OUTLAYS ON CONSUMER SERVICES IN THE USSR, 1948-60 (RR 150)

Created: 11/1/1958

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ECONOMIC INTELLIGENCE. REPORT

GUTE&YS ONvCONSUMER SERVICES IN THE

NTELLIGENCE AGENCY

OFFICE OF RESEARCH AND REPORTS

This report describes outlays on consuncr services In the USSR,xamining in detail the relutive importance of the various services and comparing the roles of public Organizations and private Individuals In furnishing these services. All estimates have been made in terms5 prices- The inforiw-tion upon which the report is based has been derived from published Soviet daLa.

Sumoiary and

I. Introduction

of Consumer Services Adopted for This

Report

pa riser, with US Expenditures on Services Reliability of

II

A.

B- Outlays on Education by5

on Education by5

on Education by Type of Cost,

III.

on Health by Organization,

on Health by Function,

on Health by Type of Cost,

IV.

A. Outlays on Housing by

3- Outlays on Housing by5

V. Other Consumer Services

Appendixes

Appendix A. Statistical Tables

Appendix B.

Appendix C. Source

Outlays on Consumer Serviceshe USSR,

Indexes of Per Capita Outlays on

Consumer Services in the USSR,

3- Estinated Ratios of Outlays on Consumer

Services to Gross National Product in the

USSR, Selected

U. Estimated Percentage Composition of Outlays on

Consumer Services in the USSR,

5- Estimated Public Outlays on Consumer Services in the

USSR,

Private Outlays on Consumer Services in the

USSR,

Outlays on Education in the USSR, by Type

Cf Cost,

Outlays onhe USSR. By Type

OUTLAYS ON COKSuTCR SERVICES IN THE

Summary and Conclusions

It ia estimated that,utlays on consumer services in the USSR will have increased8illion rublesimes thc level8er capita increaseimes. (See Table

ducation accounted forercent of outlays onservices, health forercent, housing maintenance andforercent, and all the othersousehold operations, personal transportation, recreation and culture, repair services, and personal car.'forercent.

onsumer services which were already establishedroad scale, such as education and health, or those considered of secondary importance by the Soviet planners increased relatively little er capita basis, outlays on education8 were- o2 percent of thosend5hen consumer serviceshole are expected to rise byercenthey are expected to rise by onlyercent. Outlays on healthereercent of those-er capita basis, and50 arc expected to rise byercent. (See

Outlays on housing maintenance and construction didhose or igUS beingercenter capita basis. 7 the Soviet government issued aif implemented expected, will placeloseervices Housing activity0 .. / : on a

basis. Household expenditures on utilities and communicationsthe general trend in housing but should not rise so steeply - '.

er capita basis, willercent higher0

* The estimates ani conclusions in this report represent the best judgment oi' thit Office as

ll ru'-'le values in this report for years other5 were obtained by3 prices to the quantities Of serviceso have been supplied in the other years.

Appendix A,

Appendix A, p. Xy, bslow.

Personal Lrani.porta.tior; is one of the rapidly growing consumer On apitautlays On personal transportation5 were more than double the lvkb level,uriher rise ofercent is forecast n recreational and cultural

service, union alnost doubled per capita between igti85 win advar.ee, it is estimated. Onlyercent5 one of the reasons for this slowing down of growth ia that existingand recreational facilities are already well developed and further expansion of libraries, clubs, and religious facilities is accordingly not of pressing importance. er capita basis, out-Jays on repair serviceswhich include such activities as tailoring and the repair Of nousohold appliances8 wereercent5 and will be ar. estimatedercent above5 levelersonal care shows the sralleat increase of any of the household services. In lQUG, outlays On personal care wereercent of theapita level attainednd it is estimated that0 level will be onlyercent above that

Although the estimated value of Soviet Consumer5 prices, has increased each year duringcon-

; .r'.^J : v<?d

steadyevel of av.proxiuat.ely one-sixth of OK?. Ordinarilyexpect that conervices in an

ductrializeu and urbanized wouldrowing proportion ofut consumer Services in the USSR have claim on resources only to the extent that they support the growthealthy, well-educated,

-i .

j JJ. of the

of consumer services, and private individuals one-third. The' ; hwvvr .

igh ofercent0 toercent Publicar? extremely important in education anc health (estinated ftercent andercent, respectively,nd cf considerable importance in housing and recreation and culture (estimatedndercent, respectively, . public Organizations pay none of the cost of household operations, personal transportation, repair services, and personal care.

