Contribution to social funds

In the GDR, the contribution to social funds (BGF) was a transfer of the companies to the state budget .

The BGF was introduced in 1984 in centrally managed industry and one year later in construction. It was 70% of the total wages of the respective companies. It was a kind of payroll tax . The GFA was part of the costs and could be calculated as part of the industry prices. On the retail prices had no effect. This led to a further distortion of the price system in the GDR.

The introduction of the BGF was justified with growing social expenditures for the improvement of the material and intellectual standard of living, for the health system, social and cultural care and other things, i.e. for measures that belong to the reproduction of the labor force in its comprehensive sense. Most of the expenditure for these measures was financed from the state budget.

The BGF was regulated in four ordinances on the contribution to social funds. With the introduction of the monetary, economic and social union on July 1, 1990, the BGF was abolished.

Web links

• Dietrich Miller: On the value and cost theory of real socialism and its practice in the economy of the GDR, p. 1, www.bpb.de/deutschlandarchiv/54064/zur-wert-und-kostentheorie?p=all , from March 7th 2011, accessed January 24, 2017.

Individual evidence

1. ^ First regulation on the contribution to social funds of April 14, 1983 (Journal I No. 11 p. 105), Second regulation on the contribution to social funds of June 14, 1984 (Journal I No. 18 p. 238) , Third Ordinance on Contributions to Social Funds of May 24, 1985 (Journal of Laws of I No. 14 p. 178), Fourth Ordinance of September 22, 1986 on Contributions to Social Funds (Journal of Laws of I No. 30, p. 416) .