'A
secret
!
86
Copy No.
issemination Authorised Assistant Director Office of Current Intelligence
THE6 SOVIET BUDGET
Office of Reaearch and Report* CENTRAL INTELLIGENCE AGENCY
Thia document contains information within the meaning ofSllfiSlat Congreaa.
secret
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FOREWORD
The Soviet budget is the basic financial plan of the economy and reflects the government's resource allocation policy. In addition, the presentation of the budget often serves as an occasion forof current propaganda themes, such as the reduction in military expenditures claimed in6 budget.
In the budget, as In other Soviet statistical presentations, the data are almost certainly not falsified, but they are subject to manipulation and omissions which mayisleading effect. Thus the coverage of given budget categories may change from year to year, and entries may be added or eliminated without specific references to these changes in the budget presentation. Plan figures, but not actual results, are often announced for different revenues and expenditures. For various reasons, figurespecific entry may be released one year but not tho next. Finally, many important expenditures are financed from extrabudgetary -sources. To assess the course of Soviet economic policy asin the budget, therefore, it is necessary toareful study both of the budget speech and of related information from other sources.
- iii -
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CONTENTS
:
SumiTiary and Conclusions
I,
Entries
Tax
Tax
on Population and State
Taxation on
State
Sources of
Social msurance.
Machine Tractor Station Revenue
.3. Customs and
in
of Revenues .
Surplus..
Expenditures
A. Financing the National
1. Allocations by Sector
Z. Allocations by End
* B. Social-Cultural
ii Health and Physical
. .
:<. 1. Explicit Defense Expenditures
Defense
Security
Expenditure*
of Expenditure! . .
IV, Budgets of the Union Republics . .
Appendix
Source References
Tables
Soviet Budget.
Distribution of Profits and Sources of Profits Taxes
of Soviet State
Profits of Soviet State Enterprises, by Sector,
.
Distribution of Profits of Soviet State Enter-
6
Budget Revenues. Expenditures, and Surplus,
Soviet Budget .
Sources of Soviet Planned Allocations for Financing
the National Economy. Fixed Investment, andof Working
the National Economy of the USSR: Distribu-
tion of Funds by Sector and .
Budget Allocations to5
6
the National Economy of the USSR: Distribu-
tion of Funds by End
Soviet Industry: Distribution of Funds
by End ..
State Capital
- vi
Money Investment in .
State Bank Credit,
in Working Capital of Soviet Enterprises,
Planned Budget Allocations for Education,
6
Soviot Allocations for Scientific Research, ,
Soviot Planned Budget Allocations for Social Welfare.
6 - - -
43
43
7
49
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/
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(ORRA)
THE 6 SOVIET BUDGET*
Summary and Conclusions
6 Soviet budget ie designed to execute current Soviet economic policies by restricting consumption, by promotinggrowth throiigb the development of heavy industry, and byigh level of military capability, oriented increasingly toward nbncbnventional weapons.Analysis of6 budget is complicated, and comparisons with earlier years are rendered difficult, by price changes5 and by the exclusion from6 budget ofntries which appeared in preceding budgets. Both revenues and expenditures are planned toercent over the5 level, the surplus remaining
The Increase in revenues is to come from the turnover tax and the profits tax, .the two principal revenues. Consumer purchasing power will be limited by the increase in turnover tax collections, maintenance of the spring mass loan at the5 level (which was doublend omission again6eneral retail price cut which was announced each spring8
to
Half of the increase in expenditures5 is attributable to increased appropriations for Social-Cultural Measures (Education, Health and Physical Culture, and Sociallthoughfor Financing the National Economy are to rise only slightly above5 level, fixed Investment is planned to increase If percent. Heavy Industry receivingercent of total investment. Allocations to Agriculture remain at the5 level despite the completion of part of the'"new lands" program. In the unspecified residual in' Financing the National Economy, there has been aincrease which cannot be fully explained on the basis of available information.
* The estimates and conclusions contained in this report represent the best judgment of ORR as of
Explicit defense expendituress announced in6 budget spfyech inreercent less than5 expenditures. When allowance is made for pricelaimed cut5n the armed forces, and savings from mass production of military end items, however, it appears that the
6 allocation could finance the same amount of military procurement asr possibly more. urther reduction in forceillion men, announced ons carried out as scheduled,6 defense expenditures should bebelow planned expenditures.
I.
Analysis of6 Soviet budget is complicated by-two factors which make comparison with earlier years difficult. The first of these is the disappearance of the fictitious Revenue and Expenditure entries which appeared in the budget. .The second is the impact upon budget revenues and expenditures, both5 andf the Soviet wholesale price reductionBecause an understanding of these changesrerequisite to anppraisal of6 Soviet budget, they.are discussed brieflyhis introductory section.
A. Fictitious
Two fictitious entries appeared in the Soviet budget.see. One was an entry for Retail Price Re due r, tions, which amounted2 billion rubles3illion rubles The other was called Raising AgriculturalPrices and amountedillion rubles4illion rubles Both of these entries referred to turnover taxes foregone. Because the turnover tax is in essence the difference between the price received by the producer and the price received y the trading organization, less trade costs, when retail prices were reduced34orresponding reduction inroducer prices, the effect was'to reduce turnover taximilarly, turnover tax receipts declined when state agric'ultural procurement prices were raised3orrespondingrease in retail prices. Fictitious entries representing the loss in . urnover tax from retail price reductions and/or increases inultural procurement prices appeared in both Revenues anditures. They2 billion rubles0 billion rublesillion rubles5 and had the effect of emphasizing to the Soviet public the measures taken during the "new bourse" program to increase consumption and stimulate agriculture and of .showing an impressive growth in the state budget.
*espectively, below.
Neither of these fictitious entries.is listed in6 budTet. Although Raising Agricultural Procurement Prices wasin the5 budget, it appears that it was excluded from the budget fulfillment report In both Revenues and Expenditures, the difference between the planned and5 totals is equal to the net change in the major items plusillion rubles, the amount listed for Raising AgriculturalPrices. Thus in contrasting the6 and the actual
oviet budgets with earlier budgets, only real revenues andshould be considered. The apparent omission of fictitious entries largely explains why5 revenues and expenditures are below plan figures and why6 revenues and expenditure: showmall increase overrevenuee.
The second factor Which must be considered In analyzing6 budget and also budget results5 is the reduction inwholesale prices which oocurred In the USSRhe price cut affected fuel, ferrous and nonferrous metals, machinery and equipment, chemicals, construction materials, freight rates, and rates for electric and fuel energy. If* The magnitude of the price ra-duction'is notTknowq, but it appears from scattered evidence f
B. Price Changes.
in Soviet journals that it may range fromoercent. II
Investmentshe first year of the Sixth Five Yearre also expressed in different terms fromin the preceding years. Investment planning prices during the Sixth Five Yesr Plan will be those Introducedhereas investments during the Fifth Five Yearere expressed in prices The new investment planning prices are estimated to be aboutercent below those of the Fifth Five Yesr Plan. 3f
rCe^ Appendix.
Therice reduction affected both budget revenues and budget expenditures. On the revenue side, it contributed to both the increase in turnover taxes and the fall in profits taxes from the plan On the expenditure slds, allocations for Financing the National Economy expressed in the new prices are fromess than the same allocations expressed in prices prevailing before5 reduction (see Table Other items ofwere not given in both sets of prices, and it is not possible, from the scattered pries data available, to adjust all budget figures to constant rubles. Therefore, in comparing5 and6 revenues and expenditures with those in the5 and earlier budgets, it is important to make allowance for price This consideration is especially significant in comparing important entries such as military expenditures, for which no figures adjusted for pries changes aren the following analysis of budget revenues and expenditures, reference is frequently made to the impact of the price cut5 upon individual revenuea and expenditures.
TotaL revenues in tbe Soviet budget are plannedillion ublesn increase2 billionercent over5 revenues. Tablehows planned and actual revenuesnd planned revenues Although5 revenuesillion rubles are lower than5 revenuesillion rubles, the revenue plan was reported overfulfilled. According to6 budget speech,ctual revenuesercent of plan. illlon-ruble difference between planned and actual revenues appears to have been caused not only by the effects of5 wholesale price cut but also by the apparentfrom actual revenue ofillion-ruble entry Raising Agricultural Procurement Prices. Actual receipts of the two main revenues, turnover tax and profits tax, are known. The actualtaxillion rubles above plan, whereas the profits tax4 billion rubles below plan. Taken together, these two sources, which account for almost two-thirds of all revenue,illion rubles less than planned. The difference between totalillion rubles) and that attributable to the twoillion rubles)illion rubles. It is highly unlikely that minor revenues, which are both easier to plan accurately and less influenced by price changes, could have fallen enough to absorb the difference. If they had, the revenue plan certainly would not have been met. Therefore,et variation ofillion rubles between planned and actual receipts from other revenues, it appears that exclusion of the entry Raising Agricultural Procurement Prices is primarily responsible for the difference between planned and5 revenues. No fictitious entries have been listed in The turnover tax remains the principal revenue, with its share of the total rising fromercent5 (actual) toercent The planned share of the profits tax in total revenues6 isercent, the same as in5 revenues. esult of the reduction in heavy industry profits caused by theprice cut, profits taxes6 are plannedercent more than5 collections butercent below the5 level. It is estimated that state-loan revenues are plannedlightly lower level thanut this is explainedore ealistic budget estimate6 than5 of the Increase in savings deposits, which are invested in the State Loans. No important change has occurred In other revenues.
A. Turnover Tax.
ollows on p. 5.
The Soviet turnover taxax levied primarily on consumer goods. It represents, essentially, the difference between the price received by the producer and the price received by the tradingwith an allowance for processing and transport costs. It is the most important single source of budget revenue, accounting forercent of total revenueore than twice the share of the next most Important revenue, the profits tax paid by state enterprises.
Soviet Budget
BUUoo Current Rubles
5/* S/ Actual g/ Plan f7 Actual Plan ff/ Actual V
Soviet BudgetContinued)
t
8
h
tate loans Include loan purchases (l) by the population in the annual mass loany the population at savings .bants during they savings banks Investing their deposits; andby the state comnercial Insurance organization Investing part of its reserves. Figures for itemsre given in budget messages and the Soviet press. The figure fors estimatedillion rubles per year, from loan service schedules published In the ;Sovlethe figure for item (k) is estimatedillion rubles per year,he basis of previous* k. All figures in parentheses are estimates.
Machine Tractor Station (MIS) Revenue is estimated on the basis of MTS activity and the level of procurementwhichWS income-in-kind is.valued* .
