The contribution to social funds (GFA) in the GDR was a transfer of the enterprises to the state budget.
The BGF was introduced in the central industry in 1984 and a year later in construction. It amounted to 70% on the wage sum of the respective enterprises. It was a sort of tax on wages. The BGF was part of the costs and could be calculated as part of the industrial prices. He had no effect on the end-user prices. This led to a further distortion of the price system in the GDR.
The introduction of the BGF has been accompanied by growing social expenditures for the improvement of material and intellectual living standards, health care, social and cultural care and others, ie measures for reproducing the workforce in its broad sense. Expenditure on these measures has largely been financed from the state budget.
The BGF was regulated in four regulations on the contribution to social funds. With the introduction of the monetary, economic and social union on 1 July 1990, the BGF was repealed. Weblinks Edit sourcetext Single-level Edit source text
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