Generally, the budget has mainly two functions. First, it estimates, as realistically as possible, the cost of completing the objectives identified in the project proposal. The sponsoring agencies will use the budget details to determine whether the proposal is economically feasible and realistic. Secondly, the budget provides a means to monitor the project's financial activities over the life of the project.Funding of science and technology (S&T) at the national and state levels since the launch of economic reforms in India.

1. It brings out that though more recently an improvement has been experienced in the gross budgetary support for S&T expenditure vis-à-vis other socio-economic activities but research and development (R&D) expenditure as a percentage of GDP is still the lowest among the BRICS group of countries. A comparative assessment of the current level of per capita national R&D expenditure also shows that the country is spending far less on R&D than the BRICS group of countries.

2. Analysis indicates that during the period of economic reforms mainly strategic S&T investments experienced an increase in their shares within publicly funded S&T. Assessment of the latest shares of civilian and strategic S&T departments shows that in the more recent allocations about sixty-four percent of investment in science and technology is going to the strategic S&T organizations, namely Defence Research and Development Organization (30.3%), Department of Atomic Energy (12.2%) and Department of Space (21.3%).

3. It also indicates that though in terms of sectoral contributions the share of Central Government itself declined from 79% to 71% in percentage terms, but the Central Government is still a major source of funds for the conduct of activities of civilian R&D in India.

4. It shows that while the share of private sector in national R&D expenditure increased but the private sector R&D intensity did not rise during the period of economic reforms.

5. It indicates that the central government dependent pattern of public funding of S&T continued. The share of state governments in S&T investment increased only for the states of Gujarat, West Bengal and Maharashtra.

6. Analysis of the pattern of extra-mural research (EMR) project funding indicates that its share in total S&T funding has decreased from the earlier level of nine percent to seven percent of expenditure on S&T by Central Scientific Departments.

7. it also indicates that the strategic S&T departments, receiving close to 63.8 % of the S&T outlays, provide only 7.77 % of the total EMR funds. The share of EMR funds is also small and decreasing in the case of socio-economic ministries.

8. It points out that though the share of public funding for thematic research is now higher than academic research schemes but the share of innovation-targeted research schemes still account for only 1 % of the total EMR funding.

9. Analysis of the EMR projects indicates that the same top ten institutions continue to attract a significant share of EMR funding.

10. The main change observed during the period of economic reforms relates to the fact of increased R&D funding to business enterprises for technology development from the government. In both, the S&T departments as well as the user departments, the Central Government could establish a wide variety of mechanisms for aiding the industry in technology development

Article Financing of S&T in India

Generally, the budget has mainly two functions. First, it estimates, as realistically as possible, the cost of completing the objectives identified in the project proposal. The sponsoring agencies will use the budget details to determine whether the proposal is economically feasible and realistic. Secondly, the budget provides a means to monitor the project's financial activities over the life of the project.Funding of science and technology (S&T) at the national and state levels since the launch of economic reforms in India.

1. It brings out that though more recently an improvement has been experienced in the gross budgetary support for S&T expenditure vis-à-vis other socio-economic activities but research and development (R&D) expenditure as a percentage of GDP is still the lowest among the BRICS group of countries. A comparative assessment of the current level of per capita national R&D expenditure also shows that the country is spending far less on R&D than the BRICS group of countries.

2. Analysis indicates that during the period of economic reforms mainly strategic S&T investments experienced an increase in their shares within publicly funded S&T. Assessment of the latest shares of civilian and strategic S&T departments shows that in the more recent allocations about sixty-four percent of investment in science and technology is going to the strategic S&T organizations, namely Defence Research and Development Organization (30.3%), Department of Atomic Energy (12.2%) and Department of Space (21.3%).

3. It also indicates that though in terms of sectoral contributions the share of Central Government itself declined from 79% to 71% in percentage terms, but the Central Government is still a major source of funds for the conduct of activities of civilian R&D in India.

4. It shows that while the share of private sector in national R&D expenditure increased but the private sector R&D intensity did not rise during the period of economic reforms.