Changes in the level of turnover tax receipts result from changes in the. volume of trade turnover subjected to the tax and from changes in either retail or producer prices affecting the spread between them. Thus rising trade turnover expands tax collections,eduction in retail prices or an increase in producer prices reduces tax collections. Variations in the level of turnover tax receipts in Tableepresent the net effect of these two forces.urnover tax collections declined below2 levelpercent increase In trade turnovereduction in retail prices and an increase in agricultural procurement prices occurred These price changes were both made at the expense of the turnover tax. rade turnover rose byercent above3ombination ofprice reductions and agricultural price increases again more than offset the effects of Increased sales of consumer goods and pulled turnover taxes downercent below3 level. n the other hand, no further price changes were apparently considered in estimating turnover tax receipts, which were planned to increaseillion rubles, orercent. This planned increase corresponds to what was probably the planned Increase in tradebecause the actual increase in trade turnoverercent5 was reported as exceeding the plan. IBJ
Actual turnover tax collectionsillion rubles, moreercent aboveifference betweenercent increase inercent increase in turnover tax collections canlargely to5 wholesale price reduction. price cut affected primarily the costs and selling pricesindustry, some goods, particularly Con Burner durables,sold at retail prices and were subject to the turnoveralso affected. The prices received by producers werethe price cut, but there was no corresponding reduction intd the public. The increase in the margin betweenretail prices resulting from the price cut, therefore, wentturnover tax payments to the budget. This isthe following-containing in-
structions to consumer
' Commercial retail prices are being retained at the price level-effective5 on those household consumer goods earmarked forsale to the public and to collective farms, for
which, asuly, wholesale prices were ', changed. '
* P.bove.
gricultural machines,lectric motors, separators, and other equipment and materials, for which there axe no price-list retail prices, are beingby industrial enterprises to consumer cooperative organisations at the new wholesale prices with the addition of the difference between
old and new wholesaleThis difference, will
be paid into, the .budget by the. -
Trade markups are added to the sum of the new wholesale prices plus the budgetary. .-
urther increase In turnover tax collectionspercent is planned. The trade plan6 has notbut it appears unlikely that all of .the incresssfrom the growth of trade turnover. It may be suggestedturnover6 will Increaseercent, theercent, the compound averagerequired to meet the Sixth Five Year Plan goalpercentover5 level The remainingturnover tax, not attributable to the growth of trade turnover,come from price changes. Because5 wholesale price.came st midyear, it affected only half of.the year's turn-taxome of the Increase in turnover taxill therefore,reflect the applicationhe new. lowerpricesmonth period. In addition, however,in retail prices or reductions in agriculturalmay be plannedlthough no significantbeen reported.
B. Prof as Tax.
The Soviet profits tax consists of deductions from the profits of state enterprises which are paid Into the budget and also of theto the budget by enterprises of surplus working capital. Ittaxes on the income of collective farms and producer andcooperatives, which are listed under Taxes on Enterprises and Organizations. The profits retained by state enterprises, approx mately one-fourth of total profits, are devoted to increasing working capital, financing fixed investment, and various minor uses.
Tablehows the distribution of planned profitss well ss the sources of planned Actual profits5illion rubles,ubles below5 plan. This difference is in partunderfulflllmsnt of profit plans which occurred inut appears to be primarily sttrlbutablo torice cut, which apparently reduced the prices of the outputindustry more than the prices of its inputs, thusinfeeavy industry. Although actual profit data bynot been releasedhe effect upon profits of theprice reduction is indicated in* inxpressed in5 prices6 figures in the hows the plsnnsd profits of state enterprises, Profits are to increase6 in all sectors exceptwhere profits are planned to beercent below the
;
*ollows on,
ollows on
TOP SECRET
Table 2
Distribution of Profit* and Sources of Profits Taxes of Soviet State
Billion Current Rubles
Item
y
S/
1/
of profits
to budget
5
profits
5
of profits.taxes
from profits
of surplus work-
capital
5.3
A.
profits taxes
i
1 -
1
-.
f
,
Tablehows the planned distribution of profits of state snterprises6 by sector and use. Of total profits,ercent will be paid into theercent will be devoted to the sxpanslon of working capital, andercent will be used for capital investment. Aboutercent will be allocated to the Enterprise Fund (formerly called tha Director'shlch,dapendlng upon the industry, rs'-csivssercent of planned profit and fromoercent of above-plan profit. The resource* of this fund are spent for the introduction oftechnology, modernisation of existing equipment, expansiontand repair of housing, construction and maintenance ofand social facilities, provision of passes to sanatorlums snd resthomes, and payment of individual Theercent of profits is to be dsvotsdariety of activities,the financing of geological survsy work and scientific resssrch and sxpsnditures for housing and municipal services. "
ollows on
Table 1.
Planned Distribution of profits of Soviet State Enterprises6
Billion Current Rubles
its retained profits fromillion rubles5 toillion rublesbe other sectors of the economy will beto retain approximately the same amount of profits6 as
Two changes in budget accounting occurred5 which raised the level of profits taxes, and one of these will continue The first change concerns the saving in capital repair out-lays5 attributable to the midyear price cut.
* " amortiaation allowancest capitalbut not requiredesult of the price cut were paidinto 1budget as profits The second change, which5 and will continue on an expanded scalerelates to the administrative level at which deductions fromare paid into the budget. The customary procedure inministries is for profits to be balanced against losseshief directorate, which then remits net profits to the budget,authority was often used by chief directorates to maketransfers of the profits of efficient enterprises toworking capital of inefficientIt5 to begin the remittance of profits directly by,into the5 this procedurein the Ministries of the Automobile Industry, ofAgricultural Machine Building, and of thehe procedure was extended to the Ministries ofInstruments Building, Paper and Wood-Processing,and Construction of Petroleum Industry Enterprises'.the ministries of finance of the union republicsto apply this system to republicof this change will be to increase the amount of profitsby these ministries, all of which are in heavythia source of funds removed from the control of chiefhowever, the needs of enterprises in financialhave to be met directly from the budget or from banknew profits tax procedure thus will tighten centralized controlthe financial condition and operations of enterprises inaffected.
C. Taxation on Population and State, Loans.
1. Taxation on Population.
Direct taxation of the population consists primarily of the incomfc tax on the agricultural and nonagricultural population. 6 these taxesormal increase reflecting the growth in the labor force and in taxable incomes. 3opulation taxes fell becauseeduction in agriculturalQtopulation taxes had returned toevel, and they are planned atillion rubles
The revenue from state loans6 Is estimated Co be planned at approximatelyillion rubles. This revenuethe proceeds of the annual spring mass loan drive, additional purchases of bonds by the population at savings banks during the year, investment in state debt of the deposits of the savings banks, and investment of the free reserves of the state insurance organization.
The spring loan was announced in6 budget speech2 billion rubles, slightly above5 goalillion rubles, which was expected to elicit an average subscriptioneeks' wsges per5 loan was oversubscribed byillionnd It is likely thst6 goal will be oversubscribedimilar amount. The other major source of state loans revenue is the increase in the deposits of the savings banks, which in planned6illion rubles, the same amount as the actual increasen increase ofillion rubles was plannedut this plan apparently did not take cognizance of the smaller amount of funds left for voluntary saving after the spring mass loan was increased Ssvings deposits grew by overillion rubles3hen the spring msss loan was onlyillion rubles, but they rose byillion rubleshen the mass loan was increasedillion rubles. The estimate in6 budgetillion-ruble increase in savings deposits isore accurate estimate of the increase to be expected when the spring mass loan is set at overillion rubles. In addition to the two major sources of state'loans revenue, bond purchases by the population at savings banks and by tho stale insurance organization are estimated atillion rubles, bringing total planned stats loans revenue toillion rubles. Expected overfulfillmeht of the spring msss loan should raiae the total to several billion rubles more than the estimated5 loan revenues ofillion rubles. D. Secondary Sources of Revenue.
Secondary sources of revenue include tho budget categories Social Insurance Funds, MTS Revenue, income Tsxea on Enterprises and Organisatlona (such as collective (arms and producerustoms and Reparations, savings fromin Administration, and Collections and Miscellaneous Nontax Revenue. Complete informstion on the size of those revenues Is not availablendew entries can be accurately oatimated.owsvor, theae revennea will probably provide to the budget6 approximately tho asme amount of funda aa
1. Social Insurance Funds.
Social insurance funds represent compulsory socialpayments by enterprises to tho budget of fromoercent of their wage bill, depending on thensurance of property ia handled outside the budget by the state ineuranceof the Ministry of Finance. Social insurance expenditures are included under Social-Cultural Measures.
-
Tractor Station Revenue.
Inasmuch as the MTS's areross budgetary basis, all their revenue is paid into the budget and all their expenditures are paid from the budget. MTS'Income consists ofy collective, farms for.MTS services. These crops and animalare valued at compulsory procurement prices. Because the physical receipts of the MTS's are valued at such low prices, MTS revenues (ail to cover even operating costs. or example, MTS revenues are estimated atillion rubles, compared with total planned expendituresillion rubles, of which aboutillion rubles may correspond to operating costs (see. If MTS income-in-kind were valued at the higher "purchase" prices paid for above-quota sales, however, MTS revenues would be more than sufficient to cover operating expenditures. There has beendiscussion in Sovietbout converting the MTS's from budgetary institutions tonstitutions whosewould cover their costs. In his speech toh Party Congress, Khrushchev criticized the absence of khozraschet in the MTS's and declared that "it would be expedient for the MTS's to switch over gradually, in the next few years, toew and more favorable basis of valuation of the income-in-kind received by the MTS's will be necessary, however, before they can become self-supporting, profit-making enterprises.
Information on the magnitude of Customs andrevenue is available onlynd it is not possible to estimate this entry for more recent years. Reparations from Rumania, Hungary, and Finland endednd those from East Germany umber of Soviet joint stock companies in Rumania, Bulgaria, and Communist China were dissolved, with the terms of sale calling for payment to the USSR in goodsumber of years. Under5 Austrian peace treaty, Austria agreed to pay the USSRillion worth of goods per yearears for the return of Soviet-controlled properties in Austria and, in addition, toillion metric tons of oil annually for Proceeds from the sale of these goods inside the USSR may be treated in the budget like reparations revenue.on goods imported through normal foreign trade purchases the difference between foreign prices convertedubles to.ollar and Soviet internal prices, with an allowancerading margin,aid Into the budget as dustomssolume of foreign trade rises, budget income from this source probably will also rise. On the basis of these developments it apr-pears that budget revenue from customs and reparations may have been increasing in recent years.
*elow.
** In contrastudgetary institution, which draws all itsfrom the budget and returns all its receipts to the budget, an enterprise operating on khozyaystvennyy rsachet (economicor khozraschet, uses its receipts to pay its expenses. these receipts are adequate to cover expenses androfit.
