Also found in: Financial.
in the USSR, a fund set up at enterprises operating on the basis of profit-and-loss accounting in order to increase worker incentive. The enterprise fund was introduced in August 1955.
The enterprise fund was set up on the basis of norms ranging from 1 to 6 percent of planned and from 30 to 60 percent of over-plan profit, the norms depending on the level of profitability. The uses of the fund, with expenditures requiring the consent of the factory or plant trade union committee, were as follows: up to 40 percent was used to improve the service amenities for workers, to finance bonuses and stays at houses of rest and sanatoriums, and to provide grants to individuals in need; at least 20 percent went for the expansion of production, the introduction of new technology, and the modernization of equipment; and at least 40 percent was devoted to the construction and repair of housing and the construction of service facilities.
As enterprises shifted to the new system of planning and economic incentives, the enterprise fund was replaced by three special economic incentive funds, namely the material incentive fund, the social-cultural and housing fund, and the fund for the expansion of production.
B. E. PEN’KOV