What is Decree No. 90 / 1965 Coll.?

Decree No. 90 / 1965 Coll., on the Planning Management of National Economy — Government Decree on Planning Management of National Economy.

When it became Decree No. 90 / 1965 Coll. effectiveness?

Decree No. 90 / 1965 Coll. became effective 01.01.1966.

Is Decree No. 90 / 1965 Coll. still valid?

Yes, Decree No. 90 / 1965 Coll. is still valid and effective.

Decree No. 90 / 1965 Coll. - Government Decree on Planning Management...

90

GOVERNMENT DECLARATION

of 25 August 1965

on the planned management of the national economy

At the current stage of the development of our society, it is necessary to apply a system of socialist planning management, which is based on an organic sequence of social planning with the influence of socialist religious monetary relations. In this way, conditions will be created to constantly restore consistency in practical economic life between the social interest, business and individual interests, to broaden the power and responsibility of businesses and to develop the labour initiative.

At the same time, the implementation of this system presupposes active participation of workers and social organisations in the management process and the effective political work of all institutions and organisations.

The system makes use of the objective effects of economic processes, the influence of the world and domestic markets, thereby creating economic pressure and material interest in the full application of the results of science and technology and promoting progressive trends in our economy.

The system aims to create uniform economic conditions, rights and obligations for enterprises to benefit well-run businesses that best meet the needs of society.

This system will be applied gradually, while the forms and methods of management will be developed in accordance with specific economic conditions and long-term objectives for the development of the system and their effectiveness will be examined by the economic results achieved.

For the gradual application of the principles of the planned management of the national economy, approved by the Resolution of the Central Committee of the Communist Party of Czechoslovakia on 29 January 1965, the Government of ČSSR pursuant to § 391 and § 395 of the Economic Code No. 109 / 1964 Coll., pursuant to § 28 of Act No. 23 / 1963 Coll., on People's Control and on National Economic Records, pursuant to § 17 and 20 of Act No. 20 of the Act No. 8 / 1959 Coll., laying down the basic rules on the State Budget and on the Management of Budgetary Funds, and pursuant to § 11 of Act No. 83 / 1958 Coll., on the Financial Planning and Management of National Enterprises and Other Economic Organisations of the State Socialist Sector of the National Enterprises and Other Economic Organisations of the National Socialist Sector, it:

Preliminary provisions

§ 1

This decree defines the concept and function of the plan, its instruments and economic management instruments, lays down the principles of their application and determines the competence and responsibility of the various economic management bodies and organisations in the planned management of the national economy, as well as the principles of participation of workers.

§ 2

(1) The planned development of the national economy is ensured by a system of national economic plans, which is a concrete economic policy and a basis for the management of the national economy by the State. The national economic plans express the objectives set by the company for the period in question and the means to implement them.

(2) The main instruments for ensuring planned development are, on the one hand, binding tasks, binding limits and indicative indicators of the plan and economic instruments. These main instruments act on creating optimal proportions and maximum efficiency in both the planning process and the implementation period.

(3) In particular, the role of economic instruments is to create favourable conditions for the consistency of corporate and social interests and for the long-term interest of businesses in optimal development and to create effective economic pressure on rational decisions of undertakings, other organisations and production units.

(4) The economic management authorities are obliged to apply the instruments of the planned management in such a way as to act in a consistent manner to meet the needs of the company in terms of quantity, composition, technical and quality level of products and services and to ensure maximum efficiency and efficiency.

§ 3

(1) The provisions of Part One, Part Two and Part Six are governed by all economic management bodies and all socialist organisations, unless otherwise specified.

(2) The provisions of Part Three shall apply to state economic organisations with a material interest in gross income or profits determined by the Government. The provisions of Part Four shall apply to other State economic organisations. Part Five applies to the management of national committees.

(3) The status of cooperative organisations in the national economy, their basic focus, management principles and organisational construction are regulated by the third part of Economic Code No. 109 / 1964 Coll. The relationship of cooperative organisations with the state budget is regulated by the Act on Pension Tax of Cooperatives and other organisations. The basic principles of an improved system of planned management in cooperative organisations shall be established by the competent authorities of the Central Council of Cooperatives, the Central Association of Cooperatives and the Central Association of Consumer Cooperatives, in accordance with the laws and needs of the national economy under their responsibility.

