Accumulation Fund

Accumulation Fund

 

the part of national income that is used to expand the process of reproduction, that is, the part spent on fixed capital stock, circulating capital, and reserves. The surplus product is the source of the accumulation fund.

The accumulation fund is realized in the growth of national wealth. In physical terms, the fund consists of the means of production (buildings, structures, machinery, equipment, supplies, raw materials, fuel) used for production accumulation and commodities produced for consumption to ensure both the growth of fixed capital stock in the nonproductive sphere (houses, schools, hospitals, stadiums) and the buildup of reserves of the means of subsistence for new members of the production work force. The accumulation fund also includes the increases in the reserve and contingency funds; these funds consist of means of production and consumer goods accumulated in order to prevent interruptions in the process of reproduction.

Under capitalism, the accumulation fund is the source of capital accumulation, and it serves as the material basis for the expansion of capitalist forms and methods of exploiting the working people. In a socialist economy, the fund forms the basis for the growth and improvement of production and for the strengthening and development of socialist production relations. In value terms, approximately 60 percent of the accumulation fund of the USSR is devoted to increasing fixed productive and nonproductive assets through capital investment. Under the ninth five-year plan (1971–75), capital investments, including the replacement of worn-out capital stock, totaled 500 billion rubles. Increases in circulating capital come from the net income of enterprises and from budget and credit funds, while increases in reserves and inventories come mainly from the state budget and, to a lesser extent, from the net income of cooperative farms and the personal income of the population (home building, livestock raising).

The accumulation fund constitutes approximately one-fourth of the national income of the USSR. Socialism makes possible the optimum combination of high levels of accumulation and high growth rates in the consumption fund.

P. V. TALMINA

References in periodicals archive ?
There are two constituent funds (CFs) under the DIS, namely, the Core Accumulation Fund with 60 per cent relatively higher risk assets and 40 per cent relatively lower risk assets, and the Age 65 Plus Fund with 20 per cent relatively higher risk assets and 80 per cent relatively lower risk assets.
This way, the amount of accumulation fund, on the one side, is always limited by the amounts of the surplus product of the company created, and from the other--it is itself the key factor of growth of this surplus product on the whole.
As long as the shadow account is positive, the policy will stay in force, even if the cash values of the normal UL accumulation fund turn and stay negative.
Gordon was currently serving on the Board of Managers of Paul Revere Variable Annuity Contract Accumulation Fund.
Marat Sultanov said the Defined Contribution Pension System will be introduced since July 1, 2009, with most funds directed to the accumulation fund by 2012.
Even if a super fund member scales back their working hours to work part time, they can take advantage of the transition to retirement rules, which allows members to continue contributing to their accumulation fund, whilst drawing an income from it at the same time, subject to certain government conditions.
First, it is important to realize that at the end of the 20-year term of the Horizon Life policy an amount equal to 100% of the premiums paid for insurance is deposited in the insured's accumulation fund.
A company might choose to establish an accumulation fund in anticipation of the loss of a "key," or it might wait for the inevitable and then borrow funds.
From the Oppenheimer Family comes the Daily Cash Accumulation Fund (800-525-7048), yielding 5.
In assessing prereform incomes, furthermore, one must take into account the value of the newly created liquid assets added annually to the accumulation fund and the value of the fixed assets created by joint labor in capital construction, which occupied the labor force for many months every year.
The amount and timing of premiums will affect the death benefit, the accumulation fund and the duration of insurance.