1 - it rod notion.

A" gg-"ceptnsumer Services Adopted for This Report.

The categories of Soviet consumer services included in this reixjrt are education, health, housing, household operations,transportation, recreation and culture, repair services, and personal care. The outlay on each consumer service is taken as the economic value of the service at the final stage ofhether the service was purchased directly by a

the serviceoney transaction or was the result ofby the producer (and therefore fell outside of nomal

markethether the service arising front thewas consuned immediately oreriod of years.

The first consideration, of private versus public outlay, is exemplified by the situation in education,ercent of thefor education being made through the budgets of publicandercent through household budgets. The secondof actual versus imputed outlay, is exemplified by it being necessary to estimate the value cf the maintenance or private housing performed by individual owners operating outside of any direct tie to the market. The third consideration, of present versus future consumption, arises most strongly in the case ofI'iealth, recreation and welfare, and, especially, housing. The erection cf new schools, hospitals, libraries, and apartment(over and above those retired from use) represents the use of economic resources to broaden the flow of services to the consumer. The using up of thcae services by tho consumer, however, takes place onlyeriod cf Lime, and tho consumer's well-being in the current year is increased by only a. fraction of the value Of the economic resources currently being allocated ir. his behalf. Anof including such "investment" in consumer facilities within totals that this procedure puts economic policy toward the consumer in clearer perspective. The new Soviet housing program, for example, will cause per capita outlays or. housing to more than double0 comparedut the rise would not be nearlynlyercentif measured in terns of the flow of housing services from the existing housing stock. If, inhe per capita index for housing were madenstead, the index for total Cervices wouldnstead.

It is only in thc case of housing that thereurkedbetween the results obtained by the trethod used in this report and the results obtained by the alternative method of using flows of services. For instance, in the case cf health and education, as shown in* theall category "construction" sets the upper limit to the portion of total outlays going to

!!- Comparisons with US Expenditures on Services.

* Appendix A,elow. ** Appendix A, pp.espectively, below. The economic outlays listed for household operations,repair services, and personal care are believed to cover the maintenance of capital plant, but the expansion of capital plantnew watcrlines, buses, tailor shops, and barber shopsis not covered; data are lacking, and the amounts involved arc small.

Comparison of Soviet expenditures on consumer services withi: thc U3 is made difficult because of great variations in the relative values of the ruble and thc dollar in the different sectors of the two economics as well as important differences in

governmental policy on the financial support of services. The USSRopulation almostercent greater than the populationhe US, maintains an educational system of roughly the same size, measured by numbers of children and young people in the various grades, numbers of teachers, and the level of physicalf USSiJ is Lo percent that of the US, the educational

ticn in the US, hovever, are more diffused in contrast to those or Soviet education, whose overriding objective is to train workers and professionals for their roles as producers in the Soviet state.

Medical care In the USSR Is quantitatively comparable tc care in the US, and the large gap in quality is being steadily reduced. Cocpured with the US, where private medical carear greater proportion of Soviet energies are devoted to public health, including industrial medicine. In dental care the USSR lags farhaving onlyercent as many dentists as in the US to careopulation almostercent larger.

En housing the Soviet consumer is far worse off than his US

wtr-

(sc. m) of living space compared withn the US, andsuperior quality of "JS housing makes the differencedramatic. In transportation the ratio in favor of the USia alson terms of passenger milesand considerably more if the convenience-and comfort of theautomobile is contrasted with the Sovietcoach. In most other consumer services the US consumerthe Soviet consumer, but in welfare and culturalnich in the USSR are an iiraportaat Instrumenthe Soviet consumer benefits from heavy

- jjeljubi:f Estimates.

etailed discussion of the manner in which estimates were made, including specific estimates for each category of service, see the Methodology, Appendix B.

Estimates in this report vary widely in reliability.' 5 are in general more reliable than for other years, because money outlays5 are often available directly froa official Soviethereas estimates for other years wereby5 prices to the quantities of servicesto have been supplied ln the other years. Estimates for the public sector are often more reliable than for the private, because statistical data on public expenditures are far more plentiful than data on private expenditures. In general, the larger the rublethe higher the degree of reliability.