§ 4

(1) Economic management bodies are central authorities, Slovak national authorities, branch directorates and national committees.

(2) Production unit means a branch with associated national enterprises and special-purpose organisations or trust of enterprises, consisting of a branch (General) of the Directorate-General and subordinate national enterprises and special-purpose organisations. A trade firm without associated national enterprises and special purpose vehicles shall be considered as a production economic unit only in terms of planning stage, the development of tasks, limits and economic instruments and in terms of levies; create only corporate funds and a sectoral construction fund.

(3) The Directorate-General for Trade is defined in accordance with this Decree of the Directorate-General for Production of the Economic Unit.

(4) An undertaking within the meaning of Part Three and Part Four of this Order is a branch undertaking without associated national undertakings and special-purpose organisations, an economic organisation subordinate to a branch office or national committee, as well as an economic organisation directly managed by a central authority. The provisions on undertakings apply mutatis mutandis to branches only in respect of their own economic activity.

(5) The Regional National Committees carry out similar tasks in relation to the economy managed by the National Committees (Sections 10 (4), (5) and (7), 12 (1), 13 (2), 14, 15 (1), 17 (2), 19 (1), 21, 23 (2), 5 and 7, 29 (1), 31 (1), 34 (1) (b), 36 (2), 46 (4) and (5), 66) respectively.

National committees have similar functions towards undertakings governed by them [§ 10 (6) and (7), § 17 (3), § 18 (5), § 21, § 23 (2), § 29 (1), § 30 (2), § 32 (2), § 33, § 34 (1) (b), § 36 (1), § 43, § 54 (2), § 61 (2), § 66 (2), § 73 (2), § 79 (3), § 81 (2), § 84, § 85].

(6) The Slovak National Council carries out directly controlled tasks similar to those of the Central Authority.

ČÁST PRVNÍ

BACKGROUND OF THE LEVEL PLANS

§ 5

(1) The system of national economic plans consists of a national plan for the development of the national economy, which is the basis of that system, a state budget based on the financial plans of the enterprises and budgets of the national committees and linked to the national economic development plan, a credit plan, a cash plan, an exchange plan and the economic plans of the national committees, production units and state and other socialist organisations.

(2) The national economic development plan and the economic plans of the national committees, production units and socialist organisations, including their financial plans, are divided into long-term plans (usually five years) and implementation plans (annual).

(3) Plans containing the tasks of development of the economy and culture in Slovakia are part of the national plan for development of the national economy.

(4) The national economic development plan also includes plans containing areas development tasks and price development plans establishing changes in the price level of the sector and sectors, and, exceptionally, products such as the price level of the sector.

(5) A specific part of the State Plan for the Development of the National Economy shall be established in order to ensure the defence and security of the State.

§ 6

The development of long-term plans is based on technical and economic concepts and studies and a long-term outlook, containing the forward-looking objectives and guidelines for the development of the national economy, usually for a period of 15 to 20 years. They are the starting point for determining the content of long-term plans, in particular in those economic activities and processes whose implementation exceeds a period of five years, and identify structural and qualitative changes in the development of the national economy.

§ 7

(1) The long-term state plan for the development of the national economy (usually five years) is a comprehensive nationaleconomic plan which sets out the concept of the development of the national economy and its proportions, the way in which structural and qualitative changes are made, the development of international labour division, the preparation of qualified cadres and the development of standard of living and social consumption. It sets out binding tasks, distributes the most important means to achieve the objectives of the long-term plan and sets out the economic policy programme that forms the framework for the use of economic instruments.

(2) The long-term economic plans of the national committees, production units and socialist organisations are also comprehensive plans which provide for the development of the relevant sector, economic unit or organisation. They are based on and provide a long-term state plan for the development of the national economy.

