabor expenditures 324
0.3 billion rubles as labor-in-kind payments (see A, 2, p. 136, above).
The source of financing MTS capital repairs was from the
state budget; state farm from capital consumption allowances; and
collective farm from the "indivisible fund" here classified as "other
sources."
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Government Sector (see II:, D, 3, c, (1), p. 63, above).
The total of 1.9 billion rubles is based on a conjectured
estimate of 0.5 billion rubles for capital repairs by the Ministry of
Defense and 1.4 billion rubles by social-cultural ministries in the
Government Sector. The source of financing is assumed to be entirely
from the state budget.
4. Summary of the Sources of Financing of Capital Repairs.
The following tabulation shows in summary form the sources
of financing capital repairs in the three sectors:
Sources of Financing Capital Repairs
Billion Current Rubles
Retained
Sector Amortization Budget Profits Other Totals
Nonagricultural 18.3 0 2.5 0.5 21.3
Agricultural 1.2 :L.6 0 1.5 4.3
Government 0 :L.9 0 0 1.9
19.5 '35 225 2.0 27.5
C. Capital Consumption Allowances.
1. Nonagricultural Sector (see II, B, 1, c, p. 21, above).
Capital consumption (amortization) allowances of 27.6 bil-
lion rubles were estimated by deducting the allowances for the Agri-
cultural Sector from the total. allowances of 29.0 billion rubles (no
allowances are indicated for the Government and Household Sectors).
Total capital consumption allowances were derived as follows. Total
capital repairs in 1950 were announced at 26 billion rubles 325 (ex-
cluding kolkhoz and household repairs). Of this total, 19.5 billion
rubles were financed from capital consumption allowances (see B, 4,
above).
It is then necessary to estimate what share of total capi-
tal consumption allowances was used for capital repairs in order to
derive total allowances. Although this share is not for the economy
as a whole, certain sector data are available. In 1950, industry in
general used 58.8 percent 326 of capital consumption allowances for
capital repairs; the Ministry of Railroads, 100 percent 327/; and
state farms, in 1951,185 percent, 328/ and, in 1952, 80 percent. 329
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Sectors obtaining allowances from nonproductive assets
have devoted about 60 percent to capital repairs throughout the post-
war period. From the above and from known distribution of assets, it
is assumed that capital repair financing at the rate of 85 percent
was applicable to the remaining 30 percent of amortized assets. Thus
an average of 67 percent is estimated.
Total capital consumption allowances of 29 billion rubles
are therefore indicated on the basis of 19.5 billion rubles (used for
capital repairs) representing 67 percent of the total allowances.
The difference between 29 billion rubles and 19.5 billion
rubles is used to finance new investments.
2. Agricultural Sector (see II, C, 1, c, p. 35, above).
For the estimate of 1.4 billion rubles, see II, C, 1, c,
p. 35, above.
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APPENDIX D
SOURCE REFERENCES
Evaluations, following the classification entry and designated
"Eval.," have the following significance:
S
ource of Information
Doe. - Documentary
1
- Confirmed by other
sources
A
- Completely reliable
2
- Probably true
B
- Usually reliable
3
- Possibly true
C
- Fairly reliable
4
- Doubtful
D
- Not usually reliable
5 - Probably false
E
F
- Not reliable
- Cannot be judged
6 - Cannot be judged
"Documentary'refers to original documents of foreign govern-
ments and organizations; copies or translations of such documents
by a staff officer; or information extracted from such documents
by a staff officer, all of which may carry the field evaluation
"Documentary."
Evaluations not otherwise designated are those appearing on the
cited document; those designated "RR" are by the author of this
research aid. No "RR" evaluation is given when the author agrees
with the evaluation on the cited document.
Unless otherwise indicated, all sources listed below are UNCLASSI-
FIED and are evaluated RR 2.
1. USSR, Tsentral'noye Statisticheskoye Upravleniye. Sovetskaya
torgovlya (Soviet Trade), Moscow, 1956, p. 7. Eval. Doe.
(hereafter referred to as USSR, TsSU. Sovetskaya torgovlya)
2. Moskvin, V. "Planirovaniye roznichnogo tovarooborota" (The
Planning of the Retail Trade Turnover), Planovoye khozyaystvo,
no 1, 1955, p. 82.
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Lifits, M.M. (ed). Ekonomika sovetskoy torgovli (Economics
of Soviet Trade), Moscow 1955, p. 225.
Sokolov, V., and Nazarov, R. Sovetskaya torgovlya v posle-
voyennyy period (Soviet Trade in the Postwar Period), Moscow,
1954, p. 23.
3.
Ryauzov, N.N., and Titel'baum, N.P. Statistika sovetskoy
torgovli (Statistics of Soviet Trade, Moscow, 1951, p. 72.
4.
Ryauzov, N.N., and Titel''baum, N.P. Kurs torgovoy statistiki
(A Course in Trade Statistics), Moscow, 1947, p. 61-62.
