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Balance of Money Incomes and Expenditures of the Population
 

Balance of Money Incomes and Expenditures of the Population, a constituent part of the balance of the national economy: a system of indicators reflecting movement in that part of the national income which is distributed among the members of socialist society in monetary form. This type of balance is employed to define the relation between the effective demand of the population and its provision with goods. The balance figures are used to plan commodity turnover, the payments and savings of the population, and monetary circulation as a whole. The balance is drawn up for the entire country, as well as for the Union republics, territories and regions. The balance appears under two headings: income and expenditure. The formation of disposable income of the population is indicated in the “income” section according to the principal sources of origin: from state and cooperative enterprises (wages and salaries, the money incomes of collective farmers, pensions, allowances, etc.), from the sale of agricultural products, and receipts from the financial system (loans and lottery winnings, interest on savings deposits, etc.). The expenditure of money is indicated according to the principal forms in which it is used: purchases of goods from state and cooperative enterprises and from collective farmers, payments for services (housing and public utilities, daily requirements, transport, communications, entertainment, etc.), the paying of compulsory dues, voluntary contributions and savings, and, finally, the payment for goods and services on the basis of exchange between groups of the population. Apart from this, the indicators of the balance illustrate the magnitude of change in the disposable income remaining with the population, and calculating this aspect is very important for planning currency circulation. The movement of disposable income is shown in the balance for the entire population and for the basic social groups. It is very important to have this kind of social breakdown in the balance of money income and expenditure of the population because the sources of disposable income and the principal items of expenditure vary significantly from group to group. When defining the volume of the purchasing fund of the population, certain forms of noncommodity expenditure (chiefly payments for various services and of dues) are excluded from the total sum of money receipts, as are resources intended to augment savings. The indicators of the balance make it possible to define the role of individual sources in the formation of the population’s disposable income and purchasing fund, reveal the correspondence between the effective demand of the working people and the supply of goods and services, and resolve a series of issues of great economic importance. The population’s monetary means are backed mainly through the growth of social production, with labour productivity growing faster than wages. If this pattern is not followed, a shortage of consumer goods greatly in demand ensues, and in the final analysis the country’s entire economy is adversely affected.

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