§ 8

The implementation plans shall ensure and improve the tasks of the long-term plan in accordance with the conditions set out in its implementation. They shall be prepared for a period of one year with a view to a further one to two years.

§ 9

(1) In order to achieve the objectives and proportions set out in the national economic development plan, the instruments of the plan, which are binding tasks, binding limits and indicative indicators, as well as economic (long-term and operational) instruments, are used.

(2) In order to draw up a long-term plan, indicative tasks and indicative limits (generally expressed by aggregated data), indicative indicators and long-term economic instruments (§ 17) are set out.

(3) National economic plans are drawn up in a system of background data according to the guidelines and on the required forms.

ČÁST DRUHÁ

PLAN INSTRUMENTS AND PLANTS

Hlava 1

Plan tools

§ 10

(1) The binding tasks shall be:

(a) State tasks of science and technology;

(b) nominal investments or other tasks in investment construction;

(c) the total export tasks and, in particular, the supply of goods, relevant for the development of external relations and the fulfilment of interstate obligations;

(d) training tasks;

(e) the nominal tasks of production and other performance and supply;

(f) defence and state security security tasks;

(g) the tasks of developing the economy in Slovakia and in the areas.

(2) The binding limits are laid down in particular:

(a) the volume of sectoral investments and the total volume of unlisted investments, the volume of construction works carried out by construction firms for investment and overhaul and the amount of budgetary costs incurred by the construction works;

(b) non-investment expenditure by centrally managed budgetary and contribution organisations for science and research;

(c) the total volume of imports of goods and imports of goods specifically identified, relevant for the development of the national economy, external relations and fulfilment of interstate obligations;

(d) the number of workers, where necessary to ensure the proportional development of the national economy;

(e) the volume of wage funds or other indicators for organisations for which wage developments are not managed by economic instruments;

(f) collection of selected materials or energy.

(3) Binding tasks and binding limits are set by the government to the extent necessary in the long-term state development plan for the national economy and, as appropriate, to specify them, or to set further binding tasks and binding limits in the national economy's implementation plan, in the state budget or in the credit, treasury or foreign exchange plan.

(4) Binding tasks and binding limits are set by the Government to the central authorities and the regional national committees; those authorities shall, within their competence, ensure binding tasks and binding limits, on the one hand, by economic instruments, on the other, by setting binding tasks and binding limits, on the other hand, to subordinate organisations.

(5) The central authorities and the Regional National Committees may extend the scope of binding tasks and binding limits set by the government in the long term or in the implementation plan only exceptionally, by imposing an exceptional binding task (§ 14).

(6) The Trade Directorate may extend the scope of binding tasks and binding limits only under the conditions laid down in the status of the production unit or by imposing an exceptional binding task (Section 14). The national committees are also advancing.

(7) For supplies to the extent of binding tasks, organisations are required to conclude an economic contract under the conditions laid down in the Economic Code. If the organisation fails to comply with the binding limit, the superior authority shall be entitled to draw an appropriate amount from the workers' or reserve fund or to reduce the relevant limit in the next year. The amount spent shall be transferred by the branch head to its reserve fund, the central authority to its financial reserve, the national committee to its reserve fund and development.

§ 11

(1) In determining the binding state task of science and technology, the government shall also determine the workplaces responsible for the resolution and coordination of the binding state task of science and technology and the critical collaborative workplaces, the time limit for the solution and the decisive means of securing the task.

(2) Only the production of particularly important specific products can be imposed as a binding task of production and other performance and supply, by identifying quantities or by establishing technical economic parameters. Exceptionally, the nominal task of production and other performance and supply may be imposed on a wider set of products where:

(a) objectively acting effects limit the effectiveness of economic instruments (e.g. natural conditions);

(b) the full operation of economic instruments and market relations cannot be expected for a transitional period (e.g. for export supplies, internal trade, nominal buildings, etc.).

§ 12

(1) Central authorities and national committees may break down the limits of the number of workers into subordinate production units and organisations either as binding limits or as indicative indicators if they ensure that they are complied with in a summary.

