THIRTEENTH CONGRESS
First Regular Session

H.No,__100

Tatroduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

This bill seeks to allocate at least one percent (1%) of the Gross National Product
(GNP) for scientific and technological activities (STA) the prescribed UNESCO norm for
developing countries. STA covers several areas, to include among others: Research and
Development (R&D), S&T Services (STS) and S&T Education and Training (STET).

The bill proposes the allocation for STA to gradually increase until it reaches the
prescribed norm on the 5" year which shall include both government and private sector
activities. The first five years shall focus on enhancement of agricultural productivity to
ire sufficiency of basic food and services and initiate system towards the production
of more elaborately transformed products. For the 6" year and onwards, one percent of
the GNP shall be allocated solely for R&D activities of the government and private
sectors and shall aim to attain competency and mastery in the production of elaborately
manufactured products and processes. The 1999 DOST budget is P2.8 B only. With a
GNP of P579.48 Billion for 1999, one percent (1%) is P57.948 Billion. Hence, a gap of
P55.148 Billion which should be attained within five years period beginning year 2000.

In the proposed measure, the DOST Secretary shall identify priorities for
Research and Development and S & T capability development programs and prepare the
corresponding budget thereto.

Furthermore, appropriations pertaining to R&D in the natural, agricultural,
technological and engineering sciences of various departments, bureaus, offices agencies,
state universities and colleges (SUCs) shall be aligned with $ & T priorities as identified
by the DOST.

A special fund for research and development to be known as “R&D Fund” shall
also be created and constituted from the following sources:

> Allocation of 1% of GNP for S&T activities
> Allunused R&D allocations;
> All income derived from R&D

Urgent passage of this bill is earnestly sought

Lac

JUAN EDGARDt ANGARA
Lone District, Province of Aurora


THIRTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

H.B.No.__100

Introduced by HON, JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
INCREASING THE YEARLY ALLOCATION FOR SCIENTIFIC AND
TECHNOLOGICAL ACTIVITIES (STA)

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Title. This Act shall be known as the Science and Technology
Funding Act of 2004.

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) as approved by the Science and Technological Coordinating Council
(STCC) created under Administrative Order No. 123, as amended by AO No. 125 and
AO No. 202, series of 1995.

SEC. 3. Computation of Allocation. The gross national product to be reckoned in
reaching the annual budget for science and technology for a particular calendar year shall
be the GNP of the immediately preceding year. However, should the country’s GNP
decreases, the annual budget for scientific and technological activities (STA) shall be
pegged at the GNP level before the decline.

SEC. 4. Phased Implementation. The allocation for scientific and technological
activities (STA) shall be gradually increased until it reaches the prescribed norm on the
Sth year which shall include both government and private sectors activities. The first
years shall focus on enhancement of agricultural productivity to ensure sufficiency of
basic food and services and initiate system towards the production of more elaborately
transformed products, For the 6th 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 of elaborately manufactured products and processes.

SEC. 5. Definition of Terms. For purposes of this Act, Scientific and Technical
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 (R&D), Scientific and Technological Services
(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 the 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

©) Scientific and Technical Education and Training (STET) are activities
comprising higher education and training leading to a university degree, post-
graduate and further training organized lifelong training for scientist and
engineers and specialized non-university higher education

SEC. 6. The Department of Science and Technology (DOST). The Secretary of
the Department of Science and Technology in consultation with the STC shall identify
priorities for research and development and S&T capability development program 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 sciences for various departments,
bureaus, offices, agencies and state universities and college (SUCs) within the Science
and Technology Agenda for National Development (STAND) shall be released upon
recommendation of the Secretary of 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 “R&D” shall be created and constitute 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 fiznd shall be used only for R&D activities of the agency/institute. The STC
shall develop the appropriate mechanism for the management of the R&D fund.

SEC. 9. Implementing Rules and Regulations (IRR). The STC shall prepare the
implementing rules and regulations of this Act.

SEC. 10. Annual Compliance Report. 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 Speaker of the House of Representatives and the President of the
Senate before any proposed annual general appropriation bill shall be taken by both
chambers for final consideration and approval

SEC. 11. Effectivity. This Act shall take effect upon its approval.

Approved.