in the USSR and other socialist countries the planning and regulating procedures dealing with cash turnover passing through the branches of the state bank of issue and with changes in the amount of money in circulation that serves as means of exchange, payment, and saving for the working people. Along with the planning of the money income and expenditure of the population, cash planning is a basic form of planning money circulation in the country. Cash planning is possible only in socialist countries, whose planned economies allow a clear differentiation between ready-cash money turnover and noncash payments and the centralization of all accounting and cash operations in one single state bank of issue.
In the USSR, cash planning is implemented in close connection with credit planning through the drawing up of cash plans of the Gosbank (State Bank) of the USSR; these plans are based on indexes of the national economic plan, the state budget, the balance of money income and expenditure of the population, and the economic and financial plans and estimates of enterprises, institutions, and organizations. Before the credit reform in 1930, the turnover of cash funds was not planned directly. The amount of money in circulation was indirectly defined in credit plans through coordination of the size of credit operations of Gosbank and the volume of free funds attracted in accounts and deposits. The cash plan for Gosbank was first drawn up for August 1930. Cash planning developed with the development of the socialist economy and the improvement of national economic planning. Today, cash turnover is planned both for the country as a whole and for each republic, krai, oblast, raion, and city; the planning is done not only according to the volume and direction of the flow of money but also according to the economic content, that is, by the income sources and the intended function of payment. The accounting of the actual money turnover is implemented in the same way. Thus, any deviation in the course of carrying out the national economic plan can be rapidly and effectively exposed and can be overcome through use of internal reserves found in the economy; also, money issue and withdrawal from circulation based on territorial considerations can be regulated in a centralized manner. Cash planning is also done in other socialist countries.
REFERENCESBatyrev, V. Organizatsia i planirovanie denezhnogo obrashcheniia v SSSR. Moscow, 1952.
Batyrev, V., and G. Kaganov. Organizatsiia i planirovanie denezhnogo obrashcheniia v SSSR (textbook). Moscow, 1964.
Atlas, Z. V. Sotsialisticheskaia denezhnaia sistema. Moscow, 1969. Pages 276–84.
Kaganov, G. V. Organizatsiia i planirovanie denezhnogo obrashcheniia vSSSR. Moscow, 1971.
P. P. ROSLIAKOV