(2) In order to ensure the need for labour in preferred sectors, the Regional National Committees may, in the light of the situation in the resources of the labour force, provide for a binding limit for undertakings (organisations) whose workforce has been designated as indicative by the superior authority, in agreement with the superior authority.

(3) The binding limit on the number of workers may only exceptionally be exceeded on the basis of the written authorisation of the Regional National Committee, issued in agreement with the Central Authority. The requirements for authorisation to exceed the limit on the number of workers are assessed by the Regional National Committee in terms of social efficiency and possibilities in labour resources.

(4) There is a specific regulation applicable to the reception and overrun of workers from additional sources for the expansion of services and for the maintenance of the housing fund.

§ 13

(1) Indicative indicators do not have the character of binding tasks; serves for information about the needs and resources of the company. The organisation shall, by market research, negotiations with its customers and suppliers, and in particular by concluding long-term and other contracts, specify the proportions of the State plan expressed by indicative indicators and inform the superior authority of the accuracy.

(2) The economic management authorities analyse the deviations of the actual economic development from the indicative indicators of the State Plan and draw conclusions on the operational use of economic management instruments and on the arrangements for the use of reserves, on import, investment, etc. If the differences in actual developments from the proportions of the State plan expressed by the indicative indicators would significantly jeopardise the fulfilment of the essential objectives of the State plan, the government will impose additional binding limits or impose on central authorities (regional national committees) to ensure the proportions of the State plan by exceptional binding tasks (§ 10 (5)), where the use of economic instruments would not be effective.

§ 14

(1) The economic management body, which imposes or proposes the imposition of a binding task of production, other performance or supply, is obliged to ascertain whether the setting of a binding task will result in a deterioration of the economic result to the extent that the desired wage developments would be jeopardised. In such a case, it shall make or propose the necessary changes to the economic management tools, or ensure that the economic consequences are adequately compensated.

(2) In cases where central authorities, national committees or branch offices extend the scope of binding tasks on the production, other performance or supply sector (Sections 10 (5) and (6)), they are obliged to pay actual damages if they result from the imposition of such an exceptional task.

(3) Organisations may apply for the remuneration referred to in paragraph 2 only if they notify and justify to the supervisory authority within the time limit set by them the extent of adverse economic consequences.

Hlava 2

Planning process

§ 15

(1) The establishment of a national economic development plan is governed by the guidelines of the Government of the State Planning Commission (part of that plan concerning the development of science and technology, with the State Commission on the Development and Coordination of Science and Technology); It shall be attended by the central authorities, the Slovak National Council and the Regional National Committees, as well as scientific institutions and research institutes. The preparation of the economic plans of socialist organisations is managed by senior central authorities (for organisations managed by national committees, the relevant national committees in cooperation with central authorities).

(2) The participation of the National Assembly in the development of fundamental issues of the development of the national economy and in the development of the state plan of the national economy is governed by Resolution 182 / 1964 Coll.

(3) The procedure for drawing up a national economic development plan follows the guidelines of the State Planning Commission.

Long-term plan

§ 16

When drawing up a long-term plan, the central authorities, the Slovak National Council, the national committees, the branch directorates and organisations shall confront their intentions with the concept contained in the directive laid down by the Government and propose to the superior authorities any adjustments supported by economic analyses. The economic management authorities and organisations are working through a gradual approach to the most appropriate solution in drawing up a long-term plan. They gradually work out several, always deeper, draft plans and compare different options of solutions.

§ 17

(1) The guidelines for drawing up a long-term state plan for the development of the national economy are laid down by the Government on the basis of a proposal from the State Planning Commission (including a directive for drawing up a long-term plan for the development of science and technology, the State Planning Commission and the State Commission for the Development and Coordination of Science and Technology). The Directive contains:

(a) long-term economic management tools;

(b) indicative tasks and indicative limits for the preparation of the State Plan;

(c) indicative indicators.

(2) On the basis of the directive laid down by the Government, the central authority shall develop indicative tasks and indicative limits and indicative indicators for branches and directly managed organisations. National committees and the Slovak National Council are also advancing similarly. The provisions of Sections 30 to 36 and 46 to 48 apply to the determination of levies.