II. Education.

A. General -

1 the Soviet standard of education hasear secondary education for all children. year schooling has in fact become normal in urbanear schooling has been typical in rural areas. 8 the Sovietyear compulsory Schooling would be rapidly extended tc rural areas. Eachraduates of the secondary schools are admitted tc institutions of higher learning, whichotal enrollmentillion students.

Outlays on education amounted9 billion rublesverillion rubles more thans shown inc, outlays on education are expected to reachubles, orercent One .reason for the rela-

I . compared withjr

consumeras been thc decline in enrollments. The number Of regular rjpljs and students enrolled in the educational system dropped3 million9 millionesult of manpower losses during World War II and the resulting decline in births. Another reason for the relatively small rate of increase in education is the fact that educational facilities were already fairly well developed

hereublicolleges and universities,cientificin the USSR. 2/ These facilities are used very intensively, and further expansion in the scope and standards of Soviet education will, require continuing increases in expenditures on education.

Outlays cr. Education by

Soviet outlays on educationy organization, are shown in the following tabulation:

Value

Rubles)

* Tableelow, gives aggregative expenditures on Tableelow, gives expenditures on education divided among wages, materials, and construction.

For serially numbered source references, see Appendix C.

Total

State outlays6 billion rubles come from the state budget. Enterprise outlaysillion rubies come from publiclyfunds,illion rublea belnt; accounted for by the various state industrial ministries, "'lie balance of enterprise outlaysillion rubles couss I'rosi othered andorganizations, trade unions accountingillion rubles, industrial cooperativesillion rubles, andfarmsillion rubluC. There are no private schools in the Soviet education system. rivate expenditures on education in the USSR amountedillion rubles,ercent of all education outlays. ivale expenditures are made for food, special fees, and the breakage of tquitmsnt. Tuitionharge of the past, except in the newly instituted boarding schools. Almost all students in higher education receive stipends from the state.

C. Outlays on Education by

Soviet outlays on educationy function, arc shown In the following tabulation:

Science

9

The largest outlays are those for general education, amounting3 billion rublesthe sumillion rubles for preschool7 billion rubies for elementary and secondary schools,illion rubles for extracurricular activities. activities consist of suneier playgrounds, pioneer camps, and. schoolchildren's tours. Enrollments were the largest in general education. 1 million pupils and students were enrolled in the public schools, and5 the kindergartensillion children. }J

Outlays for higher education5 amounted0 billion rubles. These outlays for higher education Include expenditures for specialized secondary schools (technicvur.s) as well as expenditures for colleges and universities. Specialized secondary schools, with an enrollmentillion, train scmiprofessionalsuch as toolmakers, laboratory assistants, and nurses. Colleges and universities, with an enrollmentillion, train professional personnel such as engineers and4/

Outlays on science educationmounting6 billion rubles, include expenditures fornd university research, the

research of scientific Institutes, snd long-range industrial research. That part or Soviet industrial research whichirect cost of production is not included under this heading.

D. Outlays on Education by Tyy of

Soviet outlays on educationy type of cost, were made up mainly cf wages and operating caterials and supplies. Less thanercent of all education costs were accounted for byas shown in the following tabulation:

Value

Type ofRubles)

Operating caterials and

Outlays or. education for wages5 amounted toillion rubles, the sum of payments to the teachers. Janitors, and the administrative workers, as well au stipends, hourly payments for teaching special courses, and payments to thc state budget for social insurance. Wages vary widely. Mean wages of teachers In grade schools, including overtime and extra pay,ubles Th? basic payirectorniversity with the title oT pro'essor andoctor of Science degree0 rubles per The comparable spread ln thc USootoha Scvict teacher without administrative responsibilityocut equal to thatemlskil led laborer.

III. Heal th.

A. General.

Soviet outlays on health amounted1 billion rubleslmostllllor. rubles more than'B, as shown in Outlays on health ure expected toublesrercentnd health,onsumer service, will drop to third place behind housing.

here0 hospitalsillion0etniprofessionals,0 pharmacists In the USSR. 6/

* Teniaelcw, gives aggregative expenditures on health. Tableelow, elves expenditures on health divided among HBfljHj Materials, and construction.

