rdi: the budget process

1

RDI: THE BUDGET PROCESSRDI: THE BUDGET PROCESS

Madrid, June 2008 Carmen Gil-Ruiz Gil-Esparza

Dirección General de Presupuestos

2

IndexIndex

1. Introduction to the Spanish RDI System

2. The RDI policy: A priority

3. The formulation process of the draft Budget

4. The Budget documents

3

INTRODUCTION TO THE INTRODUCTION TO THE

SPANISH RDI SYSTEMSPANISH RDI SYSTEM

4

The Spanish System of Science & Technology

Plenary Session

Permanent

CAS

General Council

General Council

Economic and Social

Council

Universities Companies

Public investigation centres Innovation Centres and other organisations

MINISTRY OF SCIENCE AND INNOVATIONAND OTHER MINISTRIES WITH R+D+I PERFORMANCES

5

The National Reform Program

Pillar 4: The R&D and Innovation Strategy (INGENIO 2010) Objectives

Increase the ratio R&D investment/GDP Raise private contribution to R&D investment Reach EU-15 average in the percentage of DGP devoted to ITCs

Measures More resources Focus on strategic actions (CENIT, CONSOLIDER, Avanz@,

Euroingenio) Regulatory reforms System to monitor & evaluate the policy

6

ENCYT, National RDI PlanENCYT, National RDI Plan

The National Strategy of Science & Technology (ENCYT) Basic principles (3) Strategic objectives (6)

National RDI Plan 2008-2011: Budgetary resources

Budgetary resources of the Public Administrations for the financing of the National R+D+I Plan for the years 2008-2011 (in rates of pluriannual growth)

YEAR AGE CCAA R+D/GDP % OF PRIVATE ENTERPRISE FINANCING

2008 16 % 16 % 1,6 % 53 %

2009 16 % 16 % 1,8 5 54 %

2010 16 % 16 % 2,0 % 55 %

2011 16 % 16 % 2,2 % 55 %

7

THE RDI POLICY: A PRIORITYTHE RDI POLICY: A PRIORITY

8

Progress in the 2004-2008 periodProgress in the 2004-2008 period

2004 2005 2006 2007 2008

Civilian Research 2.987 3.688 4.869 6.541 7.768

% over the total policy 68,5% 73,5% 74,4% 80,5% 82,4%

Military Research 1.373 1.330 1.677 1.582 1.660

% over the total policy 31,5% 26,5% 25,6% 19,5% 17,6%

TOTAL R+D+i POLICY 4.360 5.018 6.546 8.123 9.428

CONSOLIDATED GENERAL STATE BUDGETS (M€)

INVESTIGATION POLICY (Chapters 1 to 8)

9

Distinction between civil & military expenditure

Ministry of Science and Innovation

2009 budgetary forecast

Progress in the 2004-2008 periodProgress in the 2004-2008 period

10

RDI expenditure distribution: MinistriesRDI expenditure distribution: Ministries

CONSOLIDATED GENERAL STATE BUDGETS RESEARCH POLICY

2008-2007 Variation 2007

Budget 2008

Budget M€ % Δ

1. CIVILIAN RESEARCH (1a+1b) 6.540,56 7.767,60 1.227,04 18,8

1.a) NON FINANCIAL EXPENDITURE 3.426,25 3.886,81 460,56 13,4

Ministry of Education and Science 1.954,46 2.176,64 222,18 11,4

Ministry of Industry, Tourism and Commerce 1.011,60 1.168,31 156,71 15,5

Ministry of Health and Consumtion 333,58 367,02 33,44 10,0

Other Ministries 126,61 174,84 48,23 38,1

1.b) FINANCIAL EXPENDITURE 3.114,31 3.880,79 766,48 24,6

Ministry of Education and Science 1.185,37 1.525,85 340,48 28,7

Ministry of Industry, Tourism and Commerce 1.928,66 2.244,66 316,00 16,4

Other Ministries 0,28 110,29 110,01 39.287,6

11

RDI RDI expenditure distribution: Chaptersexpenditure distribution: Chapters

2007 Budget 2008 Budget % Δ

M€ % / total M€ % / total 08/07

I. Personnel expenses 517,20 7,9 541,92 7,0 4,8

II. Current expenses in goods and services 144,97 2,2 166,98 2,1 15,2

III. Financial expenses 0,02 0,0 0,02 0,0 0,0

IV. Current transfers 217,18 3,3 279,38 3,6 28,6

Current operations 879,37 13,4 988,30 12,7 12,4

VI. Real Investment 360,64 5,5 412,71 5,3 14,4

VII. Transfers of Capital 2.186,22 33,4 2.485,80 32,0 13,7

Capital Operations 2.546,86 38,9 2.898,51 37,3 13,8

NON FINANCIAL OPERATIONS 3.426,24 52,4 3.886,81 50,0 13,4

VIII. Financial actives 3.114,32 47,6 3.880,79 50,0 24,6

TOTAL 6.540,56 100,0 7.767,60 100,0 18,8

CONSOLIDATED GENERAL STATE BUDGETS RESEARCH POLICY

12

RDI expenditure distribution: ProgrammesRDI expenditure distribution: Programmes

2007 Budget 2008 Budget M€ % / total M€ % / total

% Δ 08/07

462M. Sociological & constitutional research & studies 13,40 0,2 14,32 0,2 6,8 462N. Statistical & economical research and studies 7,16 0,1 7,61 0,1 6,3