5.
Sen'ko, A. "Promyslovaya kooperatsiya za 40 let" (Producers'
Cooperatives for 40 Years), Promyslovaya kooperatsiya, no 11,
1957, p? 4.
6.
CIA. CIA/RR 150, outlays on Consumer Services in the USSR,
1948-6o, Nov 58. S.
7.
CIA.
CIA/RR 92, Housing in the USSR, 12 Jul 57, p. 44. C.
8.
Ibid.,
p. 7. C.
9.
Ibid.
10.
Ibid.,
p. 8. C.
11.
USSR,
TsSU. Sovetskaya torgovlya (1, above), p. 19.
12.
USSR,
Moskovskaya Vysshaya Shk.ola Profdvizheniya. Finansy
professional'nykh soyuzov (The Finances of Trade Unions ,
Moscow, 1955, p. 13.
13.
Stepanov, M. "Profsoyuznyy byudzhet -- material'naya baza
raboty profsoyazov" (The Trade Union Budget -- Material Base
for Trade Union Work), Pr_ofessional'nyye soyuzov, no 1, 1947-
p. 21. Eval. RR 1.
14.
Kommunisticheskaya Partiya Sovetskogo Soyuzov, Tsentral'nyy
Komitet. Ustav vsesoyuznoy kommunisticheskoy partii
bol'shevikov Rules of the All-Union Communist Party of
Bolsheviks
15. Gruliow, Leo (ed). Current Soviet Policies, New York, 1953,
p. 93. Eval. RR 1.
16. Pravda, 9 Dec, 47, p. 1.
17. CIA. CIA/RR 92 (7, above), p. 8, 46, 73. C-
18. CIA. CIA/RR 133, Soviet National Accounts for 1955, 28 May 58. S.
19. USSR, Tsentral'noye Statisticheskoye Upravleniye. Narodnoye
khozyaystvo SSSR v 19,godu (The National Economy of the
USSR in 1956), Moscow, 1957, p. 203. Eval. Doc. (hereafter
referred toas USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956
godu). Eval. Doc.
20. Izvestiya, 27 Jan 51, p. 1.
21. Yonowitch, M. "Changes in the Soviet Money Wage Level Since
1940," American Slavic and East European Review, vol XIV, no 2,
1955, p. 223.
22. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19, above).
23. Ibid.
24. Yonowitch, op. cit. (21, above).
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25. USSR, Tsentral'noye Upravleniye Narodno-Khozyaystvennogo
Ucheta Gosplana. Trud v SSSR, statisticheskiy spravochnik
(Labor in the USSR, Statistical Handbook), Moscow, 1936,
p. 361. Eval. Doc.
26. Vvedenskiy, B.A., et al (ed.) Bol'sha a sovetskaya
entsiklopediya (The Great Soviet Encyclopedia), vol 35,
2d ed, Moscow, 1955, P. 41.
27. Uryupin, F. "Dal'neysheye razvitiye promyslovoy kooperatsii
i zadachi finansovoy sistemy" (The Further Development of
Producer Cooperatives and Tasks of the Financial System),
Finansy SSSR, no 2, 1955, P? 18-
28, Kheyfets, S. Finansy pro!~yslovoy koo eratsii (The Finances
of Producer Cooperatives), Moscow, 1955, p. 21.
29. USSR, TsSU. Sovetskaya torgovlya (1, above), p. 126.
30. Kistanov, Ya.A. Potrebitel'ska a koo eratsi a SSSR (Consumer
Cooperatives in the USSR), Moscow, 1951 351.
31.
32. CIA. ORR Project 41-1588, 23 Apr 57, The Forced Labor Camp
System in the USSR (not to be published . S.
33. CIA. ORR Project 10.1505, Soviet Military Expenditures (not
to be published). C.
34. CIA. CIA/CSM, Revision of Current Estimates of Soviet Labor
Supply on the Basis of a Theory of Higher Participation
Rates in 1950-52 (to be published). S.
35. Zverev, A.G. Zasedani a verkhovnogo soveta SSSR (Session of
the Supreme Soviet), Moscow, 1951, p. 21-
36. Soviet Economic Development, no 7, serieb 2, Dec 52, p. 16.
Planovoye khozyaystvo, no 3, 1954, p. 21. U.
37. Vestnik statistiki, no 2, 1957, P. 95-
38.
39. Lavrov, V. "Rol' finansovo-kreditnoy systemy v dal'neyshem
razvitii sel'skogo khozyaystva SSSR" (The Role of Finance-
Credit Systems-in the Farther Development of Soviet Agri-
culture), Voprosy ekonomiki, no 10, 1954, p. 18.
40. Partiynaya zhizn', no 8, 1954, p. 17.
41. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19, above),
P. 139.
42. Lavrov, 2. cit. (39, above).
43. Ibid.
44. Basyuk, T.L. Or anizatsi a sotsialistichesko o sel'sko-
khoz a stvenno o proizvodstva (The Organization of Socialist
Agricultural Production), Moscow, 1956, p. 366.
