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FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
7 <,i,._ 
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OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
Senate Bill No. 
494 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The Philippines is falling behind its neighboring countries in the area of 
science and technology research and development. Unless appropriate 
immediate action is done to reverse the trend, the county may find more 
difficulty in securing a place in this increasingly competitive world, especially in 
the advent of globalization. 
It is ironic that despite continuous economic hardship, the Philippine 
government still has not done much for the development of science and 
technology which could be the tool to turn the situation around. 
For years, the country's annual Research and Development (R&D) budget 
receives a measly average of 0.21% share from the total Gross Development 
Product (GDP) or an amount between P3 to 4 million, which is only equivalent to 
the R 8, D budget of a single firm in the United States. In Asia, Japan allotted the 
most for R & D with 2.92%. 
This explains why they are among the top 
technologically advanced countries in the world. 
Korea comes second with 
2.33%. Singapore comes next with 1.12% followed by Malaysia and Indonesia 
with 0.37% and 0.26% respectively. 
This bill calls for the allocation of at least 1% of the country's Gross 
National Product to the annual budget of S & T activities which, incidentally, is 
the norm prescribed by UNESCO. In order for us to assure the upliftment of our 
already crippled economy, the passage of this bill is earnestly sought. 
/ 
U s e n a t o r  


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
7 
J{JL -2 :i 4 - 
8. :,. , 
First Regular Session 
) 
f 
S E N A T E  
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Senate Bill No. 494 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
INCREASING THE 
YEARLY 
ALLOCATION 
FOR 
SCIENTIFIC AND 
TECHNOLOGIAL ACTIVITIES (STA) 
Be it enacted by the Senate and House of Represenfafives of fhe Philippines in 
Congress assembled: 
SECTION 1. 
This Act be known as the "Science and Technology 
Funding Act of 2007." 
SEC 2. Policy Statement. In order to sustain economic development and 
ensure a high level of scientific and technological activities (STA), the State shall 
endeavor to allocate an amount equivalent to the prescribed UNESCO norm of 
the least 1% of the total Gross National Product (GNP) as annual budget for 
scientific and technological activities (STA) created under Administrative Order 
No, 123, as amended by A 0  No. 202, series of 1995. 
SEC 3. Computation of Allocation. The GNP to be used in determining 
the annual budget for science and technology for a particular calendar year shall 
be the GNP of the immediately preceding year. 
SEC 4. Phase lmplemenfafion. The allocation for scientific and 
technological activities (STA) shall be gradually increased until it reaches the 
prescribed norm on the 51h year which shall include both government and private 
sector activities. 
The first five years shall focus on the enhancement of 
agricultural productivity to ensure sufficiency of basic food and services and 
initiated system towards the production of more elaborately transformed 
products. For the 6'h year and onwards, one percent of Gross National Product 
(GNP) shall be allocated solely for research and development (R & D); activities 
of the government and private sectors and shall aim to attain competency and 
mastery in the production and processes. 
SEC 5. Definition of Terms. For purposes of this Act, Scientific and 
Technological Activities (STA) shall be defined as all systematic activities which 
are closely concerned with generation, advancement, dissemination, and 
application of scientific and technical knowledge in all fields of Science and 
Technology, STA include the following: 
Research and Experimental 


Development (STS); and Scientific and Technical Education and Training 
(STET). 
a) Research and Development (R& D) is any systematic and creative 
work undertaken in order to increase to stock of knowledge of man, 
culture and society, and the use of this knowledge to devise new 
applications. 
b) Scientific and Technological Services (STS) is any activity concerned 
with scientific and experimental development and contributing to the 
generation, dissemination and application of scientific and technical 
knowledge. 
c) Scientific and Technical Education and Training (STET) are activities 
comprising higher education and training leading to a university 
degree, postgraduate and further training organized lifelong training for 
scientist and engineers and specialized non-university higher 
education. 
SEC 6. The Department of Science and Technology. The Secretary of 
the Department of Science and Technology (DOST) in consultation with SUCs 
identify priorities for research and development and S& T capability development 
which would contribute to national development and progress, and to prepare the 
corresponding budget in pursuant thereto. 
SEC 7. R & D Appropriations. The appropriations pertaining to R& D in 
the natural, agricultural, technological and engineering science for various 
departments, bureaus, offices, agencies and SUCs within the Science and 
Technology Agenda for National Development (STAND) shall be released upon 
recommendation of the Secretary of the DOST. For this purpose, the DOST 
shall issue the necessary guidelines for the implementation of this provision. 
SEC 8. 
Special Fund for R & D. A special fund for research and 
development to be known as the "R & D Fund" shall be created and managed by 
DOST, and constituted from the following sources: 
a) allocation of 1 percent of GNP for S& T activities; 
b) all unused R& D allocations; and 
c) all income derived from R& D activities. 
The fund shall be used only for R & D activities of the agencyhnstitute. 
SEC 9. lmplementing Rules and Regulations (IRR). The DOTC shall 
prepare the implementing rules and regulation of this Act. 
SEC. I O .  Annual Compliance Reporf - The Secretary of the Department 
of Budget and Management (DBM) shall make a report of the President's 
compliance with Section 2 of this Act to the Speaker of the House of the 
Representatives and the President of the Senate before any proposed annual 
appropriation bill shall be taken by both chambers for final consideration and 
approval. 


SEC 11. Effectivity. This shall act shall take effect upon its approval. 
Approved,