Khozraschet
Khozraschyot[a] (Russian: хозрасчёт, IPA: [ˌxozrɐˈɕːɵt]; short for хозяйственный расчёт khoziaistvennyi raschyot, 'economic accounting') was an attempt to introduce capitalist concepts of profit and profit center into the planned economy of the Soviet Union.Khozraschyot introduced a certain degree of independence of enterprises (which continued to be state-owned and subject to state control) and allowed for self-management and self-financing within the framework of prices set by the Soviet government.It has also been conflated with other concepts: self-financing, cost-effectiveness (самоокупаемость; samookupaemost), and self-management (самоуправление; samoupravlenie) introduced in state-owned enterprises in the 1980s.As defined in the Soviet Encyclopedic Dictionary: Khozraschyot is a method of the planned running of an economic unit (i.e., of a business, in Western terms) based on the confrontation of the expenses incurred in production with the production output, on the compensation of expenses with the income.Khozraschyot introduced the necessity of accountability and profitability, as well as motivation for economical expenditures.A tentative step towards private activity occurred in 1986 with a law allowing private management of a few handicraft and service businesses, which involved unpaid and family labour, strict state controls, and high tax rates of 65% (later reduced in 1988).