Special Funds

in self-accountable (khozraschetnye) and budget (biudzhetnye) organizations, goal-oriented funds of the monetary resources of enterprises and organizations, created out of profits and accruals.

Special funds are intended to ensure and stimulate production development, raise production efficiency, and stimulate certain kinds of activities. They differ in terms of purpose and origin.

In industrial enterprises and organizations run on the basis of profit-and-loss accounting, there are various special funds: a material incentive fund, a social-cultural and housing fund, and a fund for expansion of production, or investment fund. Under certain conditions, moreover, some enterprises have other special funds, including a consumer-goods’ fund, a socialist-competition bonus fund, a technological innovation fund, a bonus fund for the creation and introduction of new equipment and technology, comprehensive mechanization and automation, an export-production bonus fund, a local-industry development fund. They may also have a fund created from profits from the sale of new kinds of household chemicals, a fund created from profits from the sale of household articles and items of everyday use, a bonus fund for the collection, storage, and consignment of scrap ferrous and nonferrous metal, and a bonus fund for the saving of fuel, electricity, and heat. Sovkhozes have a material incentive fund, a social-cultural and housing fund, an insurance fund, an expansion fund, and a bonus fund for outstanding personnel and specialists. Kolkhozes have a reserve fund, a material incentive fund for kolkhoz members and specialists, a fund for social security and material assistance to kolkhoz workers, and a cultural and services fund.

The special funds of state enterprises and organizations are derived from profits; the investment fund is additionally derived from amortized deductions and from the sale of unneeded property. The special funds of kolkhozes are derived primarily from net income. The special funds of production associations and all-Union and republic industrial associations are to some extent centralized.

In budget organizations, the special funds include a fund for compulsory universal education in general-education schools, which is used to provide material assistance to needy students and to provide free school meals. Also among special funds of budget organizations are the bonus funds for those who report hunting, fishing, and forest-use violations; such funds are established in the appropriate organizations and are derived from the fines paid in consequence of such violations. In scientific research institutions, there is an institutional development fund, designed to cover extra expenses arising from maintenance and equipment acquisitions. Special funds can also include the special resources of institutions and organizations on budget (seeEXTRA-BUDGETARY FUNDS).

Special funds take shape in conformity to plan as enterprises and organizations meet certain quantitative and qualitative indexes that characterize production and management efficiency. The procedure for the establishment and use of special funds, and the deductions allowable for inclusion in such funds, are defined by decisions of the government of the USSR.