-
4. Economies in Administration.
Savings in administrative costs of economic ministries are entered as budget revenue because these ministries must return to theortion of their allocations corresponding to planned reductions in administrative overheadhese revenues, which thus offsetmall extent budget allocations to the various -ministries, were plannedillion rublesillion rublesillion rubles No reference to this entry was made in6 budget.
Other Revenues.
of Revenues.
Total revenues are planned to increase in6 budget, showing the same-rate of increase over5 revenuess planned real revenues5 did over planned real revenues The increase in revenues will be achievedthrough the expansion of revenues of the two principal revenue categories, Turnover Tax and Profits Tax. The former, benefiting from increased trade turnover and price changes, is planned to6 percent5hereas the latter, adversely affected by theholesale price cut, is set below the5 level andercent above the5 level. State loans revenue is estimated at about the
because its main component, the spring mass loancontinue at overillion rubles, the same5 butlower subscription goal set during the "new course" Of the remaining revenues, it is suggestedduties may be rising as Soviet foreignpayments in goods are made by Austria and Satelliteproperties returned by the USSR.
Surplus.
t
A consistent feature of Soviet revenue policy isudget surplus, as Tables I*how.hows Soviet budget revenues, expenditures, and surplus. The
is planned at virtually the same level as that achieved in
* Pibove. *ollows on
-
Table 5
Soviet Budget Revenues, Expenditures, and
Billion Current Rubies
7 1
Expenditures
a"! Figures are fromndp.espectively, except for the5 plan.
b. Computed from percentages of over fulfillment. Revenuesillion rublesercent of plaruand expendituresillion rublesercent of
5 surplus was below the planned surplus because revenue overfulfillment was less than expenditure over fulfillment. Revenuesillion rubles were reportedercent of plan and expendituresillion rublesercent of plan. From these percentages,5 plan figures for revenue, expenditures, and surplus may be calculated. These revised figures, shown in Tableeflect the effect* of theprice cut and also the apparent elimination of the fictitiousentry Raising Agricultural Procurement Prices.* snd expenditures are both planned to increase by slightly more thanillion rubles, providing approximately the same surplus as
ar.
tary
The Soviet budget surplus differs conceptually from the surplus of the budgets of Western countries because Soviet budget revenue includes loan revenue. In Western budgeting the incresse in government debt is not treated as revenue but rather isas the source from which an excess of expenditures over revenues ij? met. By Western budgetary criteria, the Soviet budget wouldeficit, since exclusion of loan revenue would make Soviet budget revenues smaller than expenditures. ationale for treating loan revenue as ordinary revenue in the Soviet budget, however, exists in the essentially involuntary nature of Soviet loan revenue, which makes it comparable either to direct taxes or to the revenue of gross budgetary institutions. Virtually all bondby the population are made during the annual mass loan drive, when great.pressure is exerted on every wage-earner to subscribe amount equalpecified proportion of his wages. This involun-
tavings flows into the budget, and, although the bondholder is
promised eventual redemption andhancerize in excess of the value of his bond, it is not likely that these sums would be saved voluntarily. Thus most bond purchases by the populationorm of compulsory saving. As such, theyependable source of revenue the amount of which can be fairly accurately planned. Purchases of the state loans by savings banks and the state insurance organisation absorb the free reserves of these organizations and alsoteady source of revenue. It thusractical in the Soviet setting to treat bond sales to the population and to financial institutions as ordinary revenue.
The surplus created by the excess of revenue overconstitutes the fiscal offset to monetary expansion by thesystem. According to Finance Ministerthe excess of revenues, over.upplementary source of expanding credit in the national economy and serves as an important factor in the further strengthening of the Soviet"
Another Soviet source:
If the budget did not create an additional source of credit resources of the State Bank, thencurrency issue would be needed, which could exceed the requirements of circulation and might lead to harmful effects in monetary circulation, which in turn might intensifyarising in the economy, caused by disruptions in production and the distribution of the social product,
art of the budget surplus, however, is devoted to' bank credit. During the Fifth Five Year Plan, short- and long-term credit increased byillionudget surpluses during this periodillion rubles; thusmall part of the budget surplus has on the average served to offset bank credit. Soviet discussions of monetary policy do not reveal the disposition of the remainder of the surplus, but It is possible that it is merely withdrawn from the money supply in order to "strengthen theby reducing the means of payment and thereby reducing the pressure on prices.
III.
Total expenditures in the budget6 are plannedubles,ercent more thanhich the coverage6 expenditures ishows planned expenditures6 and plannedexpenditures. Althoughillion rubles are almostillion rubles below theannounced in5 budget,5ercent of plan, or slightly overfulfilled. of actual expenditures,owever, suggestsare two important differences in coverage between theactual
ollows on p. :
Table 6
Soviet Budget Expenditures
Billion Current Rubles
Financing the amtlcoal Economy
Indus try
Heavy Ught
Agriculture Procuremnnt Trade
Transport sodnnlnlps. Economy aj Other EipeOdl tares
Social-Cultural Measures
Education
Health and Rayslcsl Culture Social Welfare
Administration Defense
Internal security Loon Service p/ Reserve Funds, Councils of Minis tors
lan y
0.6
m
0
N.A.
i 1
Soviet Budget Expenditures
Continued)
r
f
figures In pexentnesee are estimates, k. llocaUons to Agriculture end Prccuresscnt9 billion rubles; in addition, there vas6 billion rubles, ofillion rubleseduction in agricultural income tax. Total allocations vere6,4 billion rubles, ofillion rubles are for Procurement4 billion rubles for Agriculture. I. llocations to Agriculture and Procurement5 billion rubles, of which it ia estimatedillion rubles vere allocated to rrocurement5 billion rubles to Agriculture.
Billion Current Rubles
Category
*/
5/
=/
5/
S/
1/
Si
y
y
to Special Banks
1
Expenditures
real expenditures
Price Reductions
Agricultural Procure-
Prices
0
stated expenditures
,
Table 6
Soviet BudgetContinued)
mt cabiDed allocation to TradCand Procurement3 billion rubles. The allocation to Trade is estimated at
illion rubles,3 billion rubles for Procurement.
n. Municipal Economy estimates are based on republic budget
o. otal allocations for Administration and Internal Security from tbe union and republic budgetsk billion rubles. Allocations from these budgets for Administration are estimated atercent of total allocations to Administration ofillion rubles,illion rubleson tne basis1 Allocations for Internal Security are thus estimated* billion rubles8 billion rubles.
p. Loan Service payments to the population only. Loan Service payments to organizations, primarily savings banks, vere plannediUlon rubles in2 budget, the last time total Loan Service .was
First, it appears that the fictitious entry RaisingPrices has been eliminated fromn the same manner as in the report of5 revenues.entry was not listed in6 budget, and comparisonexpenditures and the individual expenditure categoriesthat it was also eliminated fromifference between5and actualillion rubles)rubles. Budget expenditures for Financing the Nationalwere reported atillion rubles more than the The other reported results for Social-Culturaland Loan Service expenditures are virtuallytho plan figures. Although the Defense allocationesult of.5 wholesale price cut, it is notit and other expenditures declined by so muchf so, it would be difficult to report over fulfillment of If, however, the decline in Defense and Otheramounted torillionecause of savingspries cut. and possible under expenditure-of such allocationsto the Reserve Funds of the Councils of Ministers, thebe explained by the exclusion from5illion-ruble entry in planned expenditures forProcursment
* See II, above.elow.
The second change which may be suggested is an increase in planned allocations for. Financing the National Economy above the level planned in the5 budget. evised set of figures for planned allocations for this category, supposedly showing the adjustment for5 wholesale price cut, has been released.hese data, however,harp increase in unspecified allocations to Financing the National Economy, whereas all the allocations to specified sectors decline, as would be expectedrice reduction. Tho only explanation is that additional expenditures, not in5 budget speech, have been included in the revised figures, which were presented for comparison with6 budget. It does not appear likely that the increase in.planned allocations for Financing the National Economy representsransfer of expenditures from other categories, because other real budget expenditures did not decline by that amount. Instead, it appears that additionalwere authorizedollowing the publication of the original budget. Their impact upon5 expenditures, however, was concealed by the exclusion from actual expenditures of the fictitious entry which had appeared in planned expenditures. Thus5 expenditures, by excluding fictitious expenditures,igher level of activity than5 expenditures. Because their coverage and prices appear to be the same,6 can more accurately be compared with5 expenditures than with the expenditures of earlier years.
L
llocations for Financing the National EcbnOmyoverercent of total budget expenditure* and include fund*investment, expansion of working capital, capital repair*,operational outlays. The'budget categorycompriaing expenditures for Education, Health,Welfare, la the next moat important group,f total expendlturea. Military expenditures accountf the total, somewhat less than their share of5 It la auggeated, however, that becauae of5oaelble cut in troop Strength, militaryactually beigher level6 Otherincluding expenditures for Internal Security, Loanand the Reserve Funds of the Councilsercent of total expenditures, about the same share
A. Financing the National Economy.
Unlike military and social-cultural activities, which are wholly dependent on budget allocations for their financing, activities in Financing the National Economy obtainart of their funds from the state budget. The remainder comes fromfunds (such aa retained profits and amortisation allowancea) and from bank credit. The importance of nonbudgetary funds is indicated inhich ehows the sources of plannedions for the cstegory Financing the National Economy, for fixed investment, and for expansion of working capital. Approximately one-third of the funds allocated to Financing the National Economy comes from organizational funds. An analyais of allocstions to this category muat therefore embrace not only budget funds but also financing from other sources. In the following discuaaion, allocations from both budgetary and nonbudgetary source* sre Firet, the distribution of funds by sector* of the economy (industry, agriculture, trade, transport andnd others) is examined. Then the distribution of funds by end use {fixed investment, expansion of working capital, and others) is analyzed.
1. Allocations by Sector.
The sectoral distribution of allocstions to Financing the National Economy from the budget alone is shownnore comprehensive and also mors detailed view of allocations is providednhich "hows the distribution of funds by sector and source under Financing the National Economy. Data5 sre shown both as presented in the original budget speech5 andevised form presented in
* ollows on*ollow* on
- 22
TOP SECRET
Table 7
Source, of Soviet Planned Allocation, for Financing tne nationalnveetaent, and Expansion
of Working
Billion Rubles
Financing the national Economy
Budget
Organizational funds
investment
Hfij/
Organizational funds
ExpaasleB of working capital fj
,
Orjeuii-tational
it ruble*.