B. Outlays on Health by

Outlays on healthy organization, are shown in the following tabulation:

Value

Rubles)

State outlays on health amounted0 billion rubles, or three-fourths of total health outlays The outlays by enterprises on healthillion rubles come from publicly controlled funds,

i "n"'. usir

illion rubles by industrial cooperatives,illion rubles by collective farms. rivate expenditures on health amountedillionillion rubles being for medicines und drugs,illion rubles for passes to sanatoria and rest homes,billion rubles for nursery fees. Despite persistent reports of private health practice and black marketing in medicines and drugs, there arc no indications that, these activities are significant in scope.

C. Outlays on Health by

Outlays on health by function5 were predominantly" '

lowing

Value

Rubles j

Hospitals and other health careand childof disabled, medicaland

'

5 outlays of almostillion rubles on hospitals and other health institutions include outpatient treatment and home visits.

D. Outlays on health by Type of

Outlays on health by type of cost5 are shown in thc following tabulation:

Value

Type ofLilian

Operating materials and

r. * .

i5 outlays9 billion rubles for wages are second to6 billion rubles for operating materials and supplies, withaccounting forillion rubles. The Second place of wages reflects the relatively low wage paid to the Sovietorker, including professional personnel, the mean wageubles for health workers being below the national mean wage0 rubles. 0/ Trained medical personnel with administrative duties, however, receive wages and Salaries equivalent toin the education system. The large outlays for materialseflection of the tremendous sire of the physical plant,

IV. Mousing.

A. CAitlays or. Housing by Organization,iO.

Outlays on housing amounted" billion rubles3 billion, rubles core than utlays on housing are expected tc reachillion rubles, almost as much as9 billion rubles to be spent on education This tremendous increase in outlays on housing is expected to be brought about under7 housing The outlays on housing0 arc to3 times the levelineser capita basis. he endccording to the Soviet plan, there will be more thanillionf livingn urban centers as compared with klk millionf living spacend by the end0 there will0 million houses in rural ureas as compared withillion houses Although this tremendous expansion will help to relieve substandard housinghousing has been neglected forong time that at leastrears will beo bring housing up to Soviet, standards of inininum health andf living space per person.

* See Tableppendix A, p. Ik, below. ** Living space excludes hallways, kitchens, baths, and all other

.

_

Outlays on housingy organisation, are shovn in Hie following tabulation:

(3illion Rubles)

Individual

iVaiic gross expenditures on housing5 amounted to rubles, net expendituresillion rubles afterrent receiptsillion rubies. oref new living space were completed by the stateillion rubles. It is estimated thatillion rubles to maintain public housing stockmillionf living space. xpenditures byhousing are estimated to haverublesthe sua ol

illion rubles for private urbanillion rubles for private rural housing,ubles for rent of public housing. Estimated expenditures by urban individualsillion rubles on private housing arc the sumillion rublesillionf newly constructed living space)illion rubles (for the maintenance of the private urban individual housing stock5 millionf living Space. Estimated individualon rural housingillion rubles are the sumillion rubles for 6oo,oco new housesillion rubles for the maintenance4 million houses.

V. Other Consumer Services.

onsumer services other than education, health,amounted toillion rublesore thans shown inon other

consumer services are expected to1 billion rublesrercent ercent of total outlays on consumer services, the outlays on other consumer services increased from l3 percentoercent in thed for tht, even with the tremendous increase in housing. It is expected that this relationship will be maintained at approximatelyercent, as shown in* er capita basis, outlays or; other consumer services0 compared5 are expected to increase byercent on household operations, hyercent on personal transportation, by lS percent on recreation and culture.

Appendix A,elow.

^onsuner Services in the USSR

^ Ruble

Service

Education

Health

Housing

Household operations Personal transportation Recreation and culture Repair services Personal care

Total

1 ll* .6

9 1

For methodology, see Appendix B,

- ik -

Indexes of Per Capita Outlays on Consumer Services in the USSR

Consumer Igg i ISSl 2 J: JJ 5 0

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5

operations

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transportation

j

and culture

:i

services

care

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Kst.imat.es of outlays on consumer expenditure in the USSR, IpLS-cC, in this report were based largelyoviet statisticalost important being Cultural Construction in tin? 'JSSlt and Health in the USSR. Information vas most completend all estimates for other years have been presented ir. terms5 prices. Other important sources were Soviet plan anncunce-

C: ;ig r. , ':"'i,

subject Lo considerable interpolation and manipulation by the analyst, "any assumptions and judgments were necessary to place thcin the context cf this report, especiallyhe case of private expenditures on services. All totals were derived from unrounded data and may not agree with the sua of the rounded estimates here presented*

