Kolkhoz Revenues

The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

Kolkhoz Revenues


funds in money and in kind that are received as the result of the economic and financial activities of the kolkhozes. There are several kinds of kolkhoz revenues.

Money kolkhoz revenue is the sum of money received by the kolkhoz from the sale of production, from work performed and services rendered outside the kolkhoz, and from lesser sources such as insurance compensation and interest on savings. The money is used by the kolkhoz first to pay kolkhoz members for their work and then to cover other working expenses, to make payments to the state, to repay loans, and to organize or replenish the kolkhoz common funds. When distributing monetary funds out of kolkhoz revenues the following must be ensured: a proper combination of accumulation and consumption; the continuous growth of the common funds for production, insurance, and social amenities; and the improvement in the living standard of kolkhoz members. Monetary kolkhoz revenues (in prices of the respective years) amounted in 1965 to 19.9 billion rubles and in 1970 to 31.7 billion rubles.

Gross kolkhoz revenue, which is a part of the gross kolkhoz production in current prices, is the amount that remains after the reimbursement of all expenditures. Gross kolkhoz revenue is created by the labor of the kolkhoz members expended during the process of production. The gross kolkhoz revenue is the basis of the fund used to pay wages to kolkhoz workers, including guaranteed wages. This fund averaged 61 percent of the gross revenue for all kolkhozes in the country in 1970. From the gross kolkhoz revenue, 4 percent is deducted for the centralized Union fund of social security for the kolkhoz population, and 2.4 percent of the amount of the wages fund is deducted for social insurance. The remaining gross kolkhoz revenue is the net revenue. Gross kolkhoz revenue (in prices of the respective years) amounted in 1965 to 17.9 billion rubles and in 1970 to 22.7 billion rubles.

Net kolkhoz revenue is the surplus product derived from the labor of the kolkhoz members. Its volume expresses the final results of the collective farm economy and shows the efficiency level of kolkhoz production. Net kolkhoz revenue is used to pay taxes and make monetary payments to the state (insurance premiums, interest to Gosbank [State Bank]), to increase fixed and working assets of the kolkhozes (the amount of the deductions is established yearly in each kolkhoz), and to expand production (such as acquisition of new machines, devices, and equipment; construction of production premises; purchase of pedigree cattle; long-term plantings; and land improvement). Part of the net kolkhoz revenue is transferred to the state through the purchases of products at state-established prices. The remaining part of net kolkhoz revenue is used to create public consumption funds: the public amenities fund and the fund of social security and material assistance to the kolkhoz members. In addition, from the net kolkhoz revenue a material incentive fund for kolkhoz workers and specialists is created and a reserve fund is organized and replenished.

Thus, gross kolkhoz revenue is shared between the entire society, represented by the state, and the direct producers, the kolkhoz workers. The part of the gross kolkhoz revenue that is transferred to the disposal of the state is used to strengthen the defense of the state, develop public health services and educational facilities, and maintain the apparatus of the state.


The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.