SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
'13 
JUL 2? 
,'\'1:1 fl 
SENATE 
'.1.". t-
.) ~ '-~-
, 
Senate Bill No. 
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 country 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 
govemment 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&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. 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 
968 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
~r\l;,t? 
I@fhfi uf It:;, !!, ~ ?br~ 
... i __ f-
INCREASING 
THE 
YEARLY 
ALLOCATION 
FOR 
SCIENTIFIC 
AND 
TECHNOLOGIAL ACTIVITIES (STA) 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
This Act be known as the "Science and Technology 
Funding Act of 2013". 
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 AO 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 Implementation. The allocation for scientific and 
technological activities (STA) shall be gradually increased until it reaches the 
prescribed norm on the 5th 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 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 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 sues 
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 sues 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 agencylinstitute. 
SEC. 9. Implementing Rules and Regulations (IRR). The DOTe shall 
prepare the implementing rules and regulation 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 the Speaker of the House of 
the Representatives and the President of the Senate before any proposed annual 
appropriation bill shall tie taken by both chambers for final consideration and 
approval. 


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