Indivisible Kolkhoz Capital Fund

Indivisible Kolkhoz Capital Fund


the major portion of the fixed production and nonproductive capital stocks of kolkhozes. These resources are not subject to distribution among kolkhoz members and instead remain indivisible. They are used in a planned way to expand reproduction and raise the level of cultural and consumer services provided to kolkhoz members. Together with state ownership of the land, the existence of the indivisible fund constitutes the economic base of the entire kolkhoz system. Such resources may be expended only in a target-oriented way.

When the kolkhozes were formed, part of their socialized property was assigned to the contributors’ fund and returned to members who left the kolkhoz. The remainder became part of an indivisible fund that was not subject to any reduction or distribution among members. As the kolkhoz system developed and grew stronger, indivisible funds increased in size many times and underwent a qualitative transformation; under present-day conditions, individual contributions have lost their economic significance.

Indivisible kolkhoz funds are broken down into productive and nonproductive components; the former is in turn branched into fixed and working circulating assets. The indivisible funds are supplemented by deductions from the net income of the kolkhozes and by property and money transferred without charge by the state. According to the 1969 Model Kolkhoz Charter, these deductions from net income for the expansion of fixed and working funds are obligatory. The size of the deductions is adjusted each year in accordance with the resource needs of further growth in socialized production. A kolkhoz may merge part of its indivisible fund with that of other kolkhozes or sovkhozes to form various types of interkolkhoz or state-kolkhoz associations.

The rational utilization and systematic expansion of the indivisible funds are crucial measures of the advance of the socialized economy among kolkhozes; they serve as the basis for a rapid rate of expanded reproduction and for a steady introduction of more intensive agricultural methods and of scientific and technological progress. According to comparative data from a series of kolkhozes, indivisible kolkhoz funds increased from 25.9 billion rubles in 1960 to 69.2 billion in 1972; this demonstrates the further advance of the entire kolkhoz system and the increased level of socialization in kolkhoz production.