'"elude both allocaUons from current funds la current rubles aad an allowance for reduction. In the cost of invesu-nt below the Inveet-ent planning price, of tbe base teU fo^Sl
Table 8
Financing tne National Economy of tbe USSR: Distribution or Funds by Sector and Source a/
/
tl
Funrli;
Budget
Funds
Fudget
Funi,
Budget
Funds
Ught
9-1
Trade
Transport and communications Other
1.6
7
0
7
5
8.8
1.8
Ui
3
a
Plan figures.
Budget funds are in current rubles. Organizational funds include both, allocations from current funds Id current rubles and an allov-snce for reductions In the cost of investment below the investment planning prlceo of the base date for the Fifth Five Year Plan period, rosultlng from price reductions and Increased efficiency In construction.
c-
in5 budget speechebruaryw
figures5 os revised to allov for5 price reduction- Although these figures are labeled "in nevtho Sovietournal article by Finance Ministerhe organizational figures for agriculture, transport, andidentical with the original plan figures and thus appear not to nave been adjusted.
in parentheses arc estimates.
6 journal article by Finance Mini iter Zverev for comparison with6 allocations. The dual presentation of5 allocations ineveals the effects of5 wholesale price cut upon specific allocations and also indicates the inclusion in the revised figures5 of some expenditures which were not in the original plan. 5 figures adjusted for price changes are necessary for comparison with6 allocations.
Total allocations6 are plannedillion rubles,ercent more than the revised planned allocations Of the total the major share goes, as in the past, to Heavy Industry, which receivesercent of total allocations. Of the specified sectors, Agriculture comes next withercent, followed by Transport and Communications withercent, There hasarge increase compared with the5 plan In the size of the unspecified residual, which sxceedsercent of total allocations As Tablehows, however, most of this increase actually occurreds Zverev's5 figuresharp increase in budget allocations for unspecified activities in Financing the National Economy, Unspecified allocations .in6 budget areercent greater than those In the5 budget data.
a. Heavy Industry.
lanned allocations to Heavy Industryillion rubles, an increaseercent over thellocation. Less reliance will be placed on Internal financing, however, as budget allocations are estimated to increase by almostillion rubles, whereas organizational allocations will fall byillion rubles.
When5 budget was first announced init was suggestedhange in the scope of the Heavyhad occurred, resulting possibly from the transfer cfexpenditures from the unspecified residual to the Heavyportion of Financing the National The declineunspecified budget allocations to this category correspondedto the increase in allocations to Heavy Industry, and ofin the unspecified category inprimarilymunicipal economy, state reserves, goldlabor camps, and atomiche one most likely tdand to have accounted for the necessary magnitudebe atomic energy. hift of atomic energy outlaysther Expenditures category of the budget to the residualthe National Economy had been observed
TOP SEISRET]
and it was thoughtomparable transfer, possibly associated with organizational changes, had occurred
.
Total allocation* to Light Industryatillionn-ubles, an increase ofercent bverllocation in comparable prices. Most of the increaseto come from organizational funds rather thanllocations to Light Industry6 are well below thaachieved4 under the "new course" program. It isthat allocations to Light Industry will increase in theyears aa agricultural production, upon whichlight industry de-for most*of its raw materials, expands.
'
Allocations to Agriculturere planned at illionhihhercent is to come from the budget' andercent from organizational funds. Budgetary allocations are virtually the same as those planned, in comparable prices,' lthough their distribution has changed, probablyng the completion of the settlement phase of the "new lands" program'. Allocations to Agriculture cover all the expenditures of the MTS's; provide investment funds, working capital; and some subsidies to state farms; and finance general agricultural programs, such as irrigation, electrification, afforestation, experiment stations, and agricultural resettlement. The distribution of planned budgetary allocations to Agriculture56 is shown in
*ollows on p.
ee II, D,bove, for discussion of plans to convert the MTS's.elf-supporting basis.
The bulk of allocations to Agriculture goes toas "gross budgetaryurn all their revenuebudget^and make all their outlays from budget funds,nMTS'sVill receive two-thirds of all budgetary allocations toan increase over their share ofercent in thebudget. -Over one-fourth of MTS expenditures are estimatedspent on new fixed Investment, with the remainderexpenses, including wages, fuel, materials,6 allocation is virtually Identical in ruble. <
Table 9
Soviet Budget Allocations to Agriculture56
Billion Current Rubles
Original W 5 fV6 JV
Machine tractor stations
6
A.
expenditures Fixed investment
N.A.
N.A.
{arms .
A.
expenditures Fixed investment
6.6
.
N.A.
8
?.
'
fc
announced in5 budget speech on
3stimated distribution of MTS allocations is based on.
llocations expressed in From Table.
. igures in parentheses are estimates.
with5 allocation, allowance must be made for price reductions5 affecting fuol and machinery and equipment. ThusUlion.rublos willubstantially higher level of investment and operations thanillion rubles allocated
mi - '
State farms willillion rubles or one-sixth of budget allocations to Agriculture Of this, perhaps two-thirdsiyill be devoted to new fixed investment, primarily in state farms in the "newJJJion rubles of the total state farm allocation ofillion rublesnew lands"he decline in state farm allocations fromillion rubles in5 budgetillion rubles6 can be explained in part by the completion of basic expenditures for the creation of state farms in the "newnd in part by the reduction in state farm expenditures resulting from therice reduction.
In addition to financing new fixed investment, allocations to state farms will provide increased working capital; will finance various operational expenditures, such as measures
*
-
against plant and animaland* surveys, andnd will furnish subsidies to cover losses. rive to eliminate state farm subsidies'was* begun4 by increasing their revenues and reducing their costs. Revenues were increased by raising the prices paid to state farms for their output. Cost reductions were to be obtained in part.throughJgwer prices for inputs such as feed and mineral fertiliser and through aof the cost of production to exclude expenditures for housing services. The major part of cost reductions,as planned to come from increased efficiency of the latter has not been achieved, the need for subsidies has not been eliminated. According to:
tate farms gave profitsthe sumillion rubles. In
leading state farms gave profits in approxi- 1 'that amount. However, manystill continue to operate-bringing large losses tover two-thirds of the statethe USSR Ministry of State Farmsyeaross in the sumubles. osses of these state'amounted toillion rubles.
Although some of these losses are covered by the redistributionprofits of successful stateoma-budgetstill required.
*bove.
-.The Other agricultural allocation Inxpendituresariety ofncluding soilconservation; experiment stations; mass plant andcampaigns; formation of forest, water,electrification; and mass agricultural resettlement.decline in these allocations8 billion rubles inillion rubles6 can be attributed in part toprice reduction but primarily to the virtual completion of thesettlement costs of the "new lands" program. 4 andthe State budget paid for-the transfer of families and propertythe "new lands" area and gave grants to the new settlere.addition, budget granta were made to collective farms inlands" for surveying and clearing the new areas;building-irrigation and drainage works; androads, ^bridges, and/waterith the virtualof the settlement phase of the "new lands" program inexpenditures, will not be repeatedlthough statein MTS's and state farma in the "newigh level. '
d.omestic Trade.
Allocations to the Ministry of Trade6 areillion rubles, or approximately the same ashen Trade allocations from the budget and organizational funds fell to one-third ofillion rubles allocated in the "new course" year About one-third of6 allocations will be furnished by the budgeuand two-thirds will come fromfunds. Allocations will be used to expand retail trade facilities in urban areas, where the Ministry of Trade operates. In rural areas, retail trade is conducted by the consumerwhich are not financed by the-budget.
8" Transport and Communications.
Allocations to Transport and Communications6 are planned to increaseillion rubles, or 9above the5 level (in comparable prices). These allocations will finance the electrification and dieselization ofand the construction of new rail lines as well asher transport services and communications scheduled in the Sixth Five Year Plan. ..
rocurement.
V Budget allocations to Procurement under Financing the National Economy have been estimatedn Tableo estimate can bo madeowever, because of recentchanges in the procedures for financing procurement organizations, which affect .the size of budget allocations to Procurement. to procurement organizations cover fixed investment;of working capital; andeimbursement, to thesefor overpayment of the turnover tax, which results from the Soviet multiprice. system of-agricultural procurement. These tax rebates constitute the bulk of allocations to Procurement in Financing the National Economy, estimated5 billion rubles in the5 budget. In that year, fixed investment in the Ministry ofProcurement was'planned atillionnd the Ministry's share of tho total planned increase of nonindustrialcapitalillionould nbthave been very large. Thus most of the allocation was devoted to compensating procurement organizations for overpayment of turnover tax. -
These tax rebateseaBary becauseprocure-ment organisations buy agricultural products from producers at various prices but sell themingle price. Procurementbuy agricultural products at tine following prices:delivery prices paid to collective farms for quotarocurement"he higher pricea paid to collective farms for above-quotaurchase"nd prices paid to state farms for their deliveries (state farm "delivery" prices). When procurement organisations sell to processing industries, however, they sellingle "accounting" price and pay to the budget a
ee Tablesp.espectively, below.
- ,.
turnover tax which represents the difference between the "accounting" price, on the one hand, and the low "procurement" price, plus afor the services rendered by the procurement organizations, on the On agricultural products actually purchased atprices, this level of taxation leaves the procurement or-anizationsmall margin which enables them to cover expenses androfit. On agricultural products acquired at the higher urchase" or "delivery" prices, however', this level of taxation -causes the procurementoss, as they pay out In "pur- -chase" or "delivery" prices to producers, and in turnover tax.to the: budget more than they receive from processing industries. The amount of their loss corresponds to the difference between-ment" prices and "purchase" or "delivery" prices on agricultural products acquired at the latter two prices. Procurementare compensated for these losses by allocations from thejbudget.
J..
It appears that most of these-reimbursementseen made under allocations to Procurement under Financing theNational Economy.Some reimbursements,uch as those. for livestock and dairy products, have been made fromitures rather than from Financing the Nationalowever, therehift of some allocations for reimbursing procurement organizations from Financing the National Economy to Other Expenditures. In connection with the increase in agricultural prices in that year, reimbursements to agricultural procurementfor grain acquired at "purchase" prices from collective farms were shifted from Financing the Natinnai Ernnnrnv fn nrhw"
Expenditures, according The magnitude of this ahii. .- wul.
in Other Expenditures rather than in Financing the National Economy the increase in procurement reimbursements that must have followed the increase in grain "purchase" prices
furtheriwimih ui gram procurement re oaies'
occurrednd it may haveeturn to theof granting these funds under allocations to Procurement inNational Economy,!
TOPVECRET
If this change, which want into effect after the announcement of theudgethift inallocations from Other Expenditures to Financing the National Economy, it might explain part of the large rise in the residual in Financing the National Economy1 billion rubles in the original budgetillion rubles in Zverev'a revised figures (see.
