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

Approved for Release: 2019/07/19 C05210421
The Main Financial Flows
The nature of the accounting units determines the
main financial flows used in the GNP accounts. For
each type of unit incomes and outlays can be listed.
The output of a khozraschet enterprise is sold to other
enterprises for use in current production or is allocat-
ed to one of the end uses: private consumption,
investment, government consumption, or exports. A
khozraschet enterprise buys goods and services for its
own production needs and spends some of the funds at
its disposal on wages, social insurance contributions,
depreciation, and taxes. Sales less expenses equal
profits and other net income. These financial flows are
listed below:
Khozraschet Enterprise Income and Outlay Account
Outlays Incomes
1.1 Goods and services 1.11 Sales to other enterprises
1.2 Wages on current account
1.3 Social insurance 1.12 Sales to private
1.4 Depreciation consumption
1.5 Indirect taxes 1.13 Sales to investment
1.6 Retained profits 1.14 Sales to government
1.7 Profits paid to the state budget consumption
1.8 Special charges for education, 1.15 Sales to export
research and development, and
other
1.9 Miscellaneous charges
1.10 Subsidies received (negative
value)
A budget institution normally does not sell its output;
instead it receives its funds through the state budget.
In the US GNP accounts, the output of a government
organization is valued as the sum of its current
operational expenditures. A Soviet budget institution
is treated in the same manner here. The deficiency in
this approach, as is the case in the US accounts, is its
failure to take account of the contributions of fixed
and working capital. The income and outlay accounts
of a budget institution are as follows:
Budget Institution Income and Outlay Account
Outlays Incomes
2.1 Goods and services
2.2 Wages
2.3 Military pay
2.4 Military subsistence
2.5 Social insurance
2.6 Sales receipts (transfer
to budget)
2.7 Budget allocation for operating
expenditures
2.8 Sales for intermediate consump-
tion to enterprises
2.9 Sales to consumers
29
There is some double counting here for institutions
that sell some goods or services, because the list of
incomes includes both sales receipts and the entire
budget allocation. The sales receipts are also listed as
an outlay (item 2.6) when they are transferred to the
state budget. An example is a theater or museum that
operates on budgetary allocations but collects admis-
sion fees. The admission fees would be listed both as
an income under item 2.9 and as an outlay under item
2.6.
Constructing accounts for the kolkhozy is more diffi-
cult because of the scarcity of relevant data. Kolkhoz
output is either sold to state procurement agencies,
sold directly to state enterprises, sold in kolkhoz
village markets, or distributed to members of the
collective. In addition, the kolkhoz is expected to pay
depreciation and to make sufficient profits to cover
investment needs and pay taxes. These flows are
outlined below:
Kolkhoz Income and Outlay Account
Outlays Incomes
3.1 Goods and services
3.2 Money wages of kolkhoz
members
3.3 Money wages of hired
workers
3.4 Social insurance
3.5 Depreciation
3.6 Taxes
3.7 In kind distributions to
kolkhoz members
£8 Retained income
3.9 Sales to procurement organiza-
tions for resale
3.10 Sales for consumption
3.11 In kind distributions to
kolkhoz members
3.12 Sales to kolkhoz markets
The private household account is concerned with the
production of goods and services, as well as with
consumption and investment. As producers, house-
holds sell agricultural production from their private
plots, rent their owner-occupied housing to them-
selves, sell various services, and sell newly constructed
housing. Some of the values in the account are
imputed rather than monetary flows. An example is
imputed rent of owner-occupied housing, which is
based on the rental rate for state-owned housing and
Approved for Release: 2019/07/19 C05210421