(3) The Directorate-General for Trade (Management National Committee) will work out the undertakings established by the long-term economic management tools; the indicative tasks and indicative limits and indicative indicators shall be broken down by enterprises to the extent and in a form corresponding to the level of concentration of the management and planning agenda at the branch (managing national committee).

§ 18

(1) The State Planning Commission shall draw up and submit to the Government a draft of a long-term national plan for the development of the national economy on the basis of proposals from central authorities, the Slovak National Council and the Regional National Committees. The draft plan for the development of science and technology shall be jointly submitted by the State Planning Commission and the State Commission for the Development and Coordination of Science and Technology and by the draft investment construction and project plan of the State Planning Commission in cooperation with the State Commission for Investment Construction.

(2) On a proposal from the Government, the National Assembly is discussing a long-term plan for the development of the national economy and approving it by means of a law (Section 4 of Act No. 183 / 1964 Coll.).

(3) The central authorities shall communicate to the subordinate organisations the indicative indicators of the long-term plan and ensure government-imposed binding tasks and binding limits; they proceed in accordance with Paragraph 10 (4) and (5). National committees shall proceed to ensure a long-term national development plan for the national economy in accordance with § 21 and the authorities of the Slovak National Council in accordance with § 20.

(4) The five-year research plan is approved by the Government; it empowers the Czechoslovak Academy of Sciences to implement and approve the necessary amendments and additions.

(5) The branch directorates (managing national committees) will transfer binding tasks and binding limits to subordinate organisations in a way that ensures their fulfilment and corresponds to the concentration of the management and planning agenda on the branch (managing national committee); simultaneously communicate indicative indicators to subordinate organisations. They shall act in accordance with the provisions of Paragraph 10 (6).

§ 19

Implementation plan

(1) The draft State implementation plan for the development of the national economy is drawn up on the basis of verified proposals from central authorities, the Slovak National Council and the Regional National Committees of the State Planning Commission; submit it to the Government with information on the options for dealing with the implementation plan's tasks and the proposal to identify the economic instruments to encourage the implementation of the plan.

(2) Paragraph 18 (3) and (5) shall apply mutatis mutandis to ensure binding tasks and binding limits of the State Implementation Plan.

§ 20

National Economy Development Plan in Slovakia

(1) The proposals for the National Economy Development Plan in Slovakia are drawn up in the capacity of the planning body of the Slovak National Council and in the capacity of the Regional Authority of the State Planning Commission of the Slovak Planning Commission, in cooperation with the central authorities, other authorities of the Slovak National Council, regional national committees, sectoral directorates and organisations. In the sectors in which the delegates of the Slovak National Council are active, the relevant delegates and the Commission of the Slovak National Council participate in the planning process by drawing up draft plans and, to the extent laid down by the Government, implementing and responsible for their implementation.

(2) The Slovak Planning Commission submits a draft plan to the Bureau of the Slovak National Council and the State Planning Commission. When drawing up the draft economic development plan in Slovakia, it shall be based on the draft plans drawn up by the delegates, commissions and other executive bodies of the Slovak National Council and on the proposals for economic plans for enterprises (and, to the extent possible, for plants) in Slovakia, submitted by the branch directorates to the Slovak Planning Commission or by the respective delegates and commissions of the Slovak National Council.

(3) The central authorities and industry directorates discuss with the Slovak Planning Commission or the relevant management bodies of the Slovak National Council, the fundamental issues of development of individual disciplines in Slovakia, in particular the placing of new plants, the order of urgency of investment actions, the design of technical and economic concepts, the focus of production programmes and their deployment, the basic tasks in the field of economic instruments, the organisation of a production technical base and the development of qualified cadets.

(4) The Government sets out binding tasks for the plan for the economy in Slovakia

(a) the Slovak National Council for the economy directly managed;

(b) the central authorities, within the framework of their overall binding tasks and in cases where the Slovak national authorities act as carriers of binding tasks, including as delegates;

(c) National Committees in Slovakia on the basis of a proposal submitted by the State Planning Commission after consulting the competent authorities of the Slovak National Council.