The accuracy cf the estimates varies widely among the different categories of services. Data on experiditures'frooi the state budget on education, health, and recreation and culture are judged to bemost accurate information used, even though adjustmentsary in these data, as explained below. Outlays onalt!'. and recreation and culturenterprises and individuals

or. less reliable information, such as examplesSoviet accounting books of enterprise outlays for education. Estimates on the physical volume of housing are derived from Soviet sources and are thought accurate, but the ruble values perf living space arc subject to considerable error and information on the volume and cost of maintenance is scanty. In thc case of household operations, it was necessary to estimate consumer expenditureseries of utility and communications services, most of wiiich are used jointly by industry and private households. The sum cf theestimates is consistent with other, general information on thc place of household operations in total consumer expenditure. on private transportation are believed to be fairly accurate despite the necessity of estimating average fares and average length of trips. Outlays on tailoring and repair of clothing and household appliances are ^Iven in official retail trade Statistics. Estimates of outlays on personal care are based on rule-of-thumb judgments and are subject to great error, but thsse outlays are small compared with other consumer services.

For each of the eight categories of services, the method5 ruble value is described below, together with the general principles by wiiich values were estimated for the other years.

1. Outlays5 by Type of Organization.

Soviet outlays on education5 are the surr. of state budgetillionxpendituresillionnd private expftndituresillion rubles).

a. State.

State budget expenditures on education are the surr.(l) directly from education appropriations i:.

diture9 billion rubles5 was reducedillion rubles to exclude political education, art and radiobroadcasting, and publishing. Social insurance expenditures nude for educational purposes were estimatedillion rubles by5 social insurance expenditures3 billion rubles j't/ercent, which was the percentage shown for education in0 social insurance expenditure

0. Enterprise.

"Ihis category is the sum of expenditures made forby enterprises of industrial ministries, by industrialby trade unions, and by collective fari'is.

nterprises of Industrial Ministries.

Expenditures of enterprises for education weretoillion rubles based on the differenceillion rublebetween total state social-cultural expendituresnd total State social-cultural budget expenditures ofillion rubles. Althoughiillion rubles and theillion rubles are not strictly comparable, the differencethe magnitude of expenditures by industrial ministries for Social -cultural purposes. It is assumed that enterprise social-cultural ^xpi-nditures are for education and health oi'Jy and that education is the sane portion of health and education expenditures in enterprises

he state budget. t . is,

illion rubles being the sum of state budget expendituresand health9 billion rubles being the

: v .

tion were estimatedillion rubles basedartialof total Industrial cooperatives* soeiaj-welfare expendituresillion

Trade union expenditures for education were estimated at thc planned figureillion

ollective Fares.

Expenditures of collective farms for education were estimated toillion rubles, the suaillion rubles for new acnool constructionillion rubles for preschool activities. Hew school construction was estimatedillion rubles by multiplying thc number of new spaces providedubles, this price being half that shown for state construction onelow.

c. Individuals.

Fjcpendltures of individuals for education are the sum ofuardians', and students' payments for (l) part of thc costs of kindergartens and the training of preschool"retardedart of the costs of training of school-age retardedart of the costs of childrens* vacation playgrounds, andfees.

(l) Kindergartensreschool Retarded Children.

Parents' fees for kindergartens were estlrated toillion rubles by taxingercent of the sua of all

kindergarten expendituresillion rubles. percent fee which parents pay was taken from an example of kindergarten

(b) Preschool Retarded Children.

Individuals were estimated to have paid feesillion rubles for the training of preschool retarded children by emitinlying the number of children by the median fee charged. Fees for training retarded children were eu-.imatcd5 rubles per month per child, thc midpoint in the range of charges ofo UOO rubles set for institutions in the RSFSR Theof preschool retarded children was estimated toy taking half the average annuelf all retarded and orphan children less half the average annual'; of school-age retarded and orphan children.

chool-Age Retarded Children.

The fees Tor tbe training of retarded school-age children were estimated tcillion rubles by multiplyingubles per sooth per child and half of the average annual number of school-age retarded and orphan children, OM as explained In thc preceding paragraph.

liildrcns' vacation

Parents' payments for chlldrens' vacation playgrounds were arbitrarily estimated toillion rubles byf estimated food costs of the playgrounds ofillion.

ees.