Estimation of the level of Procurementfurther complicated by two developments which have occurred It has been reportedournal of the Ministryhat,he prices paid byindustry to grain procurement organizations wereorder to cover the cost of grain acquired atandprices as wall as "procurement" prices. esult,from the budget presumably will no longer bechange in Procurement allocations may also bethe decree ofharply increasingand "purchase" prices for vegetables, / Becauae ofmagnitude of these changesack of informationprices and on the- different amounts ofacquired at "procurement'1 and "purchase"prices, noof allocations to Procurement can be made remains, however, that allocations to.Procurementin part responsible for the increase in the residual inNational Economy in the5 figures and theshown in Table 8.
" Other Expenditures in Financing the National Economy.
*bove.bove.
In addition to Procurement allocations, the residual, or Other Expenditures .sector, inncludes allocationsumber of activities in Financing the National Economy which are not specified in recent budget speeches. These activities are known to include the Municipal Economy, state reserves purchasing, the Chief Directorate of Precious Metals of the Ministry of Finance (presumably the agency which purchases gold from domesticand several minor activities, such as the Chief Directorate of Hydrometeorology, Chief Directorate of Geodoay and Cartography, and prison labor camps./ In addition, atomic energywere included4 and possibly in later years, although it has been suggestedhat thby may have been shifted in5 budget to Heavy Industry. The unspecified residual may also contain allocations .to the Ministry of Foreign Trade which were listed in prewar budgets in Financing the National/ It is also possible that Ihe sector Other Expenditures containsfor the development of unconventional weapons, such as guided missiles, whpso location in the budget ia^not known.
aportion' of thia residual may be ac--'estimated in certainhus in'udgetto the Murkip.i] Economy for municipally operated housingpublic utilities have bean animatedrom datoCrepublic budgets. Procurement allocationsbut notor reasons discussed above.-is not available to ha sard even rough estimate's' ofof allocations for state reserves purchases, goldenergy, or the various minor activities in the. V'-*ts.
It is thus difficult to explain the sharp increasethe unspecified residual shown in Table* which rose7 billion rubles in the5 budget36 budget. oes show, however, that.'mOstincrease actually occurred sometime' for the revised figures, presented6 Journal article by FinanceZverev, show an increase ofillion rubles over the originalfigures,-which he had presented In his budget speech The revised figures are described asallocations In newrices and araby Zverev with those The specified allocationsIndustry, to Agriculture, and to Transport and Communicationsthe effects to- be expected from the wholesale price cut.reduced these specified budget allocations byo The unspecified allocations incrBased byillioninstead of fallingesult of the price reduction! therefore, that in the revised figures someincluded which ware not in the original budget figures. activities included hi the residual.in the original budgethave benefited from the price reduction, like theit is suggested that the additional expendituresexceededillion rubles, perhaps amounting to 20 .
It is possible lhat these increased allocationsthe National Economy could have comeransferexpenditures from some other part of the budget or from new not authorised in the budgetebruary
*bove.bove.
-
Although it has been suggested abovehift ofllocations may have occurredhere is no evidenceeduction in real expenditures in other budget categoriesicient to,ransfer ofillion rubles to' Financing the ational*Economy. Actual expenditures5 for Social-" ': Cultural Measures, Loan Service, and Administration were virtually the same as planned. Dsfansa expenditures were probably reducedesult of tha price cut and perhapseduction in troop strength, but in view of allocations authorised in6 budget, the difference between plannedjand5 Defense allocations could not havs approachedillion rubles. No substantialrom Other Expenditures seems likely either, in view of therease of this categoryillion rubles in the5 budget8 billion rubles in the6 budget (see
hus it appears more likely that ne* expenditures
classified in Financing the National Economy were authorisedfter the announcement of the budgetnd included in Zverev's revised figures. No direct evidence of such new authorisations is available from either collateral or COMINT sources. Whereas it is possible-that increases in state reserves or gold purchases or In some minor component of the residual were authorizedhere is no indication of changes in such activities approaching the order of magnitude-illion rubles.
Although the suggestion cannot be substantiated at the present time, it is proposed that increased allocations to the Ministry of Foreign Trade may account for some of the apparent increase in unspecified allocations5 and the high level of these allocations An examination of the internal financing procedures of Soviet foreign trade organizations suggests that some type of allocations from the budget, analogous to those provided to procurement organizations, would be required. Allocations would appear to be necessary to reimburse foreign trade organizations for bookkeeping losses resulting from differences between Soviet internal prices and international prices which the foreign tradeincur because they exchange rubles for foreign currency at the State Bank (Gosbank) at the rateubles to the/ For example,oreign trade organisation imports an articleorld price"of0oviet internal price ofubles, it would pay the Stateubles to obtain0 anduble profit which results from price differences and the exchange rate used. Conversely,oreign tradeexports an articleoviet domestic priceubles and gets0 on the world market, it will receiveubles whan it turns the0 over to the State Bank. Its lossubles likewise is attributable to the price, and exchange rate structure, not to inefficiency.
foreign trade organizations are self-sus-
*bove.
-
taining enterprises whose revenues are supposed to cover costs androfitrader's/ They would not be expected, therefore, either to retain gains on imports or incur losses on exports when these gains and losses are due to price-differences and exchange rates beyond the control of the organizations. It has been pointed out above* that gains on imports are paid into the budget as customs revenue. No discussion has been encountered in Soviet foreign trade accounting literature of the treatment of losses on exports, but it appears that such losses must exist so long ss the ruble-dollar ratio on any exportso./ the rate at which the State Bank buys the dollars which foreign trade organizations receive from sales of Soviet goods abroad. As ruble differences on imports are paid into the budget, they are not available to trade organizations to offset rubleon exports. The latter presumably must therefore be covered by budget allocations. Allocations to reimburse foreign
trade organizations for bookkeeping losses-On exports would tend to rise aa the volume of exports increased but tend to diminish aa the difference between the ruble-dollar ratio for exports and the exchange ratearrowed.
It may therefore be suggested thst, inthe extensive Soviet foreign trade and aidarge budget allocations to foreign trade organisationaneceaaary. If theae allocationa appear in Financing theaa in prewar budgets j such
an Increase might account for parTd tne merest* in the reaidual in Financing the National Economy in the5 figures and in6 budget. No evidence is available aa yet, beyond the reasoning presented above, to substantiate thia suggestion, but it appears plausible in the light of developments in Soviet economic policy followinghen the5 budgetresented to the Supreme Soviet.
2. Allocations by End Use.
-Allocations to Financing the National Economy provide funds for new fixed investment, expansion of working capital, capital repairs, and vsrloua operational expenditures. hows the distribution, by end use, of planned allocations to Financing the National Economy. 'Although the estimated character of virtually all the figures makes them'subject to some error, the table reveals the order of magnitude and general trsnda of the cate-goriea indicated. Available data permit the distribution of capital allocationa into fixed investment, expansion of workingnd capital repairs, for the economyhole. Operational allocationa can be divided only broadly into those for industry and thosether sectors of the economy. * shows the distribution by end use of allocations to Soviet industry. The estimates for* tional allocations to industry in Tableave been derived byfrom total allocations to industry those allocations intended for capital purposes. Fromt is evident that capital allocations conatitute aboutercent and operational allocations aboutercent of all allocationa to Financing the National Economy, New fixed investment ia the largest single category, representing close toercent of total allocationa to Financing tho National Economy andercent of capital allocations. Within the operational allocstions group, marked changes took placeo the changes discussed above in Heavy5 and in the residual in Financing the National Economy*
a. Fixed Investment.
The hulk of fixed investment in the USSR Is made by state enterprises and institutions under the state investment plan. The
* Tableollows on* Tableollows onp.bove.
-
Table 10
financing the National Economy of the USSR:
by End Use
Distribution of Fundi
Currant rublea except for fixed inveatment and total allocations to Financing the National Economy.
investment outlays in allocations to Financing theare equal to total state fixed Investment outlays lessunder other allocationsor example, underMeasures or Administration. It ia estimated thatof the residual investment's inof outlays financed under othero obtain the fixed investment figures In this table, one-half
Of the residual line inelow, was subtracted from total -investments in 45 are inplanning pricesigures6 are inplanning prices
in parentheses are estimates.
Table
capital repairs, fromillionyear for estimated capital repairs in expenditures forMeasures and Administration.
elow.
-
Financing Sovietistribution of Fundi by End Use a/
Billion Rubles b/
Item
Investment c/
/
of working
. 7)
outlaya
7)
gf
1
figures.
rublea. except for fixed investment and total. .
elow. Figures4 andin investment planning pricesn investment planning prices
in parentheaes are eatimates.
igure ia from In that year,of working capital in industry amountedotal planned expansion of working capital. The samewas applied to figures for total planned expansion46 in Tablebove.
atercent of total capital repairs. / .
Tablebove.
t *
size and distribution of these Investmentsre shown in* Some inveatmente, totalingillion toillion rubles, aro also made outside the plan. The plan excludes small investments madeecentralized basis by state enterprises, the investments of collective farms and cooperatives, and private investments in housing. Virtually sll of the Investments under the state inveatment plan are made in various sectors of activity financed by allocations for Financing the National Economy. Part of the residual line inowever, corresponds to fixed investment in schools, hospitals, general administrative buildings, and probably some basic defense construction. These investments sre financed under other budget allocations, such ss those for Social-Cultural Mesaurea,and probably Defense. During the Fifth Five Year Plan period.Social-Cultural investments amounted to aboutillion/
* Tableollows onbove.
Fixed investment is financed in part from budget allocations and in part from organizational funds. The distribution of financing between these two sources haa been indicated above in* where it la ahown that approximately two-thirds of total
Because the figures45 inre expressed in investment planning priceshich were used for the Fifth Five Year- Plan and because figures6 are expressed in pricesn effect for the Sixth Five Year Plan, allowance forpercent drop in aggregatecosts between those twoust be made in comparing allocations in different years. According to Zverev,rubles of investment planned6 actually represent an increase ofercent over5 investment whenis made for price/ Investment in each of the sectors will also Increase correspondingly more than appearsirect comparison of6 figures5 prices) with the earlier figures0 prices).
s in the past, Heavy Industryhe largest share of0 percent, or more thanimes the share of Light Industry. Although investment in Light Industry6 will exceed the levelt will still be well below the level achievedhe "new course" year, even after' adjustment for price differences. Of the remaininghe hares both of Agriculture and of Transport and Communications in total investment will increaseomparedhiefly at the expense of the residual category,
Although virtually all investments in Industry, and Communications, and Social-Cultural Measures are made the national investment plan, this is not true of investment Only about half of totaj investment in'Agriculture .in state agriculture under the national investment plan; thehalf consists of collective farm investment. In Tabledistribution of total investment in Agriculture between statefarm investment is shown. It is estimated' "total investment6 is planned atillion rubles, i * "v -
* bove,
P. 3.
Tableollows on. " See Tablebove.