45. Bochkov, V. "Ukreplyat' denezhnoye khozyaystvo kolkhozov"
(Tighten the Money Economy of Collective Farms), Den'gi i
kredit, no 5, 1956, p. 21.
46. Ibid.
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47. Bergson, Abram, and Heyman, Hans, Jr. Soviet National Income
and Product, 1940-48, New York., 1954, p. 120. Eval. RR 3-
48. Rovinskiy, N.N. Gosudarstvenn y byudzhet SSSR 1951 (State
Budget of the USSR, 1951 , Moscow, 1951, p. 218.
49. Koval', T. "Sotsialisticheskoye sel'skoye khozyaystvo
v shestoy pyatiletke" (Socialist Agriculture in the Sixth
Five Year Plan), Voprosy ekonomiki, no 3, 1956, p? 55-
50. Kisman, N., and Slavnyy, I. Sovetskiye finansy v pyato
pyatiletke (Soviet Finances in. the Fifth Five Year Plan),
Moscow, 1956, p. 61.
51. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 279.
52. Kolychev, L. "0 khozyaystvennom raschete v MTS" (On
Business Accountability in the MTS's), Voprosy sovetskikh
finansov (Problems of Soviet Finances), Moscow, 1956,
p. 19T,-203-
53. Kisman and Slavnyy, op. cit. (50, above).
54. Golev, Ya. "Razvitiye dolgosrochnogo sel'skokhozyaystvennogo
kredita SSSR" (The Development of Long-Term Agricultural
Credit in the USSR), Finans}y SSSR, no 2, 1956, p. 58.
Eval. RR 1.
55. Lipsits, V.B. Planirovaniye sebestoimosti (Planning of Cost
of Production), Moscow, 1955, p. 99.
56. Karavayev, V.V. Sotsial'noye strakhovaniye v SSSR (Social
Insurance in the USSR), Moscow, 1955, p. 131.
57. Rabinovich, V.M. "Uroven' zarabotnoy platy rabotnikov
sovkhozov i faktory yego rosta" (The Level of Wages of State
Farm Workers and Factors of Its Growth), Vestnik moskovskogo
universiteta, no 2, 1957, p? 5-
58. Ibid.
59? USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. l 7.
60. Bakhovkina, L.N. Pravovo e regulirovaniye raspredeleniy
dokhodov v kolkhozakh (Legal Regulation for Distribution
of Incomes of Collective Farms), Moscow, 1954, p. 99.
61. Kondrashev, D.D. Tsenoobrazovani e v prom shlennosti SSSR
(Price Turnover in Soviet Industry), Moscow, 1956, p. 62.
62. USSR, Tsentral'noye Statisticheskoye Upravleniye. Chislennost'
skota v SSSR (Livestock Numbers in the USSR), Moscow, 1957,
p. 6.
63. Pravda, 13 Sep 57, p. 2.
64. Rovinskiy, op.; cit. (48, above).
65. Koval', 2. cit 49, above).
.66. Kisman and Slavnyy, op. cit. (50, above), p. 61.
67. Golev, ok. cit. (53, above, p. 54.
68. Ibid.
69. CIA. CIA/RR 150 (6, above). S.
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70. Menchinskiy, V. "Ustanovit' deystvennyy kontrol' za
raskhodovaniyem fondov zarabotnoy platy v byudzhetnykh
uchrezhdeniyakh" (To Establish Effective Control over
the Expenditure of Wage Funds in Budgetary Institutions),
Finansy SSSR, no 2, 1955, p? 33.
71. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
78. Potekhin, L., et al. Planirovaniye raskhodov na soderzhaniye
uchrezhdeniy prosveshcheniya i zdravookhraneniya (The
Planning of Expenditures for the Maintenance of Educational
and Health Institutions), Moscow, 1955, p. 86, 121, 180.
79. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 ?godu (19,
above), p. 2705.
80. Ibid.
81. CIA. ORR Project 10.1505 (33, above).
82. USSR, TsSU. Sovetskaya torgovlya (1, above), p. 131-
83. CIA. CIA/RR 77, The 1956 Soviet Budget, 7 Sep 56, p. 50-
84. CIA. CIA/RR 133 (18, above).
85. Krasnopol'skiy, A.S. "0 prirode sovetskogo gosudarstvennogo
sotsial'nogo strakhovaniya" (On the Nature of Soviet State
Social Insurance), Sovetskoye gosudarstvo i pravo, no 6,
1951, p. 65.
86. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 280.
87. Ibid.
88. Ibid.
89. CIA. ORR Project 10.1505 (33, above).
90. Kaftanov, S. Vyssheye obrazovaniye v SSSR (Higher Education
in the USSR), Moscow, 1950, p. 17.
