progress In the national economy, comprising of the fund of material Incentive <FMI), the fund of socio-cultural measures and residential construction, and the fund for the development of production. These three are cal led funds of economic stimulation <FES>. The major source for the formation of FES are the deductions from the profit of the enterprises In the branch of the Industry, produced by reducing the prime cost of the product as a result of Introducing scientific-technical achievements. This source Is most significant because the actual result, gained by the developmeent engineers, stands as concrete profit, which Is reflected In the balance of Income and expendltures·of the ent•r­prlse. The fund-forming Index for determining the magnitude of deductions from the profit Is the actual economic effect from Introducing the development. Up to 16.51 of the economic effect In some branches Is deducted from the profit to the funds, while In others It Is less. The percent of deductions Is established on the basis of calculations made by the central organs. The ministries have the right to establIsh differential values of the deductions tor their enterprises and organizations within the limits of the total values of planned deductions, depending on the levi and significance of the development. The ministries exercise this right on a wide scale, establishing differential scales, considering. for example. the fulfllme t of assignments 0 It) co ~ of scientific-technical programs, the availability or lack of Author's Certificates or patents, etc. The means, produced fro• this source, depending on the ministry, constitute from 20·to "OJ In the total amount of means In ·the funds of economic stimulation. The next source Is the allowances to the prIce of new h Jgh"ly effective products, that have been mentioned earlier. Alongside the reduction of the prime cost, this source Is-the case when the 
**Analysis**
The text discusses the concept of funds of economic stimulation (FES) and their formation, which is closely related to the development of industry and the reduction of prime costs through the introduction of scientific-technical achievements. The text also mentions the role of ministries in establishing differential values for deductions from profits, which suggests a focus on national economic development. Additionally, the text touches on the theme of scientific-technical programs and the development of new products, which is relevant to the category of Science and Technology.

**Category**
Economic development, Industry, Science and Technology