-
State Investment in agriculture includes investments in the MTS'S, in state farms, and In general projects such aselectrification,and afforestation. lanned investment in the MTS's is estimated atillion rubles, whereas planned' state farm investment was announced asillion rubles. Investment in general projects may have beenillion rubles. Theof6illion rubles in state*has not been announced, but it is probable that the total will be distributed approximately as State agriculturalill increase6 by considerably more than appears from56 figures inecause of the difference in the prices in which these figures are expressed.
of Working Capital.
Soviet enterprises operate with two type* of working capitalheir "own" working capital and borrowed working capital. "Own" working capital ia increased both from budget grants and from organisational funds. Working capital may be expanded from or -ganizational funda either through the allocation of profits to working capital or through the increase in funds earmarked to offset accruing current liabilities./ or example, it is planned2 billion rubles from profits will be allocated to expansion of working capital (see, but working capital fromfunda will increase by onlyillion rubles (seeesultecline ofillion'rubles in funds for offsetting accruing current liabilities.
In addition to budget and organizational aUoca'tiohs" of "own" working capital, Soviet enterprises get short-term credit from the State Bank. Inhe level of State Bank credit outstanding is ahown. From this table the annualin working capital from short-term credit may be derived. In* the increases in working capital of Soviet enterprises are shown. From Tablet appears that less than half of the annual increase in working capital haa been obtained fromfunds. 3 the actual increase in borrowed working capital was only one-third of the'planned increase in "own" working capital.45 lt appearsreater share of the Increase in working capital came from bank credit than in previous years. This increased dependence of Soviet enterprises on bank credit forcapital la probably one of the results of the4 financial reforms, which were intended to strengthen the control of the State Bank over the financial transactions of Soviet/
?"
*bove.ableollows on* Tableollows onbove.
-
Capital repairs are financed in part from the budget and in part from organizational funds. Soviet enterprisesart of amortisation allowances to capital repairs,'and, in addition, some retained profits may be allocated to finance capital repairs. Very little has been published in the postwar period about either the amount of total capital repairs or the relative Importance of thesources of financing. otal capital repairs were planned4 billion/ and5 it was plannedillion rublea would be spent for the repair of industrialand/ In* capital repairs financed by allocationa for Financing the National Economy areatillion rublea In addition, it is thought thatillion rubles may be spent for cspitsl repairs of social-cultural and adminiatrative structures and equipment. No postwar
.
information is available on the shares of the different sources of financing capital repairs, but it appears reasonable to assume that the budgett lsastercent, the share which it furniahed in1 capital repair/
-
TOPSkCRET^
Operational" allocations, under Financing the National Economy comprise a'variety of noncapital expenditures. They include the operating expenditures of "budgetary" institutions like the MTS's; government purchases of goods and services, such as the cost of operating agricultural experiment stations; reimbursements for priceubsidies;umber of developmental expenditures, such as expenditures for Inventions and new products. In addition to allocations under Financing the National Economy, operational funds are furnished to enterprises from the Social-Cultural Measuresof the budget for scientific.research, factory education,of nurseries, and political/
Although most subsidies were abolished as athe increase in wholesale prices and freight ratesare still granted to selected industries and activitiesb are not fixed high enough to cover costs .of production. industries, losses are coveredby the redistribution ofa given chief direct orate. Budget subsidies, however,granted to the timber industry,/ the fish industry, farms,/ Dal'stroy mining activities,/ andactivities whose subsidies have not been identified. are reported also in the Ministries of the Coal IndustryMachine and Instrumentsg/ and it is possiblesubsidies are provided to parts of those ministries. ' not adequate,
however, to estimate) the sixe Of subsidy payments, m '
Several types of developmental outlaysthe budget as operational allocations for Financing themay be distinguished. Theyxpendituresthe production of newutlays forimprovements andstartingxpenditures ofutlays for "state measures" of interest tb thea
Expenditures for mastering the production of new products include expenditures for the design of new products,and testing of experimental models, development of prfa-duction processes, and cost analysis and norm/ Budget funds are granted for these outlays when it is not considered desirable to set product prices high enough to cover initial development
Expenditures for technical improvements andcomprise those for studies, experiments, and tests; manufacture of models; bonuses for inventions and improvements; and modification of norms and/ Budget grants are made only forand inventions of interest to an entire branch ofr the economyhole. Thecost of improvements and inventions of interest only to the individual enterprise is covered by revenue from the sale of product./
* See III, A,nd g, above., A,, above.
-
expenditures of new enterprises, such as the cost of organizing production and training workers, may also be financed from' the budget rather than included in the price of the/ Because these expenses are ordinarily connected with bringing new fixed assets into operation, however, they are sometimes included in allocations fOr fixed investment./ On the other hand, the cost of operating investment-planningis* not included in fixed investment allocations but is instead covered byoperatlonal allocations from the/
Finally, budget funds are allocated tocover expenditures which are made by the enterprise butimplications for the development of the economy as aas expenditures for resettlement of workers, forestand awards to workers under nationwide productivity
: a It is not possible at present to determine thethese different developmental outlays or to estimate thethe different types of operational expenditures representoperational allocations shown inperationalmay, however, be roughly estimated between thosend those to other sectors. Asllocations have risen in recent years,6 are estimatedillion rubles,han the5 level, .despite the wholesale priceof This rising trend reflects IncreasedMTS'* and other agricultural activities, larger allocationsand possibly foreign trade organizations, andexpenditures. If the cost of developing modern.borne by-allocations to the defense industry under FinancingEconomy, current emphasis on expensive, highlyend items would also be responsibleising trendallocations. The initial use of atomic power inlikewise require operational
The. marked changes in the Industry and other
bove.
HI, A,bove.
-
operational allocations shown in. Tableould appear to correspond to the changes analyzed above in the discussion of the sectoralof allocations for Financing the Nationalhe.in Industrial operational allocations and the decrease in other operational allocations4s shown inesult from tha apparent shift of allocations from the residual4 to Heavy Industrys shown in Table* Industrialinowever, increased by more than the decline in other operational allocations,et increase in industrial operational allocations, which would be expected as the activities finance by these allocations expanded. s comparedoperational allocations in Tableecline byillion rubles,
or IS percent, whereas other, operational allocations, increasebillion rubles. The decline in .industrial allocations is duepart to savings fromrice cut and possibly also toelimination of some subsidies. The increase in-other opera-allocations, on the other hand, is connected with thethe unspecified residual in Financing the National Economy,which, it was suggestedctually occurred duringthe specific nature of the allocations which increasedbe definitely identified, it appears from.Tablehat theyoperational in character rather than representing aincrease in
..
B. Social "Cultural-
Allocations for Social-Cultural Measurea6illion rubles, orercent of total budgetexpenditures are planned to increasexpendituresillion rubles. The increase of.15 rubles is shared almost equally by the three major types ofexpendituresducation. Health andand Socialaudi
- .
1.
Educational allocations6illionrercent of total social-cultural expenditures. They include : xpenditures for primary and secondary schools, trade and vocational" schools, higher education, adult education, nurseries.and orphanages, scientific research, and museums, as well as fixed investment'^ capital repair outlays in these fields. everal items in edu-1cational expenditures were announced for the first time in recentvi-i'--years. * shows planned budget allocations to Education In6 budget, only one item,-preparation ofadres (professional and skilledas specified.-
Planned allocations to scientific research6illion rubles, of which it is estimated that about two-thirdscome from the budget and one-third from or ganlzatlonalllocations6 areercent greater than5* tions; which in turn wereercent higher than planned (We*cientific research allocations will finance research by the Academyof Sciences, ministerial research institutes, and universities andcover both basic and theoretical research and applied science/ *
Health and Physical Culture. :-
ifor Health and Physical Culture in
planned1 billion rubles, orercent more than"5
expenditures. These include funds for hospitals and dispensaries.,.
* See III, A,, above.ableollows onTableollows on
-
edical services for children,edical aid to invalid veterans, and other expenditures, including
Soviet Planned Budget Allocation, for56
Billion Current Rubles
6 b/
of primary and .econdary .chools Preparation of cadres
Trade and agricultural labor training
schools (secondary level) Vocational technical schools (advanced
level)
Higher education and secondary semi-professional schools
Scientific research Other
Total
a7
in parenth
estimates.
N.
1 c/
6.9
7)
Table 17
Soviet Allocations for Scientific Research
Billion Current Rubles
(plan)
(actual)
3
(plan)
(plan)
(actual)
(plan)
N. A.
N.A.
N. A.
N.A.
N.A.
.
. N..
.6
-
capital repairs and investment in medical institutions. Ofillion-ruble increase in health expenditures over5illion rubles is due to an increase in salaries for medical/
3. Social Welfare.
Social Welfare allocations, including social security, social insurance, and aid to mothers, will increaserubles56 billion rubles The distribution of Social Welfare allocations among these three groups in the56 budgets is shown in* which shows that the increase6 is due to larger social security expenditures. This category includes pensions to disabled veterans and other invalids; funds for rehabilitation of disabled persons; and retirement pensions to scientific, administrative, and other employees not covered by the social insurance system. It excludes, however, pensions tomembers of the armed forces and internal security forces, which are included in the expenditures of those ministries. Little change was indicated in6 budget speech in allocations for social insurance, which provides temporary disability,nd survivors' benefits for workers in industries where socialpayments are made to the budget by enterprises; or aid to unmarried mothers and mothers of many children.
Both social security and social insurance expenditures should increase when the new Soviet pension law, announcedoes into effect In6 budget, allowance for this Increase was apparently made in the social security allocation but not in the social insurance allocation. Some over fulfillment of the latter may therefore be expected
C. Administration.
* Tableollows on* See II, D,above.