91. Bergson and Heymann, op. cit. (47, above).
92. Plotnikov, K.N. "Sovetskiy byudzhet v goay pyatoy pyatiletki"
(The Soviet Budget in the Years of the Fifth Five Year Plan),
Voprosy ekonomiki, no 6, 1954, p. 15-
93- USSR, Tsentral'noye Statisticheskoye Upravleniye. Kul'turnoye
stroitel'stvo SSSR (Cultural Construction in the USSR),
Moscow, 1956, p. 201-202.
above), p. 33.
73. USSR, Moskovskaya Vysshaya Shkola Profdvizheniya. Finansy
professional'nykh soyuzov (12, above).
74+. Stepanov, op. cit. 13, above).
75. Gruliow, Leo ed . Current Soviet Policies II, New York,
1953, p? 93.
76. CIA. ORR Project 10.1505 (33, above).
77. Ibid.
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94. Zverev, A.G. Gosudarstvennyye zaymy i. oklady v sberegatel'nyye
kassy (The State Loan and Deposits in Savings Accounts),
Moscow, 1957,; p. 25.
95. Aleksandrov, A.M. Finansy SSSR (Finances of the USSR), Moscow,
1952, pp. 359-360.
96. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 232.
97. Pravda, 27 Ded 55.
98. Plotnikov, K.I. Ocherki istorii byudzheta sovetskogo
gosuaarstv-a (Outline History of the Budget of the Soviet
State), Moscow, 1954, p. 410.
99. Zverev, A. "Gosudarstvennyy byudzhet SSSR na 1956 god"
(The State Budget of the USSR for 1956), Planovoye khozyaystvo,
no 1, 1956, I. 16.
100. USSR, Verkhovnyy Sovet. Zasedaniya verkhovnogo soveta SSSR,
vtoraya sessiya, 6-12 marta 1951 g., stenograficheskiy
otchet Proceedings of the Supreme Soviet of the USSR,
Second Session, 6-12 March 1951,. Stenographic Report),
Moscow, 1951, p. 21. Eval. Doc. (hereafter referred to as
USSR, Verkhovnyy Sovet. Zasedaniya ... vtoraya sessiya, 1951)
101. Zverev, A. "Gosudarstvennyy byud.zhet vtorogo goda shestoy
pyatiletki" (The State Budget in the Second Year of the Sixth
Five Year Plan), Planovoye khoa stvo, no 3, 1957, p. 17.
102. Uryupin, op. cit. 27, a o
bve .
103. USSR, TsSU. Sovetskaya torgovlya (1, above).
104. Kisman and Slavnyy, op. cit. 50, above), p. 68.
105. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
-
above
25X1A106. ~
107.
USSR, TsSU. Narodnoye khozyaystvo SSSR v1956 godu (19,
above), p. 279.
108. Kisman and Slavnyy, op. cit. (50, above), p. 22.
LL
109. Ibid.
110. USSR, TsSU. Narodnoye khgzyaystvo SSSR v 1956 godu (19,
above), p. 279-
111. Ibid.
112. Plotnikov, 21. cit. (98, above), p. 389.
113. Rovinskiy, N.N. Gosudarstvennyybyudzhet SSSR, II (The State
Budget of theUSSR, II), Moscow, 1950, p. 112.
114. Ibid., p. 113.;
115. Uryupin, oa. cit.. (27, above) p. 18, 22.
116. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 279-
117. Ibid.
118. USSR, Verkhovnyy Sovet. Zasedaniya ... vtoraya sessiya, 1951
(100, above), p. 25.
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119. USSR, Verkhovnyy Sovet. Zasedaniya verkhovnogo soveta SSSR,
pervaya sessi a 12-19 iyunya 1950 g. stenograficheskiy
otchet (Proceedings of the Supreme Soviet of the USSR, First
Session, 12-19 June 1950, Stenographic Report), Moscow,
1950, p. 45. Eval. Doc. (hereafter referred to as USSR,
Verkhovnyy Sovet. Zasedaniya ... pervaya sessiya, 1950)
120. CIA. CIA/RR 133,(1 8, above). S.
121. Ostrovityanov, K.B., et al (ed.). Politichesker a ekonomi a
(Political Economy) 2d ed, Moscow, 1955, p. 562.
122. Gusakov, A., and Dymshits, I. Denezhnoye obrashcheniye i
kredit SSSR (Money Formation and Credit in the USSR),
Moscow, 1955, p. 183.
123. Usoskin, M.M. Or anizatsi a i planirovani e kratkosrochnogo
kredita (Organization and Planning of Short Term Credit),
Moscow, 1956, p. loo.
124. Atlas, M. Kreditnaya reformer v SSSR (Credit Reform in the
25X1A USSR), Moscow, 1952, p. 199.
125. CIA. CIA/RR 133 (18, above). S.
126.