463A. Scientific research 726,45 11,1 760,67 9,8 4,7 463B. Foster. & coord. of the scientific & technical research 1.456,52 22,3 1.905,92 24,5 30,9

465A. Health related research 333,80 5,1 417,25 5,4 25,0 466A. Education related research & evaluation 5,52 0,1 5,76 0,1 4,4

467A. Astronomy & astrophysics 15,93 0,2 18,83 0,2 18,2 467B. Research, development & experim. in Transp. & Infr. 14,30 0,2 98,57 1,3 589,1

467C. Technological-industrial R&D 2.146,98 32,8 2.553,93 32,9 19,0 467D. Agrarian research and experimentation 71,16 1,1 83,16 1,1 16,9 467E. Oceanographic & fishing research 52,12 0,8 68,05 0,9 30,6 467F. Geologic-mining and environmental research 66,52 1,0 76,33 1,0 14,7

467G. Information Society R&D 687,75 10,5 845,68 10,9 23,0 467H. Energy, technology and environment research 123,87 1,9 111,06 1,4 -10,3 467I. Technological innovation in telecommunications 819,07 12,5 800,45 10,3 -2,3

TOTAL CIVIL RESEARCH 6.540,56 100,0 7.767,60 100,0 18,8

13

THE FORMULATION PROCESS OF THE THE FORMULATION PROCESS OF THE DRAFT BUDGETDRAFT BUDGET

14

STABILITY PROGRAM

BUDGETBUDGET

Stability objective and expenditure’s limitStability objective and expenditure’s limit

Budgetary scenario

Cycle reportCycle report

Pluriannual frameworkPluriannual framework

16

Stability objective and expenditure’s limit (1)Stability objective and expenditure’s limit (1)

Cycle report enclosed to the stability objective’s proposal It sets the situation of the economy in the economic cycle Produced by the Ministry of Economy and Finance with

information provided by: National Institute of Statistics (INE) National Central Bank (BE) International institutions’ forecasts

17

BUDGET

PASS

NO PASSPARLIAMENT

FISCAL &FINANCIAL

POLICY COUNCIL

NAT. COMMISSIONOF LOCAL

ADMINISTRATION

CONSISTENT WITH THE STABILITY PROGRAM

GOVERNMENT

Stability objective and expenditure’s limit (2)Stability objective and expenditure’s limit (2)

18

• Medium term planning instrument (3 years)

• Prior to the Budget

• Expenditure and revenue scenario

• Organic distribution of the available resources and development through pluriannual programs

Budgetary scenariosBudgetary scenarios

19

• The scenario are developed in pluriannual programs (objectives, actions, resources, investments and performance indicators)

• Approved by each Minister• Sent to the Minister of Economy and Finance for the development

of the general scenario• Programs for the ministries and for the administrative managing

bodies• Programs for the public companies

Budgetary scenariosBudgetary scenarios

20

STABILITY OBJECTIVE AND EXPENDITURE’S LIMITSTABILITY OBJECTIVE AND EXPENDITURE’S LIMIT

BUDGETARY NEGOTIATIONBUDGETARY NEGOTIATION

COUNCIL OFMINISTERS

COUNCIL OFMINISTERS

COMMISSION OFEXPENDITURE POLICIES

COMMISSION OFEXPENDITURE POLICIES

COMMISSIONS OFPROGRAMS ANALYSIS

COMMISSIONS OFPROGRAMS ANALYSIS

COUNCIL OFMINISTERS

COUNCIL OFMINISTERS

Establishment of the budgetaryframework

Criteria and priorities

Endowment of resources

BUDGETBUDGET

STABILITY PROGRAMSTABILITY PROGRAM

Ministry of Finance(DGP)

Managing bodies(OP)

Budgetary process. Participant bodiesBudgetary process. Participant bodies

21

Budget developmentBudget development

Art. 36 LGP (General Budgetary Law)1. Fixment of the maximum non financial expenditure2. Procedure established by Ministerial decree by the MoF

