USSR: Measures of Economic Growth and Development, 1950-80

Approved for Release: 2019/07/19 C05210421
d. Municipal and related services. (1) Culture outlays are estimated
at 1.180 billion rub|es——the sum of wages (0.839 billion rubles),
social insurance deductions (0.046 billion rubles), and other current
outlays (0.295 billion rubles). The wage bill is derived from
employment (0.824 million—Narkhoz 1978, p. 366) and the aver-
age wage rate (84.8 rubles per month-—Ibid, p. 372). Social
insurance deductions are calculated at 5.5 percent of the wage bill
(CIA, GNP I970, p. 52). Other current outlays are assumed to be
one-fourth of total current outlays.
(2) Municipal services are estimated at 0.628 billion rub1es—the
sum of wages (0.450 billion rubles), social insurance deductions
(0.021 billion rubles), and other current outlays (0.157 billion
rubles). The wage bill is derived from employment (0.397 million)
and the average wage rate (94.5 rubles per month). Employment is
derived as 13 percent of the employment of the housing-communal
economy (3.052 mi11ion—Narkhoz 1978, p. 366). The wage rate is
assumed to be equal to that of the total housing-communal sector
(Ibid, p. 373). Social insurance deductions are calculated as 4.7
percent of the wage bill (CIA, GNP 1970, p. 54). Other current
outlays are assumed to be one-fourth of total current outlays.
(3) Civilian police outlays are estimated as 1.761 billion rubles—the
sum of wages (1.235 billion rubles), social insurance deductions
(0.086 billion rubles), and other current outlays (0.440 billion
rubles). The wage bill is derived from employment (0.675 million)
and an estimated wage rate (152.5 rubles per month). Employment
is estimated to be 67.6 percent of the Narkhoz employment
category “other branches of material production" (0.998 million—
Narkhoz I978, p. 366). The wage rate is assumed to be 25 percent
above the average wage rate of all state workers and employees
(122.0 rubles per month—Ibid). This assumption results from the
calculation of the implicit wage rate for the forestry and other
branches of material production sectors, the two sectors for which
wage data are not published in the Narkhoz. This type of calcula-
tion is subject to rounding errors, but a study of several years shows
that the implicit wage rate is consistently higher than the average
for all state workers and employees.
Social insurance deductions are assumed to be 7.0 percent of the
wage bill. Other current outlays are assumed to be one-fourth of
total current outlays.
3.Gross Investment
a. Fixed capital. (1) Machinery and equipment is estimated at
26.053 billion rubles: the sum of new fixed investment in machinery
and equipment (25.300 billion rubles), changes in warehouse stocks
of equipment requiring installation (-0.137 billion rubles), and the
acquisition of equipment by budget institutions (0.890 billion
rubles). New fixed investment is reported in Narkhoz 1972, (p. 474)
as the “equipment, instruments, and inventory,” component of
capital investment. This value is said to be in 1969 estimate prices.
139
How those prices compare to 1970 prices is uncertain. The
wholesale price index for the output of the machine-building and
metalworking branch of industry shows no change in 1970 com-
pared with 1969. Western studies have suggested that there is a
persistent upward trend in price, but no precise estimates of yearly
changes are available. Here it is assumed that there was no change
between 1969 estimate prices and 1970 expenditures.
The change in warehouse stocks of equipment requiring installa-
tion is from CIA, GNP I970, p. 55. The acquisition of equipment
by budget-supported institutions is not included in Soviet invest-
ment data. This value was estimated by increasing the reported
value for outlays by union-republic budgets (0.6506 billion rubles-
Gosbyudzhet I972, p. 78) to include outlays from the union budget.
In 1970 union-republic budgets financed 73.1 percent of total
outlays on edumtion, culture, health, physical culture, science, and
administration (Ibid, pp. 33, 34, 60, 69, and 72). It is assumed that
this relationship is also true for the acquisition of equipment.
(2) Construction and other capital outlays are estimated as the
difference between total expenditures on construction and other
capital outlays (59.8 billion rubles) and private expenditures on
housing construction (1.636 billion rubles—table D-2, item 5,a).
Total outlays on construction and other capital outlays are derived
as the difference between the gross output of the construction sector
(67.6 billion Narkhoz I 978, p. 41) and estimated expenditures on
capital repair of structures (7.8 billion rubles—appendix C).
(3) Net additions to livestock in the public sector are derived in
same manner as in the private sector (table D-1, item 2,c,[21). The
calculation is shown below.
Valuation of the Net Additions
to Public-Sector Livestock
Inventories, 1970
(1) (2)
Inventory of Animals
(thousand head)
(3) (4) (5)
Net Additions to
Livestock Inventories
End
1969
End
1970
Thousand Rubles Billion
Head Per Rubles
Head
Cattle 70,173 74,212 4,099 442 1.812
glogs 42,225 50,921 8,696 113 ____1.so4
Sheep and
goats
104.138 110,241 6,103 37 0.226
Poultry 230,213 276,192 45,919 is ‘"'6.m“"
Total 3.772
Approved for Release: 2019/07/19 C05210421