127. Pravda, 27 Dec 55-
128. Kisman and Slavnyy, op. cit. (50, above), p. 68.
129. Yunik, I. Kreditovaniye i finansirovaniye zhilishnogo i
kommunal'nogo khozyaystva SSSR (Credit and Financing of
Housing in the Communal Economy of the USSR), Moscow,
1955, p. 50-51.
CIA. CIA/RR 92 (7, above), p. 30. C.
130. Yurupin, S. "Zadachi finansovykh organov v rabote po
gosdokhodam" (Tasks of Financial Organs in Work of State
Revenues), Finansy i kredit, no 3, 1954, p. 14.
131. CIA. CIA/RR 133 1 , above . S.
132. Ibid.
133. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 279.
134. Zverev, op. cit. (9i, above), p. 38.
135. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 279.
136. USSR, Verkhovnyy Sovet. Zasedaniya ... pervaya sessiya,
1950 (119, above), p. 57.
137. Zverev, A. "Gosudarstvennyy byudzhet chetvertogo goda
poslevoyennoy stalinskoy pyatiletki" (The State Budget
in the Fourth Year of the Postwar Stalin Five Year Plan),
25X1A Planovoye khozyaystvo, no 2, 1949, p. 40-41. Eval. RR 1.
138. Ibid.
139.
140. CIA. ORR Project 10.1505 (33, above).
141. CIA. CIA/RR RA 15, 1950 Ruble-Dollar Price Ratios for Goods
and Services in the USSR and the US, 1 Aug 57. S.
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142. USSR, TsSU. Sovetskaya for ovlya (1, above), p. 51-
143- CIA. ORR Project 10.1505 33,above).
144. USSR, TsSU. Sovetskaya for ovlya (1, above), p. 44.
145. CIA. ORR Project 10.1505 (33, above).
146. CIA. ORR Project 14.1548, Growth of Gross Value of Production
and Net Value of Production and Net Value of Output in USSR
Industry, 1950-1955 (to be published). OFF USE.
147. Pravda, 27 Apr 54.
148. Sakov, M. "Puti snizheniya sebestoimosti produktsii"
(Ways of Lowering Costs of Production), Den'gi i kredit, no 7,
1956, p. 29.
149. "Znacheniye snizheniya sebestoimosti promyshlennoy produktsii"
(The Significance of Lowering Costs of Industrial Production),
Partiynaya zhizn', no 12, 1956, p. 47.
150. USSR, TsSU. Narodnoye khozyayst;vo SSSR v 1956 godu (19,
above), p. 93-
151. Zverev, ok. cit. (101, above), p. 27-
152. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 183.
153. Shass, M.E. Snizheniye sebestoimosti stroitel'nvkh rabot
(Lowering the'Cost of Construction Work), Moscow, 1956,
p. 29, 45-
154. Ibid.
155. Ibid.
156. CIA. CIA/RR 133 (18, above). S.
157. Lebedev, Ye.P. Transportnaya statistika (Transport Statistics),
Moscow, 1953, P. 30.5?
158. Orlov, V.N., and Chudov, A.S. Kal.'kulyatsiya i analiz
sebestoimosti:zheleznodorozhny1h perevozok (Calculation and
Analysis of Sebestoimost' of Railway Carriage), Moscow, 1952,
p. 37.
159. Kolomoytsev, V.P. Sebestoimost" morskikh erevozok chast' 1
(Sebestoimost' of Maritime Carriage, Part 1), Moscow, 1,956,
p. 35-3?
160. Ibid.
161. USSR, Tsentral'noye Statisticheskoye Upravleniye. Transport
i svyazy (Transport and Communications), Moscow, 1957.
hereafter referred to as USSR, TsSU. Transport i svyazy)
162. Blank, Sh.P. Sebestoimost' rechnykh perevozok Sebestoimost'
of River Carriage , Leningrad, 1956, p. 2b-34.
163. Bash, M. "Sebestoimost' perevozok gruzov avtotransportom
obshchego pol'zovaniya i vedomstvennym" (Sebestoimost' of
Transporting of Freight; by Truck of General and Departmental
Use), Avtomobil'nyy transport, no 3, 1957, P? 7.
-.154-
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164. Ivliyev, I. "Khozyaystvennyy raschet na zheleznodorozhnom
transporte" (Ctst Accounting in Railroad Transport),
Voprosy ekonomiki, no 10, 1956, p. 39, 40.
165. CIA. FDD Translation no 00-U 3,054, 657 of Buziniyev,
M.I., 0 lata truda rabotnikov sluzhby signalizatsii
s azi Payment of Labor of Workers in Signal Communica-
tions).
166. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 190.
167. Kaplan, A.I. Balans predpriyatiya svyazi i yego analiz
(The Balance of the Communications Enterprise and Its
Analysis), Moscow, 1955, p. 27-
168. CIA. FDD Summary no 864, 21 Mar 56, Transportation, Com-
munications, Electric Power, and Construction in the USSR
No. 20 , p. 52. OFF USE.