Fees1 accountedercent of In lieu of later data, this figure has been adopted,illion rubles

2 - Outlays5 by Type of Fui:ctioii.

Soviet educational expenditures by function5 are the sum of expenditures on general educationillionigherillionnd scienceillion rubles). The detailed expenditures by the state, enterprises, and private individuals were taken and regrouped by type cf function. Two important items of information were that state budgeton public schools forhrough2 billionnd that state budget expenditure on higher education3 billionhird important bit of information was that the plannedor. science education6

ci. l:

penditure

3- Outlays5 by Type of Cost.

Soviet educational expenditures by type of cost5 sre the sum ofillionillionnd7 billion rubles). Information on the numbers in various categories of administrators, teachers, andas combined with information on the wageo get expenditures on wa^ea. Kany detailed assumptions were in piecing together the ;: or instance, assumptions as to the proportion of teachers who got extra pay for overtime, advanced degrees, and tiine-ir.-grade. 1'nc requiting suc-naryis a3 follows;

I'aid 3 eo'-^rnii :m% . Excluding social Wot including those receiving stipends or lecture fees.

Socialrase Annual

of Education

er.ee

.

cturc

tal

The most important item in construction io tlie estimate of State construction for general educationillion rubles,byew spaces provided for pupils 0 rubles, the cost per new pjpil space in the RSFSR during the Fifth Five fear Other items include state construction for science, higher education, and collective farms. Expenditures on (Materials was taken as the difference between total expenditures and expenditures on wa^es and construction.

L- Estimates for Years Other

Soviet outlays on education for years other5 were estimated by taking the number of teachers and other personnel cm-ployed in education in each year valued5 wages, the riumser of Students valued5 cost Of materials per Student, and the number Of new classrooms valued5 construction costs fror. data given in Cultural Constriction. jk/ The breakdown between public and private expenditures was derived byhe saiirebetween the two as was estimated

C-

1- Outlays5 by Type of Organization.

Soviet outlays on health5 -ire thef Slate budget0 billionxpenditures of6 billionnd private5 billion rubles).

State budget expenditures on health are the sum of [l] directly from health accounts unc from socia! accounts. The state budget health expenditures5 were reducedillion rubles to exclude sports and physical culture. Social insurance expenditures made for health purposes, plannedillion rubles,were reducedillion rubles to exclude sports and physical culture.

by industrial ministries, by industrial cooperatives, and byfarms.

(l) Enterprises of Industrial Ministries.

Expenditures of enterprises for health weretoillion rubles, the difference between total public health expenditures4 billion rublesillion rubles for snorts and physical culture) and state ortjanizationulfor health0 billion rubles. Total public expenditures ofillion rubles were obtained by5 state

budget health expenditures2 billion rubles by thc relationship shown" of total public health expenditures7 billiono the state budget health expenditures9 billion

rubles. 3O/

Cooperatives.

cf r: 1. for health :

estimated toillion rubles, basedartial breakdown of total industrial ec-operatives' social-welfare expenditures/

Faros.

Expenditurer of collective farms for health weretoillion rubles, the sumillion rubles for health servicesillion rubles for new construction. Wwieyof collective farms6 billion rubles5 andubies6 Uof; expenditures of collective farns on health services arc estimated toillion rublesut of total cultural expenditures of lA billion; proportionalon health services inwould haveillion rubles. Collective farms' new hospital construction was estimated toby multiplying an0 new rural hospital beds0 rubles, this price being the same as that shown for stateof hospital, beds onelow.

c. individuals.

Expenditures of individuals for health are the sum ofand drug8 billion rubles) and7 billion rubles? paid for passes to health resorts, sanatoriums, rest homes, and nurseries.

and Drug Sales.

Sales of medicines and drugs were givenillion

Fees paid for passes to health resorts, sanatoriums, and rest homes were estimated toillion rubles from thethat the nonprivate share of total estimated expensesrubles wasercent, leavingercent as the private share. W

as .. the

..- CI' ivn / 'j-.y, planned

fee of 6'iQ rubles per/

2. Outlays5 by Type of Function.

Soviet heulth expenditures by function5 are the sum .'. n ho-pi tal nisei "thori nns il-lionaternity and child2 billionillion1 billionare Of the disabled, medical administration, and5 billionnd medicines and8 billion rubies). This breakdown was obtained by multiplyingO billion rubles of total public health expenditures (excluding sports and physical culture) by

-

ercent for hospitals and other health institutions;0 percent for maternity and child care;ercent for sanitation;ercent for training; andercc-nt for disabled, medical administration, and other, according to7 Plan for the Other enterprise expenditures for healthillion rublesillion rubles by collective farmsillion rubles by industrial cooperatives) were added to "hospitals and other healthsillion rubles paid by illion rubles for nursery fees paid bywere added to "maternity and child care." The figure for medicines and drugs was derived as Shown on, above.

