The leadership has claimed that the abolition of direct taxes on the population with the concomitant improvement in public welfare was made possible by the country's economic advance based on the Party's correct revolutionary policy, and it contrasted the progressive nature of this measure with an alleged intensification of exploitation and misery of workers in what are officially called imperialist and modern-revisionist countries. This comparison ignores the existence of the turnover tax, which is particularly heavy on consumer goods, and of the enterprise profits deduction, both of which are reflected in the sales price of commodities and, consequently, represent a hidden form of sales taxes. This method of taxation is known to be regressive, in that it takes no account of differences in income and places the heaviest burden on those least able to pay. The published budget laws usually specify the amount of revenue to be derived from the socialized economy, including collective farms and cooperative enterprises. The proportion of this revenue was reported to have been 85.5 percent in 1960 and from 88 to 89 percent in the 1968-70 period. This information cannot be reconciled with the published revenue statistics, particularly with the data concerning the taxation of noncollectivized farm enterprises, the proceeds from which were reported to be less than 0.5 percent in 1964. The revenue from the nonsocialized sector consists mostly of taxes imposed on the output from personal farm plots of collective and state farm workers and, to a lesser extent, of taxes on some private artisan and other activities still tolerated by the government within narrowly prescribed limits. Information on budgetary expenditures is also incomplete. Published statistics failed to specify the use of 17.5 percent of the total outlays in the 1960-65 period, and no explanation is readily at hand for the decline of the unallocated residue from that level to between 3 and 4 percent in 1968-70. The published data included outlays for the national economy, social and cultural needs, defense, and administration.