ABSTRACT
The new system of planning and economic stimulation of industrial production strengthens the material incentive of the enterprises' personnel in the growth of production, in increasing profitability, and in the best use of productive assets. The transfer to the new system will begin on the initiative of industrial enterprises and party organizations. For enterprises transferring to the new conditions of work the list of indicators set by the plan was reduced. The new conditions of the enterprises' work enhance both the possibility and the necessity of higher rates of- growth of labor productivity as a basis for increasing the enterprises' production and income. One of the central questions of the new system of planning and economic stimulation is the establishment of funds for material encouragement of workers and funds for social-cultural measures and housing construction. Normative assignments to the fund for production development from profits are calculated in a procedure similar to the assignments to the material encouragement fund.
