ncial relations create an active system for controlling the efficient use of at located resources. Thus. the Improvement of financing scientific and technological progress Is of maJor sig­nificance for Its management. INDICES OF S AND T FINANCING Financial Indices occupy an important place In S and T development plans. The allocation of financial resources should be based on optimum correlations among resources ~hannel led to R&D activities, mastering and Introduction of new technology• Improvement of production assets. etc. This determines the stru­ cutre of expenses for the development of science and technology and Introduction of their achievements In the production. Opt!• mum development of various directions of scientific and technolo­ gical progress through preplanned proportions of resource alloca­ tion represents one of the major taks facing the financial system. Presented by K.A. Eflmov SOURCES OF FUNDS The development of scientific and technological progress depends to a great extent on the volume of resources allocated for financing •science-technology-production" syustem. While determining the amount of financial expenses for S and T progress for the national economy as a whole the following data are taken Into account: -nationel Income and Industrial J>roductlon growth rates; -targets set for scientific development for the next five­ year period -vol~~e and scale of scientific novelties to be Introduced In production. Depending on the sources of financing and target designation of theseS and T development measures, the funds are subdivided Into: -state funds -proper funds {centralized branch funds and reserves, as well as funds of production associations, enterprises and organizations) -credit funds (credits of the USSR State Bank and the USSR Construction Bank). The proportions of these funds are ·-determined by the significance and scale of S and T development measures as wei I as by the financial status of production associations, enterprises and scientific research organizations. 