Price Formation Under The Ninth Five-Year Plan

Abstract

In addition to other matters, the program adopted by the Twenty-Fourth Congress of the CPSU for the further improvement of the management and planning of the national economy envisages improvements in the system of price information. In his report on the Directives of the Twenty-Fourth Congress of the CPSU on the Five-Year Plan for the Development of the USSR National Economy in 1971-1975, A. N. Kosygin noted: effectiveness of the economic levers for the planned management of the national economy depends largely on the system of price formation. We have done a great deal of work to regularize wholesale prices on industrial products, and, as a result, they have come to reflect socially necessary expenditures of labor more precisely. This has created conditions for the further strengthening of cost accounting. The system of wholesale prices should be improved in the future as well. As labor productivity increases and as production costs decline, we shall lower wholesale prices on industrial products. (1)