3. Outlays iny Type of Cost.

Soviet health expenditures by type of cost5 are the sum ofillionillionnd6 billion rubles).

Expenditures for health wages and salaries were estimated to9 billion rubles, the sum ofillion rubles) and Social1 billion rubles). Jages6 billion rubles were obtained by multiplying5 state health budget2 billion/1 percent, the percent shown for wages in7 RSFSR health These wageshe amount paid to the state budget for social insurance by the health system.

This category was estimated to6 billion rubles, the difference between the sum of9 billion rubles) and6 billion rubles) and total healthillion rabies).

Health expenditures for construction were estimated toillion rubles, the sumillion rubles for stateillion rubles for collective farms. State health5 ws obtained byospital beds and places in nurseries0 rubles. 0 rubles was the result of dividing total Fifth Five Year Plan healthillionyospital beds and places lnhe totaleds and places added during the Plan, illion rubles for collective farms was

I-. Estimates for Years Other

Soviet outlays on health for years other5 wereby taking the number of persons employed in health in each year

valued5 va&es, the materials valued5 costs perd, und the increments ofer of hospital beds and nursery accomodations valued5 construction costs from data given in the ilealtii Handbook and theve Year Plan for The breakdown Uetween jtubiic and private expenditures was derived by usiiifi the saire relationship between the two as was estimated

D. Housing.

Soviet outlays on housing iny organizationillion rubles) are the sum of outlays for construction and maintenance made by the state and by individuals- Wet state expenditures onillion rubles) are tho difference between totaland consumer outlays on housing.

1. Total Outlays.

Total outlays onie Jium of expenditures for construction and for maintenance by the state, by urban individuals, and by rural individuals.

State gross expenditures on housing were estimated tobillion rubles, the sum7 billion rubles for j

ticn expenditures on housing were obtained'by multiplyingrubles (cost per so m) 5jf5 millionf newly constructed living space,5 millioneing il percent (the percent of living space to total state housing0 millionf total new housing space. 5Jj/ State maintenance expenditures on housing were obtained byercent ol replacement costs of state housing stockillionf state living0 rubies per

Individual.

Urban individual expenditures on housingillion rubles, the sumillion rubles forconstructionillion rubles for maintenance. housing . r< obtained jy

ubles {cost per sqillionf newly constructed living space,illion beingercent (the percent of living space to total space in privateillionf total new urban private housing Urban individual maintenance expenditures on housing were ootained byercent of replacement cost average of urban individual housing stockillionf livingubles per Sq in.

Rural individual expenditures on housing vere estimated to be billion rubles, the subillion rubles for completed constructionillion rubles for maintenance. Rural individual construction expenditures on housing were obtained byew0 rubles (cost per Rural individual maintenance expenditures on housing were obtained byercent of replacement costs of uvoroge rural individual housing stock4 Million0 rubles per house.

2. Consumer Outlays.

Consumer expenditures on housing are the sum of rent andfor individual construction and maintenance.

Rent was estlaated toillion rubles by nultl-plylng the state housing stockillionf living space by the le-al rentubles per year perf living

Construction ami Maintenance.

This category wan estimated to0 billion rubles, the sumillion rubles for urban individual outlaysillion rubles for rural individual outlays explained in, and I, c, above.

3- Estimates for Years

Soviet outlays on housing for years otherstimated by taking the physical volume of housing construction and maintenance valued5 costs. Data on physical voluoe of both public and private housing space were derived froa data given ln the National Economy Handbook and the7 housing

E. (outehold Operations.

Soviet consusxtr expenditures on household operationsillion rubles) are the sum of expenditures for1 billion rubles) and conmunlcatlont6 billion rubles). (The seeming discrepancy ln the total is due to theof the components.)