The decisive tasks in terms of the development of the economy in Slovakia are defined by the government as binding tasks in the territorial section.

(5) If the government determines certain economic management instruments directly for the branch directorates, it shall determine the tasks for Slovakia in all cases where this is necessary to carry out the tasks of developing the economy in Slovakia and for the effective deployment of production forces.

§ 21

Economic plans managed by national committees

The Regional National Committees shall develop binding tasks, binding limits and indicative indicators of the long-term and implementing national economic development plans and shall establish economic management tools for subordinate organisations and national lower-level committees; binding tasks and binding limits may be developed and established by national committees for subordinate organisations and national committees in a non-governmental form. The number and scope of binding tasks and binding limits may only be extended by the National Committee if the necessary interest in meeting local needs so requires and if this does not undermine the economic autonomy of the organisation. Otherwise, it may impose a special binding task under the conditions set out in paragraphs 5 and 6 of Section 10.

§ 22

Regional plans

(1) In order to ensure the proportionality of the development of the economy on their territory, regional national committees shall draw up draft plans for the development of areas.

(2) The central authorities, the authorities of the Slovak National Council, the branch directorates and their subordinate organisations are obliged to submit to the Regional National Committees, as a basis for drawing up draft development plans for areas, draft their plans in a regional breakdown to the extent laid down by the guidelines of the State Planning Commission. The Regional National Committees shall also discuss their development tasks relating to the overall development of the economy in the territory of each region; the protocol on these negotiations is the basis for drawing up their plans.

(3) The Regional National Committees provide the central authorities, the Slovak National Council, the Directorates-General and their subordinate organisations with the supporting documents and data needed for their activities in terms of economic development of the areas, in particular the data on labour resources, housing, water conditions and the construction of equipment on the economic sector managed by the national committees.

§ 23

Amendments to the implementation plan

(1) The binding tasks and binding limits set by the State Implementation Plan can only be amended by the Government and, to the extent it is empowered by the State Planning Commission, the State Commission for the Development and Coordination of Science and Technology, the Slovak National Council and, where appropriate, the Ministers (Heads of Central Authorities) and the Regional National Committees.

(2) The central authorities, the Slovak National Council and the National Committees may make amendments only within the framework of their binding tasks and binding limits.

(3) The provisions of the preceding paragraphs apply mutatis mutandis to amendments to the operational economic instruments provided for.

(4) An application for amendment under paragraphs 1 to 3 may be submitted by the competent authority or organisation under the conditions set out in Section 14. In the amendment proposal, it must quantify its impact on the other data of its plan, the impact on the plans of suppliers and customers, or other changes to the organisations concerned. The proposal to amend the binding supply task must always be accompanied by the opinion of the customers. The proposal must always address the consequences of changes to the management of the organisations concerned.

(5) Proposals for amendments pursuant to paragraph 1 shall be submitted by the competent central authority or the Regional National Committee after consultation of the State Planning Commission, the State Commission for the Development and Coordination of Science and Technology, the Ministry of Finance or other participating central authorities and regional national committees, the Regional National Committee also after consultation of the competent central authority.

(6) The proposals for amendments referred to in paragraphs 1 to 3 concerning the tasks of development of the economy in Slovakia as well as the amendments concerning the plans of the national committees in Slovakia must be discussed in advance with the competent authorities of the Slovak National Council.

(7) Proposals for amendments under paragraph 2, which also affect the State budget, must be discussed in advance with the Minister for Finance; If the mandates of the Minister of Finance or the Minister of Finance so request, the competent central authority (Slovak National Council, Regional National Committee) shall submit a proposal to the Government.

(8) The State Planning Commission provides details of changes to the investment construction plan by central investors.

(9) If the change of plan increases the originally established binding task in production, other performance or supply, the procedure shall be followed in accordance with Paragraph 14.