169. USSR, TsSU. Transport i sv az SSSR (161, above), p. 216.
170. USSR, TsSU. Sovetskaya torgovlya 1, above), p. 120.
171. Ibid., p. 117.
172. Gatovskiy, L.M. (ed.). Izderzhki obrashcheniya v SSSR i
puti ikh snizheniya (Circulation Expenses in the USSR
and Ways of Reducing Them), Moscow, 1955, p. 442.
173. USSR, TsSU. Sovetskaya torgovlya (1, above), p. 20.
174. Gatovskiy, oE. cit. (172, above), p. 35-
175- Ibid.
176. Lifits, op. cit. (2, above), p. 415-
177. Gatovskiy, 2T. -Sit. (172, above).
178. Ibid,
179. Ibid.
180. USSR, TsSU. Sovetskaya torgovlya (1, above), p. 126.
181. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 2705.
182. Voshchinskiy, G.V. Bukhgalterskiy uchet v sel'skokhozyayst-
venn kh predpriyatiyakh (Accounting in Agricultural Enter-
prises), Moscow, 1956, p. 179-
183. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 1 0.
184. Golev, op. cit. (54, above), p. 57.
185. Basyuk, op. cit. (44, above), p. 277.
186. Pravda, 25 Jan 58, p. 2.
187. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 1 0.
188. Pravda, 25 Jan 58, p. 2.
189. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 1705.
190. Moiseyev, M. "Korennyye preobrazovaniya material'noy i
kul'turnoy zhizni sovetskogo krest'yanstva" (Radical
Reorganization of the Material and Cultural Life of the
Soviet Peasant), Voprosy ekonomiki, no 10, 1957, p? 93.
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191. USSR, Ministerstvo Yustitsii. Sbornik rukovodyashchikh
materialov po kolkhoznomu stroitel'stvu (Handbook of
Guidance Materials for Collective Farm Construction),
Moscow, 1918, p. 75??89.
192. Chuvikov, V. "Povysheniye material'noy zainteresovannosti"
(The Rise in Material Interest), Sotsialisticheskoye
sel'skoye kh)zyaystvo, no 4, 1956, p. 19.
193. Volkov, A.I Pravovoye pol-ozheniya kolkhoznykh fondov
(The Legal Position of Collective Farm Funds), Moscow,
'1955, p. 56-57.
194. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 1 O.
195. Pravda, 25 Jan 58, p. 2.
196. Bochkov, ok. cit. (]+Gi, above), p. 22.
197. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 1 -0.
198. Ibid.
199. USSR, TsSU. Sovetskaya torgovlya (1, above), p. 179.
200. Gogol', B.I., et al (ed..). +0 let sovetskoy torgovli
(Forty Years of Soviet Trade), Moscow, 1957, p. 188.
201. USSR, TsSU.. Sovetskaya torgovlya (1., above), p. 188.
202. Kisman and Slavnyy, op.cit. 50, ab ove).
203. Ibid.
204. USSR, Tsentral'noye Statisticheskoye Upravleniye.
Dostizheniya sovetskyvlasti za sorok let v tsifrakh
(Achievements of Soviet Power for Forty Years in Figures)
Moscow, 1957, p. 155. Eval. Doc. (hereafter referred to
as USSR, TsSU. Dostizheniya sovetskoy vlasti za sorok let)
205. Kisman and Slavnyy, op. cit. (5O, above).
206. USSR, TsSU. Dostizheniya sovetskoy vlasti za sorok let
(2o4, above).
207. Chuikov, B. "Kolkhoznyy stroy, veli.chaysheye zavoyevaniye
oktyabrya"(Collective Farming, the Greatest Conquest of
the Great October Socialist Revolution), Ekonomika sel'skogo
khozyaystva, no 7, 1.957, p. 32.
208. USSR, TsSU. Dostizheniya sovetskoy vlasti za sorok let
(204, above)
209. Burmistrov, D.V. (ed.). Spravochnik zalo ovogo rabotnika
(Reference; Book for the Tax Worker), Moscow, 1954, p. 190-191.
210. Pravda, 25 Oct 53?
211. OEEC. A Standardized System of National Accounts, Paris,
1952, P. 5d
UN, Secretariat. A System of National Accounts and Support-
ing Tables,; New York, 1953, P.8
Commerce, Office of Business Economics. National Income,
2 iXdition, Washington, 1954, p. 46, 84.
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25X1 C
212. Ibid.
213. Bergson, Abram. Soviet National Income and Product in 1937,
New York, 1953, p. 105.
Bergson and Heymann, op. cit. (47, above), p. 121.
CIA. CIA/RR 90, Soviet National Accounts in Current Rubles
for 1953, 28 Feb 57, p. 59. S-
214. CIA. CIA/RR 55, Construction of Soviet Gross National Prod-
uct Accounts for 195a-5, 19 Jan 55, p? 7S.
215.