-
Allocations to Administration include expenditures of all central administrative-control organs, such as the Ministry of Foreign Affairs, the State Planning Commission, judicial bodies, and the administrative overhead of the economic ministries. Two-thirds of these allocations go for the payment of wages and thethird covers the purchase of office supplies and equipment, travel funds, and the construction and repair of administrative buildings. 7 In connection with administrative reorganizations after Stalin's death, the number of persons on administrative staffs was reduced,aving ofillion rubles per year. / Most of these people, however, were on the payrolls of factories, trusts, and combines and were paid out of revenue from the sale of product, rather than from budget allocations for central administration./ Thus budget allocations forwere reduced byillion rublesillion rubles3illion rubles The remainder of the saving in administrative personnel costs represented "economies inhese savings are treated in Soviet budgetary accounting as revenue, since ministries are required to pay into the budget an amount corresponding to the planned reduction inoverhead.**
illion rubles, freeing this sum for procurement./ The combined effect of the price cut and the reduction in the armed forcea would therefore be aboutillion rublea, or enough tomilitary procurement at approximately5 level. owever, procurement coata will decline aa various recentlymodels of military equipmentparticularly aircraftfurther into quantity production. / It is thus poaaible, in view of5 price reduction, thetclaimed reduction In troop strength, and cost savings from quantity production, that6 allocationillion rubles will finance the procurement of moro military end items than5 allocationillion rubles.
urther force reductioni ill ion men. announced ons carried out a* scheduled, actual explicit defense expenditures6 should be substantially below planned outliya. Nonexplicit defense expenditures, however, such as those for atomic energy and guided missile development, may be increasing at the same time explicit defense outlays are reduced.
2. Other Defense Expenditures.
In addition to the announced allocations to the Ministry of Defense, there are outlaysefense character in budgetto the defense industry, the atomic energy program, and guided missile development.
Allocations for capital and operational expenditures to the various ministries concerned with defense production, such as the Ministries of Defense Industry. Aviation Industry, andare included in allocations to Heavy Industry in Financing the National Economy. The magnitude of these defense-orientedcannot he estimated, however.
Atomic energy activities are also included inNational Economy, although, as pointed outhere isabout their precise location within thatt Is that atomic energy allocations may be found in otherthe budget, but there is no evidence.at present to support this Atomic energy allocations in Other Expendituresto Financing the National Economy/ Recentindicates that atomic energy expenditures areocial-Cultural Measures. ^
suggests that the atomic energy activities performed by the Academy
of Sciences are financed not from the Education allocation but from
the allocation for Financing the National Economy, the only one in
* See III, A.. above.
-
which atomic energy expenditures have been currently identified.
As yet there ie no information on the financing ofguided missile program in the-budget. No evidence has'to identifyof these expenditures in they analogy to tbeprogram, it might be suggested that expenditures forcould be financed under Financing the Nationalthan, for example, under Other Expenditures. WithinFinancing the National Economy, it is conceivable thatprogram could be included in Heavy Industry because ofrole in the program held by the Ministry of theand the probable connection -with the program of theof General Machine/
E. Internal Security..
Aitnougn me present is,uo ueuitiiiK independentha MVDts statusommittee is more modest than that of the old MGB, and it ia therefore probable that its expenditures are less than those of the MGB. This suggested decline in Internal Security allocations is supported by the decline in the budget category Other Expenditures, half of which was devoted to Internal Security
F. Other Expenditures.
Other Expenditures include service on the state loan,to the Reserve Funds of the Councils of Ministers, grants to long-term Investment banks, and minor expenditures such as allocations" to the Red Cross and for conducting elections..
Voan service has been increasing steadily, as the number of outstanding bond issues rises. oan service figures refer only to payments to the population, which6 are planned atil -lion rubles. In addition, loan service is paid to institutional holders of state debt, such as the savings banks. oan service to institutional holders was planned'9 billion rubles, and it hasrisen since then,esult of further investment of savings bank deposits in the state loan each year.
-
Internal Security allocations include appropriations for the Ministry of Internal Affairs (MVD) and Committee on State Security (KGB). The MVD controls the ordinary police and the border troops, whereas the KGB is concerned with investigating crimes against the state such as treason, espionage, and the disclosure of state secrets, and with conducting espionage abroad. The economic activities of the MVD are included in Financing the National Economy. from which Internal Security allocations could be estimated has not been available In that year, it is estimated that Internal Security allocations were plannedillion rubles.
Allocations to the reserve funds of the USSR Counciland the Councils of Ministers of the union republicsbillion rublesillion rubles, respectively, in/ No figures have been released for laterit is probable that these allocations have increasedreserve funds consist both of ruble balances intended toexigencies (such as losses suffered by enterprises as aof natural calamities or other extraordinary outlays) and of holdings intended to meet unforeseen demands forand equipment and to absorb above-plan output./ balances were used to pay expenses arising from theStalin's death * " ' Council of Ministers of the Uzbek SSR requested tnatcranes, trucks, and other equipment be allocatedreserves of the USSR Council of Ministers for urgentpower construction projects.
Allocstions to long-term investment banks provide funds to these institutions to make loans for investments in activities not directly financed by the budget. Allocations to investment banks were plannedillion rubles in2 budget, but it isthat they have risen substantially in later yeara,eeult of the increaeo in credit granted to collective farms by theBank and the increase in loans for private houaing granted by the Communal/
G. Summary of Expenditures.
Soviet budget expenditures6 are plannedillion rublesn increaseercent over5 expenditures. Greater allocstions for Social-Cultural Measures (Education, Health, and Phyaical Culture, and Social Welfare) will account for almoat half ofdditional slloca--tions for Financing the National Economy areillion rubles, less than one-fourth of the increase in total expenditures. for Financing the National Economy, however,nd overfulfilment is possible alson view of the modest increase planned. Fixed investment ia plsnned to riseercent above5 level, with Heavy Industry receivingercent of total investment
Explicit Defense expenditures, consisting of allocations to the Ministry of Defense, representercent of6 budget, as compared withercent of the5 budget. 5 defense expenditures were not announced, and they may well have been below plan, as has occurred in previous years, lt appears that the decline in the explicit Defense allocation56 can be explained by therice reduction, the claimed cut in the armed forces, and savings from mass production of certain military end items. When allowance is made for these factors, it is possible that6 allocation may finance as much military end-item procurement asr even more. Nonexplicit defense expenditures such as those for atomic energy and guided missiles may also have risen.
-
Budget expenditures of the first year of the Sixth Five Year Plan reflect the priorities ofpolicy. First place in both investment allocations and allocations for Financing the National Economy is giver, to Heavy Industry, the prime mover of economic growth and the technical and production base upon which theof modern, highly complex weapons depends. The increased emphasis accorded .agriculture4 continues, as shown by the maintenanceigh level of budget allocations to agriculture after the completion of the initial settlement phase of the "new lands" program. Light Industry fares slightly better in6 budget thanut allocations are well below4 peak. Thus Soviet economic policys manifested in the budget, pursues essentially the same objectives as5eeking economic growth and military strength, with secondary emphasis on consumer welfare.
IV. Budgets of the Union Republics.
6 the budgets of the union republics are planned toillion rubles, as comparedillion rubles planned Of total planned expendituresillionillion rubles will be spent for Financing the Nationalillion rubles for Social-Cultural Measures, andillion rubles for other/ Thus aboutercent of total budget allocations for Financing the National Economy andercent of allocations for Social-Cultural Measures will be disbursed through the union-republic budgets. The budgets of each of the republic*the Kazakh SSR will share inpercent increase of republic budget allocations The Kazakh budget, on the other hand, will fallillion rubles5illion nublesesult of the completion of part of the "new lands"/
The Increase in republic budgets is due in part to the growth of the state budget and in part to the continuation of the movement toward decentralization which began In6 budget speech, Zverev mentioned several steps taken to increase the authority exercised at the union-republic level. First, many additional enterprises in heavy and light industry, construction organizations, and state farms have been placed under the direct jurisdiction of union-republic ministries. Second, the Councils of Ministers of the union republics have beer, given greater authority to plan capital investment, production, and wages as well as outlays for health, education, social welfare, and municipal services. Thus the state budget will provide block grants for economic and social-cultural expenditures, to be distributed by the unionSrepublic authorities. Third, the planning of local budgets has been transferred from Moscow to the union-republic level. Finally, republic and local authorities will be permitted to make largerin social-cultural and municipal facilities outside the state plan for capitallthough these measures will furtherthe administration of the economy and provide greaterin the solution of local problems, the control of the Soviet economy remains highly centralized, with overercent of the funds allocated in6 budget for Financing the National Economy being controlled by Moscow and less thanercent being administered by the union-republic authorities.
i
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Voprosy ekonomiki, no 8, U. Eval. RR 1.
Planovoye khozyaystvo, no 1,. V'f Eval. RRerkhovnyy Sovet SSSR. Zasedaniya verkhovnogo
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CIA/RRhe Soviet Sixth Five-Year Plan
6 S. . Voprosy ekonomiki, no U. Eval. RR 1.
Izvestiya, U. Eval.
USSR, Verkhovnyy Sovet SSSR. Zasedaniya verkhovncgo
soveta SSSR, stenograiicheskiy otchet (Proceedings of the Supreme Soviet of the USSR. StenographicMoscow,
,. U. Eval.referred to as USSR, Verkhovnyy Sovet
State, Moscow. 0 S. .
ekonomiki, no 6,. 5. U. Eval. RRkhozyaystvo, no 3,. U. Eval.. N. Qcherki istorij byudzheta sovetskogo
gosudarstva (Essays on the History of the Budget of the Sovietoscow, Goefinizdat,.. U. Eval. RRSSR, Verkhovnyy Sovet SSSR. Zasedaniya verkhovnogo soveta SSSR, atenograficheskiy otchet (Proceedings of the Supreme Soviet of the USSR, Stenographicoscow,
14. U. Eval. Doc. (hereafter referred toVerkhovnyy Sovet SSSR.
Verkhovnyy Sovet SSSR. , above),
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.ekonomiki, no 6,. 5. U. Eval. RRVerkhovnyy Sovet SSSR. Zasedaniya verkhovnogo
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| BIS, Daily Report (USSR and Eastern. OFF USE.Eval.rlotnikov,bove).
CIA. ORRoviet National Accounts in Current3 (to be published). S.
Verkhovnyy Sovet SSSR. bove).
, W. oc. Sotsialistichcskoyo sel'skoye khozyaystvo, no 6,
U. Eval. RR Voprosy ekonomiki. no. 5. U. Eval. RR 1.
P'.ar.ovoye khozyaystvo, no 2, U. Eval. RRinansy SSSR, no 3,. 9. U. Eval. RRo 2, U. Eval. RR 1.
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12.
15.
19.
20.
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54,
Eval. RR 1.
23. U. Eval. RR 1.
OFF USE. Eval. RRzvestiya.. 5. U. Eval. Doc. USSR, Verkhovnyy Sovet SSSR. ,. U. Eval. Doc. State, Moscow, , OFF USE. Eval. RRaravayev, V. V. Sotaial'noyeSSR (Social Insurance in theoscow, U. Eval. RRlanovoye khozyaystvo, nozvestiya, U. TEval. Doc. Finansy SSSR, no 3,. 9- V. Eval. RRlanovoye khozyaystvo, no 1,. Izveatiya, U. Eval. Doc.9 U. Eval. Doc. U. Eval. Doc. U. Eval. Doc. U. Eval. Doc. U. Eval. Doc.
