Administrative and Managerial Budget

budget for the maintenance of the administrative machinery, including the expenditures for the maintenance of the agencies of state authority and state administration, the machinery of national economy management (ministries, departments, chief administrations, associations, combines, trusts, and construction projects), and the production management of enterprises. The administrative and managerial budget of self-supporting state enterprises is drawn from the assets of the enterprises and is included in the cost of production.

The size of the administrative and managerial budget depends primarily on the number of administrative and managerial personnel. For the agencies of state administration, cultural, educational, and public health institutions, and other organizations, the number of administrative and managerial personnel is decided by the ministers and chiefs of agencies of the USSR and of the Union republics’ councils of ministers. The structure and staff of an enterprise are determined by the director of the enterprise. Neither the structure and staff nor the estimate of the administrative and managerial budget is subject to registration with financial agencies.

The resources for the maintenance of the adminstrative machinery are spent according to the estimate of the administrative and managerial budget, which includes the salary fund for the administrative and managerial personnel; the funds for business trips and relocation; and such items of the administrative and managerial budget as deductions for the social insurance of the administrative and managerial personnel; expenditures for business travel; maintenance of passenger automobiles; office, printing, mail, telephone, and telegraph expenditures; maintenance and repair of administrative buildings and equipment; maintenance of telephone stations, switchboards, dispatchers, communications, computer stations, and bureaus; and security. The salary fund accounts for about three-fourths of the total sum of the administrative and managerial budget.

The Twenty-third Congress of the CPSU stated that the administrative machinery should be further reduced so that operations will be less costly. The implementation of economic reform makes it possible to reduce and simplify administrative and managerial operations. The reduction of staffs and of other administrative and managerial expenditures yields an average annual saving of 2.9–3 percent of the sum total. The administrative and managerial operations will be further reduced through greater work efficiency, simplification of paper work, and the introduction of computer techniques and other devices for mechanizing the work of engineers and technicians.