The purpose of this paper is to present the government-employee incentive program as a method by which government deficits can be reduced or eliminated, and government surpluses can be generated. Section 2 deals with the nature of the incentive plan, section 3 deals with the incentive chain in relationship to the plan, section 4 makes some remarks concerning the incentive program, and section 5 deals with statistics gathering under the incentive program. Section 6 makes some concluding remarks. The analysis begins by holding real appropriations constant. Government employees are given, in the form of additional income, a stated percent of the total amount saved out of initial appropriations. Each employee, in each incentive unit, receives an amount equal to the proportion that his/her salary represents of total salaries paid for that incentive unit.