USSR, Verkhovnyy Sovet SSSR. Zaaedaniya verkhovnogo soveta SSSR, stenograf icheskiy otchet (Proceedings of the Supreme Soviet of the USSR, Stenographic U. Eval.ereafter referred to as USSR, Verkhovnyy Sovet SSSR.
Pravda, U. Eval. Doc.
1" U. Eval. Doc.
0 U. Eval. Doc.
Pravda, U. Eval. Doc.
Isvsstiya, U. Eval. Doc.
oscow. C. Eval. RR 2.
State. Moscow. , OFF USE. Eval. RR 2
Planovoye khozyaystvo. no U. Eval. RR 1.
o 3, TJ. Eval. RR 1.
Aleksandrov, A. M. Finansy SSSR (USSRd edn,
U. U.
Eval, RRval. RR 1.
U. Eval. RR 1.
Eval. RR. Eval. RR 1.
Moscow,. U. Eval. RRoprosy okonomiki, no 6.. 5. U. Eval. RRlanovoye khogyayBtvo, nolanovoye khoayaystvo,,o U. Eval. RRzvestiya, U. Eval. Doc. Planovoye khozyaystvo, no 1,oprosy ekonomiki. no 1,. U. fljanovoys khozyaystvo, noo U. Eval. RRbid.
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R 1.
SSSR, no 1,. U. Eval. RRlanovoye khozyaystvo, no 1. U. Eval. RRSSR, Verkhovnyy Sovet SSSR. bove). U. Eval. Doc.
47.
48.
49.
57.
58.
59.
Doc.
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Karavayev, op.j:v U. Eval. RRVOprbsy yned^enlya khozyaystvennogo
f Introducing khoaraschet
in theoprosy.ekonomiki, no
*:
D'yschenko, V. b"yektivnyye(Objective Bases of khozraschet),nov
Izvestiya, U. Eval. RR.
CIA. CIA/RR, Soviet Foreign Trade3,. S.
redlt SSSR,, U. R 1.
Izvestiya,ec 55
Genkin, D. M. Jravoyyye-vpproay vneshney torgovlievropeyskimi stranami narodnoy demokratJl (Legal Problems of USSR Foreign Trade with the European Peoplesoscow, U. Eval. RR 1.
Eval. Doc.
Planovoye khozyaystvo, no 3,.
RR>bove),
RR 1.
28. val. RR U. lanovoye khozyaystvo, no U. Eval. USSR, Verkhovnyy Sovet SSSR. Zasedaniya, . U. Eval, Doc; . ovefkiye finansy, U. Evai. RRtate, Moscow. 0 S. , Planovoye khozyayatvo, no- U. Eval. Voprosy ekonomiki, no val. RRSSR, Verkhovnyy Sovot SSSR.. above.),
; val. Doc. [ BIS, Daily Report (USSR, and Eastern6
p. CC-9. OFF USE. Eval. RR
USSR, Verkhovnyy Sovet SSSR. . U. Eval. Doc.
. U. Eval. Doc. USSR, Verkhovnyy Sovet SSSR.
.Plotnikov,zvestiya,' U. Eval. Doc.
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Uv Eval. RR 2.
61,
66.
67.
68.
69.
70.
71.
72.
78.
USSR, Verkhovnyy. Sovet SSSR. .val,
Planovoye khozyaystvo, no U. Eval. RR 1.
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Planovoye khozyaystvo. no 2,. val, RR 1.
Finansy SSSR. u. Eval. RR 1.
USSR, Verkhovnyy Sovet SSSR. bbve),
U. Eval. Doc.
Izvestiya, U. Eval. Doc.
U.
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Planovoye khozyaystvo. no 1,.nd 28
Eval. U. Eval.val.
Planovoye khozyaystvo. no.. .Eval. RR 1.
FDD Summary, Annual Report on C. Eval. RR 2.
. Annual Report on USSR Republic,
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Izvestiya, U. Eval. Doc.
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FBIS, Daily Report (USSR and. OFF USE. Eval. RRN.N. Goaudarstvennyy bvudzhetStateoscow,. Eval. RR
USSR, Verkhovnyy Sovet SSSR. bove),
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. V. Evai; Doc. . -
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USSR, Verkhovnyy Sovet SSSR. U. Eval.
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Planovoye khozyaystvo no 2,.. Eval. RR 1.
Izvestiya, U. Eval. Doc.
9 U. Eval. Doc.
Planovoye khozyaystvo. no 3, U. Eval. RRSSR, Verkhovnyy Sovet SSSR. bove).
. U. Eval. Doc.
Planovoye khozyaystvo. no u. Eval. RR. U. Eval. RR l.
CIA.,5 Soviet Budget.. TS '
Ibid.
Expenditures in the Soviet TS[
CIA. he Location of Atomic Energy
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88.
Verkhovnyy Sovet U. Eval.
Finansy SSSR. no 5.. U. Eval.
Izveatlya. U. Evai. Doc.
Kommun-st. no U. Eval.
Flnanay SSSR, no Eval. RR 1'.
Motov,ndShul'ts, L. Flnanaovoyeovkhozakh (Financial Planning on Stateoscow.. U; Eval. RR 1.
Voprosy ekonomlki, no 1,. 6. U. -EvaL-RR 1.
Planovoye Rhozyaystyo, U. Eval. RR 1.
Voprouyekonomiki, no'9 So*U. Eval. RR 1. J
HV'4(
vnn, v. Gos'udarBivehnyy'byudzhet SSSRtUSSRStateoscow,. U. Eval. RR 1. Ti *u
94,
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97.
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Vishhevskiy,ndmahsiroVantye1 kfedltovanlye meroprjyatli po porcselenlyu (Financing and Crediting Measures foroscow,U. ' Finansy SSSR, no ^ MokhOrt, I. RaBchety organizatsll zagotzerhagosudarstvennym bVudzhotom (Accounts of Grain"Procure-ment Organizations with pie State Budget),'Moscow, U. Evnl.'RR i. ,. Organ! zatsiyafinansovogost erne- zagotskot (Financial Organization in the System of Cattled edh, Moscow,l. Evai: ffi^gtggS^ Ibid.
^Mokhort, op., above). 1
Mukomol'no-clcvatornaya6. U. Eval. RR
2. /Evai/'bocV /
:
USSR. Verkhovnyy Sovet SSSR. Zasedaniya verkhovnogo
soveta SSSR. stenograftcheBkly otchet (Proceedings ofpreme Soviet of the USSR, Stenographic. if. -Eval. Doc. (hereafterto as USSR, Verkhovnyy Sovet SSSR.
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TOP SECRET
.
.
.
.
.
.
.
A.M. Meahdunarodnyyoroditnyye ofnosheniya vo vneshnoy lorgovle SSSR (International Accounts and Credit Relations in USSR Foreignoscow,.val. RR 1.
Genkin, op.. U. Eval. RR ORRepresentative(to be published),
Levi
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CIA. ORRstimation of Fixed Capital
Stocks in ths USSR (to be published). C.
USSR, Verkhovnyy Sovet
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Voprosy ekonomjki, U. Eval.IA. ORRIA. ORRoviet Investment Policy and
Selective Analysis of Investment Statistics (to be published).
S.
CIA. ORRIA. CIA/RRoviet Capabilities and Probable Courses of Action. lanovoye khozyaystvo. no U. Eval. RR7 U. Eval. Doc. Ibid.
CIA. ostwar Investments in OFF USE.
Finansy SSSR. no U. Eval. RR 1.
Rovinskiy,,.. U. Eval. RR i
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USSR, Verkhovnyy Sovet SSSR. Zasedaniya verkhovnogo soveta SSSR. stenograf icbeskiy otchet (Proceedings of the Supreme Soviet of the USSR, Stenographic U. Eval. Doc. (hereafter referred to as USSR, Verkhovnyy Sovet SSSR.. :
Voprosy ekonomiki. U. Eval. RR 1.
izvestiya, U. Eval. Doc.
USSR, Verkhovnyy Sovet SSSR. Zasedaniya, U. Eval. Doc.redit. no U. Eval. RRew York Times. U. Eval. RRSSR, Verkhovnyy Sovet SSSR. Zasedaniya.
u. Eval. Doc.
Finansy SSsK, no. Eval. RR I.
SSSR, no
RR 1.
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TOP^RE'
bi- KufB-prornyaMejinogo'-ucheya (Course
in Industrialoscow, Gosplanizdat, 19 U. Evalv
^.Bunimovich, V. A. Sebestoimost'oprosyromyshleiinosti SSSR (Cdst-ofand Problems of Calculation in USSR-Industry),. Moscow,' U. ByaT.-RR 1.
A.M. Finansy SSSR (USSR Finances).
v . U. Eval. RR 1.
Zhebrak,bove).
Rovinskiy,. U. "Eval.1.
. ' ' .
Aleksandrov, opVbove)..
Shavrin, on..val. RR'-l. USSR, Verkhovnyy Sovet SSSR.
abpvej, U.oc. :
,. U. Eval. "RRS. M. Analiz balansaaskhodov
khozyaystvennoy organizatsii (Analysis of the Balance :'* of Revenues and Expenditures of;the. EconomicMoscow,. val. RRil.
Verkhovnyy Sovet SSSR. rabove),
. U. Eval.
Jsvestiya, U. Eval.
9 U. Eval.
Verkhovnyy Sovet SSSR. U. Eval. . Eval. RR 2.
SSR/ Verkhovnyy Sovet SSSR. , Eval;.
- USSR, Verkhovnyy SovetU. Eval. Doc."
Izvestiya..Eval. ;"
-Ibid,
Finansy SSSR,U.Eval. RR 1. V
-Izvestiya,val; DOC. :
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USSR, Verkhovnyy Sovet SSSR."
val. ;Doc." ./
. U^
, Soviet Defense
p. 4. TS - 'v
Pravda, yal.
CIA. U TS
CIA. CIA/RR RAJ^.'Thebry! and Application ofithe Learning
CIA. ,.
^
TS
TS
A
th. USSR, 23
. lnalR,port0Dpf,,WfU,T
.
.
iviu.COW. 0
UKKapital Investments, Policies and Conditions of Housing in the Sovietto be published). OFF USE. Izvestiya, U. Eval. Doc.9 U. Eval. Doc.
Finansy SSSR, no 2, U. Eval. RRzvestiya, U. Eval. Doc.
Finansy SSSR, no. U. Eval. RR 1.
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Original document.
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