216. USSR, TsSU. Sovetskaya torgovlya (1, atLove),
217. Ibid., p. 188.
218. Ibid., p. 179.
219. Ibid., p. 180.
220. CIA. ORR Project 20.1529, Policies, Performance, and
Prospects of Soviet Agriculture (to be published). S.
221. Ibid.
222. Slatin, I.M. Za otovki i zakupki sel'skokhoz a stvennykh
produktov v SSSR (Deliveries and Purchases of Agricultural
Products in the USSR), Moscow, 1956, p. 12.
223. Pravda, 30 Jan 56, p. 2.
22l-. Izvestiya, 14 Oct 56, p. 1.
225. Ibid.
226. USSR, TsSU. Sovetskaya torgovlya (1, above), p. 185-
227. Ibid., p. 180.
USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 257.
228. Alekseyev, L.Z. "Kartofelevodstvo -- krupnaya otrasl'
sotsialisticheskogo sel'skogo khozyaystva" (Potato Growing,
An Important Area of Socialist Agriculture), Kartofel',
no 5, 1957, p. 5.
229. Ibid.
230. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 113.
231. Ibid.
232. CIA. ORR Project 20.1529 (220, above). S.
233. Vestnik statistiki, no 6, 1957, p. 78.
234. USSR, TsSU. Sovetskaya torgovlya (1, above), p. 185-
235. Ibid., p. 180.
USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 237.
236. USSR, TsSU. Narodnoye knozyaystvo SSSR v 1956 godu (19,
above), p. 113-
237- USSR. Sel'skoye khozyaystvo v shestoy pyatiletke (Agri-
culture in the Sixth Five Year Plan), Moscow, 1957, p. 133-
238. Pravda, 25 Apr 56, p. 2.
25X1 A 239
25X1 C6001
25X1A
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240. USSR. Sel'skokhozyaystvennaya entsiklopediya, vol III,
Moscow, 1953, p. 446.
241. Vestnik statistiki, op. cit. (233, above).
242. USSR, TsSU. Sovetskaya torgovlya (1, above), p. 185.
243. Ibid.
244. USSR, TsSU. iNarodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 107-
245. Lutikov, I.E. "Mastichnyye kul'tury v SSSR" (Oilseed
25)(1A Crops in the USSR), Zemledelive. no 11, 1957, p. 48.
above), p. 107.
249. Sovetskaya Belorussiya, 11 Ap:r 57, p. 1.
STATS P E
251.
Vestnik statistiki, no 6, 1957, P. 78.
252.
Izvestiya, Jun 57, p. 1.
253.
USSR, TsSU. Narodnoye_khozyaystvo v 1956 godu (19,
above), p. 219.
254.
Ibid., p. 107-
255.
USSR, Tsentral'noye Statisticheskoye Upravleniye.
Promyshlennost' SSSR (Industry of the USSR), Moscow,
1957, p. 37~-
256.
USSR, TsSU. Sovetskaya torgovlya (l, above), p. 185.
257.
Ibid.
USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 237.
258.
USSR, TsSU. Dostizheniya sovetskoy vlasti za sorok let
(204, above), p. 181.
259.
"Naladit'sya'torgovykh predpr:iyatiy s kolkhozami" (To
Adjust
Farms),
the Relations of Trade Enterprises with Collective
Sovetskaya torgovlya, no 2, 1957, p? 57.
260.
Vestnik
statistiki, op. cit. (233, above).
261.
USSR, TsSU. Sovetskaya torgovlya (1, above), p. 185.
262.
Ibid., p. 180.
USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 237.
263.
USSR, TsSU. Dostizheniya sovetskoyvlasti za sorok let
(204, above).
264.
Vestnik statistiki, op. cit. (233, above).
265.
USSR, TsSU. Dostizheniya sovetskoy vlasti za sorok let
(204, above).
266.
Vestnik statistiki, op. cit. (233, above).
267.
USSR, TsSU. Sovetskaya torgovlya (1, above), p. 185.
268.
Ibid., p. 180.
-158-?
246.
247. Vestnik statistiki, op. cit. (233, above).
248. USSR, TsSU. Narodnoyekhozyaystvo SSSR v 1956 godu (19,
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25X1A
269.
270.
271. Coogan, James. "Bread and the Soviet Fiscal System, The
Review of Economics and Statistics, vol XXXV, no 2, May 53,
p. 164.
272. Kastorin, A.A. "Ekonomika l'novodnykh kolkhozov" (The
Economy of Flax Collective Farms), Voprosy ekonomiki
sel'skogo khozyaystva (Problems of the Economics of Agri-
culture), Lenizdat, 1956, p. 187, 195-
273- USSR, TsSU. Sovetskaya torgovlya (1, above), p. 179.