MoF criteria, limits, priorities. Commission of Expenditure Policies Ministries and governmental bodies with differentiated budgetary endowments

send their budget proposals The expenditure and the revenue budget proposals of the administrative

agencies & bodies and of the bodies appointed to them are sent by the respective Ministries

The current, capital & financial accounts of the public companies & foundations are sent by the respective Ministries

Every budget proposal is sent together with an annual objective report for every policy program

3. Resources budget developed by the MoF4. Informatic proceedings and deadlines set by the MoF5. Draft presented to the Government by the MoF

22

Budget draw up Ministerial decreeBudget draw up Ministerial decree

It defines the budgetary structures It defines the functions and composition of the participant organs

Commission of Expenditure Policies Commissions of Programs Analysis Commission of Income Budgetary Commissions

Documentation and terms of remission

23

COMMISSION OF EXPENDITURE POLICIES

- Minister of Economy and Finance (President)- Ministers- Finance and Budget Secretary of State (Secretary)

PARTICIPANTS

- Specify expenditure priorities to fufill theGovernment's budgetary objectives.

- Analyse budgetary policies, publicexpenditure actions, aimed objectives and theavailable resources & establish allocationcreteria.

PURPOSE

24

PROGRAMS ANALYSIS COMMISSIONS

- Finance and Budget Secretary of State (President)

- Budget and Expenditure General Secretary (Coordinator)

- Ministries´ representatives

- Representatives of the General Budget Office (DGP)

PARTICIPANTS

- Analysis of the expenditure programs,their objectives and the fulfillment of thoseobjectives- Cost forecast and financial endowmentsneeded

PURPOSE

As many as Ministries

COMMISSIONS

PROGRAMS ANALYSIS COMMISSIONS

PARTICIPANTS

- Finance and Budget Secretary of State (President)

- Budget and Expenditure General Secretary (Coordinator)

- Ministries' representatives

- Representatives of the General Budget Office (DGP)

COMMISSIONS OF PROGRAMS ANALYSIS

PARTICIPANTS

25

THE BUDGET DOCUMENTSTHE BUDGET DOCUMENTS

26

GENERAL STATE BUDGETS

DOCUMENTATION THAT IS PRESENTED BEFORE THE CONGESS & SENATE

RED SERIES G.S.B. Law

GREEN SERIES Auxiliary Information

YELLOW SERIES Mandatory Information

GREY SERIESOptional & complementary

information

27


DOCUMENTATION PRESENTED BEFORE CONGRESS & SENATE

RED SERIES (G.S.B. Law)

- Text of the Law.- Budget of Incomes.- Budget of Expenses by Programs; Memories of Objectives.- Binding Projects of Investment Annexes- Annexes of Projects financed by the ICF.- Financial statements and Accounts of Public Organisms.- Current and Capital Accounts.- Summaries of Incomes and Expenses.

28



GREEN SERIES (auxiliary information)

-- Annexes with the organic and economic development of the incomes and expenses states.

- Annexes of Real Investments and the pluriannual programming.

- Annexes of Personnel.

29



YELLOW SERIES (mandatory information)

- Financial and Economic Report.

- Memory of Fiscal Benefits

- Memories

- Consolidated General State Budgets.

- Annex of Financial Flows Spain - European Union.

30



GREY SERIES (optional and complementary information)

- Report on the Cession of Tributes to the Autonomic Communities.

- Liquidation of the previous Budget.

- Advance of the Liquidation of the effective budget.

- Operation Expenses and Investments of the Bank of Spain.

31

Objectives reports: An exampleObjectives reports: An example

Program 463B: « Promotion and coordination of the scientific and technical research »

Structure:1. Description and purposes

2. Activities (promotion of Human Resources, international cooperation activities, National RDI Plan, National Museum of Science and Technology…)

3. Executive bodies (4)

4. Objectives and fulfillment indicators: 11 objectives, each of them with its own group of indicators

32

Objectives reports: An exampleObjectives reports: An example

INDICATORS

2006 2007 2008

Budgeted Done BudgetedForeseen execution

Budgeted

New aids for the instruction of research personnel (FPI)(Number)

950 818 902 1.000 1.000 New incorporations of doctors to R+D centers by

means of contract (Ramón y Cajal and Juan de la Cierva)

(Number) 600 553 1.500 570 550 New incentives to the creation of stable positions ( I3

and Severo Ochoa) (Number) 306 222 376 350 300

Requests granted on the total presented(Percentage) 25,00 26,80 25,00 27,00 25,00

Investigators who take part in this objective, on the total of investigators of the public R+D system

(Percentage) 3,10 s.d. 3,10 s.d. s.d. Investigators of the public R+D system on the active

population(Percentage) 4,80 s.d. 5,00 s.d. s.d.

OBJETIVE / ACTIVITY: Increase and improvement of human resources

rdi: the budget process

Documents