Special Funds

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.


References in periodicals archive ?
If there are any losses, they don't affect the equity of the bank, but rather the equity arrangements of the special funds.
Specially Elected Member of Parliament, Ms Bogolo Kenewendo has urged government to increase accountability in the public finance system by allowing the Minister of Finance and Economic Development to supervise all government special funds.
SIALKOT -- Sialkot District Council has allocated special funds of Rs10 million for financial help of deserving women in the district.
She said the district council Sialkot had provided Rs 100,000 as special funds each to all the 124 rural union councils (UCs) in Sialkot, Daska, Sambrial and Pasrur tehsils.
Since Independence, it is for the first time that government has announced special funds for enhancing milk processing capacities.
Last August, Egypt's Finance Minister Hany Kadry Dimian publicly claimed that the total size of the special funds did not exceed $3.
Revenues of the budgetary institutions consist of special funds and depend on sales of production, execution of works and services according to the basic principles of the budgetary law in Kyrgyzstan.
Summary: ALGIERS- The deputies of People's National Assembly (APN, Lower House of Parliament) have recommended on Sunday during the presentation of the bill on 2008 budget execution, the streamlining of special funds and the control of budget forecasts meant for the financing of public programmes.
President Ali Abdullah Saleh issued Tuesday laws on linking the state general budget (central and local authorities), independent and supplement budgets, special funds and economic units for the fiscal year 2010.
5 million--ends up every year in the special funds budget, money used by the Captive Division to administer and monitor licenses.
Under the existing rules, revenues from the sale of assets that were paid for out of special, targeted city funds would need to go back to those special funds -- and not the city's general coffers.
AN ELEMENTARY SCHOOL in the small Sierra Nevada town of Colfax, California, entered the era of educational accountability this year when the state withheld $31,000 in special funds on the grounds that 69 American Indian students had failed to measure up academically.

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