ČÁST TŘETÍ

ECONOMIC INSTRUMENTS

Hlava 1

Economic instruments, gross income and profit

§ 24

Economic management authorities are obliged to use economic instruments to create a material interest in enterprises to improve and expand production, to adapt it flexibly to the needs of society and to increase labour productivity based on the continuous use of new technology.

§ 25

The following are used as long-term economic instruments:

- the levy fixed by a percentage of the residual price of the basic funds (hereinafter referred to as "the levy on basic funds"),

- share or contribution from depreciation of basic funds,

- gross income or profit payment, fixed at a fixed rate or fixed amount or rules for its determination.

§ 26

In particular, as operational economic instruments:

- prices, price increases and reductions, subsidies, turnover taxes,

- tariffs, wage forms, labour consumption standards and other labour system instruments,

- additional levies and discounts on contributions under specific regulations,

- establishing allocations to individual funds,

- special-purpose subsidies,

- operating and investment loans and interest on them,

- foreign exchange loans,

- compulsory participation of production units and economic organisations in the payment of sectoral investments,

- regional proportionality instruments,

- instruments of material interest in increasing the efficiency of foreign trade and in creating and saving foreign exchange funds,

- the recovery of funds unduly obtained on the basis of results and revisions,

- periodic penalty payments, fines, damages and other penalties.

Gross income and profit

§ 27

(1) Gross income of the organisation consists of the income realised from the realisation of products and other performance (works and services) of the main activity and other activities, various forms of subsidies to prices, income for investments, overhaul and material (including small and short-term items) of own production and other income,

After deduction of turnover tax and other items shortening revenues and revenues (e.g. purchase price of goods sold, material stocks sold and subcontracting, reductions granted to sales organisations, amounts transferred to a risk fund)

and after deduction of material costs (material consumption, output, depreciation of basic assets and articles in use) and services and expenditure of a non-productive nature.

(2) Save as otherwise provided by the Government, the gross income shall be added to the increase or the loss of the state of unfinished production, the own production semi-finished products, the stocks of products and animals and the change in the balance of accounts by accrual of costs and revenues.

(3) The detailed content of the individual gross income formation components referred to in paragraphs 1 and 2 shall be laid down in the accounting rules.

§ 28

The profits of the organisation shall consist of:

revenue from all its activities and various forms of subsidies to prices,

after deduction of turnover tax and other items shortening revenue and revenue,

after adding the increase or deduction of the stock shortfall referred to in § 27 (2) and changes in the balance of accounts accrual of costs and revenues

and minus costs.

Hlava 2

Use of gross income or profit and depreciation in enterprises

§ 29

Use of gross income or profit

(1) In agreement with the Central Authority (Regional National Committee), the Directorate-General for Trade (Management National Committee) will determine whether material interest in gross income or profit will be exercised in subordinate enterprises.

(2) Gross income or profit must be used by the undertaking first to cover its obligations, namely:

- in particular, contributions to the state budget (budget of the managing national committee, branch directorate);

- insurance against sickness insurance, benefits and charges, interest, difference between fines paid and fines received and periodic penalty payments (the active difference is added) and other non-productive expenditure under the accounting rules;

- to repay the loans if they are not paid from the recovery fund.

(3) After making the payments referred to in paragraph 2, a gross income undertaking or profit shall use to create and supplement:

the reserve fund,

the recovery fund,

Citation	Decree No. 90 / 1965 Coll., on the Planning Management of National Economy
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	23.09.1965
Effective from	01.01.1966
Effective until	-
Status	Valid

Decree No. 90 / 1965 Coll.

Government Decree on Planning Management of National Economy

Contents

§ 1

§ 2

§ 3

§ 4

ČÁST PRVNÍ

§ 5

§ 6

§ 7

§ 8

§ 9

ČÁST DRUHÁ

Hlava 1

§ 10

§ 11

§ 12

§ 13

§ 14

Hlava 2

§ 15

§ 16

§ 17

§ 18

§ 19

§ 20

§ 21

§ 22

§ 23

ČÁST TŘETÍ

Hlava 1

§ 24

§ 25

§ 26

§ 27

§ 28

Hlava 2

§ 29

Contents

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