in socialist enterprises and economic organizations, the surplus product in value terms.
Money accumulations represent monetary funds of enterprises and organizations in two basic forms: profit and turnover tax. Money accumulations are based on the net revenue produced in sectors of national economy. The existence of two basic forms of money accumulations is brought about by the principles of economic accountability and by the goal of ensuring regular and constant revenue for the national budget. Having the identical economic nature, the profit and the turnover tax differ by the ways of their utilization and the effect they have on the profit-and-loss operations of enterprises. The profit represents the net income of a given enterprise. It is closely related to the economically accountable operations of the enterprise and expresses the financial results of operating activities. To a great degree the profit is used for production expansion and for the creation of economic incentive funds for the enterprise. The turnover tax is directly applied as a revenue item to the national budget. However, 50 percent of the receipts from the turnover tax may be used to repay bank credit that is received for the purpose of the expansion of consumer goods production, in the event of a shortage of funds for production development or a shortage of revenues from sale of the goods produced as an expected result of the expansion.
The process of formation of money accumulations in the sectors of national economy has special features. In industry, money accumulations are established as a difference between earnings (calculated in industrial wholesale prices) and the full prime cost of production; in the building industry it amounts to 6 percent of the total of direct outlays for building and installation work and is included beforehand in the estimate in the form of an accumulation; in trade it is established as the difference between sales (including the total of rebates and markups) and distribution costs. In many industrial enterprises as well as in sovkhozes and in contract construction and installation organizations, money accumulations appear only in the form of profit. Money accumulations are a fundamental source of financing expenditures for the expansion of socialist production. Money accumulations are growing quickly as a result of the steady growth of social production and the increase in production efficiency (see Table 1).
|Table 1. Money accumulations of socialist enterprises and economic organizations (except kolkhozes) in the USSR (in billions of rubles)|
The increase in money accumulations is accompanied by substantial changes in their structure. In 1940, the share of profits amounted to less than 25 percent of money accumulations, and in 1950 they were approximately 20 percent of these accumulations, but beginning with 1966 profits exceeded the volume of the turnover tax and in 1971 amounted to more than 60 percent of the total of money accumulations.
An important index of the increased rate of production is the increase of the share of money accumulations in national income created in industry rose from 61.5 percent in 1960 to 63.4 percent in 1970. The main factors of money accumulation growth are the decrease of the costs of production as a result of the introduction of new developments in science and technology, the increase in labor productivity, and the im-proved economy of material expenditures, as well as the acceleration of the rate of sale of production. The quality and range of goods manufactured have a significant influence on the size of money accumulations. Money accumulations rep-resent a solid foundation for revenue in the state budget. The proportion of the receipts from profit and the turnover tax in the total revenues in the budget increased from 65.3 percent in 1950 to 68 percent in 1972.
R. D. VINOKUR