1. Electricity.

Consumer expenditures for electricity were estimated toillion rubles byillion kilowatt-hours by

Consumer expenditures for water were estimated torubles vjillion cubic meters byased on prewar water consumptionnd water consumption.

Gas.

Consumer expenditures for gas were estimated torubles by multiplying one-third of the natural gas productionillion cubic meters and one-half of the shale gas production- billion cubic meters byhe quantities being based on Sixth Five Year Plan

4. n s.

Consumer expenditures on communications were estimated toillion rubles by nultiplying the total revenues of the Ministry of Communicationsillion5 percent. expendituresercent of the revenues of the Ministry of Communications were believed to account for mere thanercent but

Estimates for Years Other

Consumer expenditures for household operations5 were estimated from output data valued at Data on the production of electricity and gas werethe Industrialnd the Sixth Five Yearor. water consumption ware given in the RSFSRdata onervices were given in theHandbook and the Transportation and Communications "

F- Personal Transportation-

Soviet consumer expenditures on personal transportation inwere estimated to5 billion rubles: illion rubles for local and long-distanceillion rubles forbuses, taxis, and privateillion rubles far riverillion rubles for ocean transportation;illion rubles for air transportation from data given in thenal Economy Handbook and the Transportation and Communications

same sources.

C gecroi.tiuri and 'ulturc.

Soviet outlays on recreation and culture5 sre the sum of expenditures for admissions paid to the places of entertainment (bV> billion rubles'. State budget expenditures for welfare services and sportsillionnd private expenditures for6 billion rubles).

Consumer expenditures for admissions to places ofwere estimatedW report to bebillJon rubleshe sumillion rubles for urbanillion rubles for mralillion rubies forillion rubles for circuses,illion rubles for museums and

2. State Budget.

State budget expenditures for culture were estimated toillion rubles, the Sur.illion rubles from the education jud;et for libraries, clubs, and other cultural activities asin the methodology in d,, uoovc,illlcn rubles i'roc the state health budget for sports and physical culture as , a, &bov( .

e^.

Consumer expenditures on religion were estimated to< million rubles byillion (the number of active church members) by their annual contributionubles. The estimateillion active church members was derived c; taking one-fourth of the reportedillion affiliated with religion in theillion members of the Russian Orthodoxndmillion) on the basisersons per faniiy and estimating that one-third contained an active church supporter.

4. Estimates for Years Other

;onsumer expenditures on recreation and culture for years other5 were estimated from attendance data at recreation facilities and bud-et data in terms5 prices. lXita onat cinemas, theaters, circuses, muse-urns, and other recreation facilities vera given in Culturalnd the Sixth

Y..ar Plan for cinemas. Culture and welfare estimates wereuae budget data given Ir Cultural Consumer expenditures on religion vers held at the levellays for all years, on the basis that support of existing facilities is being maintained but not increased.

H. Repair Services.

Soviet consumer expenditures on repair services were estimated to bel billlcn rubles,nterpolated from dataillion rubles0illion rubles' giving an average annual rate of growthercent. This constant rate was then used to extend consucter expenditures on repair services

Soviet consumer expenditures on personal care are taken as the sum of expenditures for5 billionublic8 billionnd2 billion rubles).

1. Hairdressing.

Consumer expenditures for hairdressing were estimated toillion rubles byillion visitsubles, the average amount chargedaircut in Moscow, Oh/ illion visits was estimated on the basis of employment in allof industrial cooperatives of less It was

e :v than, OX dre ssers :n the

USSR5 whoear providing service foreople per day.

^. Public Baths.

Consumer expenditures for public baths were estimated toillion rubles by multiplyingillion public admissions0 The number of public bath admissions wasby interpolating the admissions given as8 and aso9 public bath admissions and by increasing the number9 admissions to bathsercent

he increase given for the number of public baths in

the RSFSR as

3 Laundcr.ing.

Consumer expenditures for laundering were estimated toillion rubles byillion kilograms of laundryubles (cost per Theillion kilograms of laundry were estimated by interpolating the kilograms of laundry as8 and asanuary lOai to9rams of laundry aridhe

. soy

^. Estimates for Years Other

Consumer expenditures for persor.ul care for years other5 -ere estimated from data en population, bath admissions, and kilograms of laundry valued5 prices. Hairdressing wasby the trend of the urban population. Admissions to public baths and kilograms of laundry were estimated from data given in the RSFSR

Original document.

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