274. Ibid.
275. Ibid., p. 134.
276. Ibid., p. 182.
USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 237-
277. USSR, TsSU. Sovetskaya torgovlya (1, above), p. 25-
279. Ibid., p. 124.
279. Ibid., p. 117.
280. Ibid., p. 125.
281. Ibid., p. 52.
282. Gatovskiy, op. cit. (172, above), p. 72-73-
283. Lasevich, G.M., and Karelov, A.G. Tor ov e skidki po
prodovol'stvennyye i promyshlennyye tovary (Trade Discounts
for Food and Industrial Goods), Moscow, 1954, p? 54-61.
284. CIA. CIA/RR 92 (7, above), p. 36. C.
285. Ibid., p. 46.
286. Ibid., p. 8, 73-
287. Ibid., p. 30.
288. Mirolyubov, P. Kreditovaniye individual'nogo zhilishchnogo
stroitel'stva rabotnikov MTS i sovkhozov The Credits of
Individual Housing Construction of Workers of MTS and State
Farms), Moscow, 1954, p. 5.
289. Koryunov, S. "Denezhnyye dokhody i nedelimyye fondy
kolkhozov" (Money Income and the Indivisible Funds of
Collective Farms), Finansy SSSR, no 7, 1955, p? 53-54.
290. Pravda, 14 Jun 50-
291. Ibid.
292. Zverev, A. "Gosudarstvennyy byudzhet zavershayushchego
goda poslevoyennoy stalinskoy pyatiletki" (State Budget
of the Last Year of the Postwar Stalin Five Year Plan),
Planovoye khoz a stvo, no 4, 1950, p. 11.
Plotnikov, op. cit. 98, above).
293. USSR, Verkhovnyy Sovet. Zasedaniya ... pervaya sessiya,
1950 (119, above), p. 44.
Kisman and Slavnyy, op. cit. (50, above), p. 60.
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294. Zverev, op. cit. (292, above).
Plotnikov, op. cit. (98, above).
295. Plotnikov, op. cit. (98, above), p. 388.
296. Zverev, op. eit.-(292, above), p. 19-20.
297. CIA. ORR Project 14.1889, Investments in Selective Soviet
Economic Sectors (not to be published). OFF USE.
298. Kisman and Slavnyy, op. cit. (50, above), p. 60.
299. Kondrashev, op., cit. (6i, above).
300. Kisman and Slavnyy, op. cit. (50, above), p. 60.
301. Golev, op. cit. (53, above , p. 54-63-
302. Ostrovityanovr, op. cit. (121,. above), p. 508.
303. Ibid.
Ostrovityanov, K.B., et al (ed.). Politicheskaya ekonomiya
(Political Economy), Moscow, 1954, p. 487-488.
304. Golev, op. cit. (53, above), p. 54-63.
305. Ibid.
306. Ibid.
307. Ostrovityanov, op. cit. (303, above).
308. Golev, op. c t.753, above), p. 54-63.
309. Ibid.
310. Ibid.
311. Ibid.
312. Ibid.
313. Narodnoye khozyaystvo (National Economy), Moscow, 1947,
p. 414-416.
314. USSR, TsSU. Narodnoye khozyaystvo SSSR v 1956 godu (19,
above), p. 173-175.
315. CIA. ORR Project 14.1889 (297, above).
316. Bulletins on Soviet Economic Development, bulletin 3,
Aug 50, p. 19. 317. Defense. Annual Reports of Status of Funds, Military
Functions.
318. Pravda, 21 Feb 56.
319. "Resheniya dekabr'skogo plenuma TsK KPSS i zadachi
uluchsheniya planirovaniya narodnogo khozyaystva" (The
Decision of the December Plenum of the Central Committee
of KPSS and the Tasks of Increasing the Planning of the
National Economy), Planovoye khozyaystvo, no 1, 1957, p. 5-
320. Trull, 25 Apr 56.
321. Maslakov, V.P., et al. Finansirovaniye zhilishchno-
khozyaystva (The Financing of Housing , Moscow, 1951, p. 7.
322. Zverev, A. "Byadzhet mirogo khozyaystvennogo i kul'turnogo
stroitel'stva" (A Budget of Peace, of Economy, and of
Cultural Construction), Planovoye khozyaystvo, no 2, 1951,
p. 30.
323. Zverev, op. cit. (138, above), p. 41.
324. Plotnikov, op;. cit. (98, above), p. 388.
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325.
Golev, 21. cit. (53, above), p. 54-63-
326.
Zverev, 22. cit. (321, above), p. 30.
327
Akademiya Nauk, Institut Ekonomiki. Ekonomika
USSR
.
,
romyshlennosti SSSR (The Economics of Industry of
the USSR), Moscow, 1956, p. 235-
328.
Vinnichenko, N.T. Finansy zhelezhnykh dorog (Financing
Railroads), Moscow, 1952, p. .
329.
Rovinskiy, off. cit. (48, above).
330.
Shavrin, V. Gosudarstvenn b dzhet SSSR, 1953 (The
Soviet State Budget, 1953), Moscow, 1953, p? 107-
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