5. It indicates that the central government dependent pattern of public funding of S&T continued. The share of state governments in S&T investment increased only for the states of Gujarat, West Bengal and Maharashtra.

6. Analysis of the pattern of extra-mural research (EMR) project funding indicates that its share in total S&T funding has decreased from the earlier level of nine percent to seven percent of expenditure on S&T by Central Scientific Departments.

7. it also indicates that the strategic S&T departments, receiving close to 63.8 % of the S&T outlays, provide only 7.77 % of the total EMR funds. The share of EMR funds is also small and decreasing in the case of socio-economic ministries.

8. It points out that though the share of public funding for thematic research is now higher than academic research schemes but the share of innovation-targeted research schemes still account for only 1 % of the total EMR funding.

9. Analysis of the EMR projects indicates that the same top ten institutions continue to attract a significant share of EMR funding.

10. The main change observed during the period of economic reforms relates to the fact of increased R&D funding to business enterprises for technology development from the government. In both, the S&T departments as well as the user departments, the Central Government could establish a wide variety of mechanisms for aiding the industry in technology development

Article Financing of S&T in India

Dear Prem, agreed with your inputs and summarise nicely. Please help to answer Budgetary support for Public and Private. Your answer elaborate on Public and also raise point 4 for private sector R&D.

You ask the private sector to co-sponsor some of your projects that will help them develop their human resource base, especially the IT companies. The latter would help to supplement your budget. I hope this helps.

Best regards,

Debra

Serbia has achieved good progress in recent years in the area of R&D. Even with the significant progress in the development and modernization of the R&D and innovation system, several challenges remain:

 brain drain,

 low budgetary allocation for science,

 investment in science,

 effectiveness of research and innovation activities,

 weak cooperation between the public research sector and the business sector.

The objective of research and development policies is to increase the quality and quantity of R&D, create conditions for R&D cooperation and create efficient public research infrastructure...

The Strategy proposes a timetable of increasing investments in science and technology by 0.2% GDP per year, which would mean that, in 2015, Serbia would surpass 1% of GDP investments in science. In addition to the budget investments, a 400 million Euro investment into science and technology infrastructure is planned during the realization of the Strategy and in cooperation with international financial institutions...

The budget is no more simple instrument of balancing between income and expenditure. It becomes engine of growth.In modern economics, technology/knowledge is the fifth factor of production. Budgetary allocation for the S & T-R&D boosts the development.

Each Country has its goal for development and certainly with budget boundary. The country with more focus on research will certainly have edge on technology.

How to decide the budget?

Thanks Harshvardhan, Your reference The Science Budget.pdf  is really informative in line with others reference. The Federal Government has major role in budgeting science and States follows. Now Innovation is more scientific terminology for budgeting, is it? 

Dear Harshvardhan Singh,

Look the links. May be useful.

https://www.oecd.org/sti/Draft_Report_public_funding_instrument_final.pdf

https://stats.oecd.org/Index.aspx?DataSetCode=MSTI_PUB

Regards, Shafagat

How is the budget decided? This is about EU budget! This is very resourcful document with many links.

http://ec.europa.eu/budget/explained/management/deciding/decide_en.cfm

http://ec.europa.eu/budget/explained/management/deciding/deciding_detail/decide_detail_en.cfm

http://ec.europa.eu/budget/explained/budg_system/structure/struct_en.cfm

http://ec.europa.eu/budget/explained/management/deciding/budgettaryprocedure.pdf

The crucial point is about complementary assets to R&D; you may be interested into the enclosed article.

Regards, MV

Dear Vivarelli,

Thanks for the shared book and the contents are more usefull for my research work particularly section 3 and 4 on the long-term strategies that can be considered as permanent solutions to the MIT  In particular, The discussion on what can be proposed as a condition sine qua non for triggering structural

and technological change, which is the availability of competences and capabilities

able to maximize both the endogenous supply of knowledge by a middle income DC

and its ‘‘absorptive capacity’’ of knowledge coming from more advanced

economies.The Conetent on structural change and innovation, trying to

map—using the taxonomies put forward by the innovation literature—the concrete

ways through which a middle income country can engage in a technological

catching-up

In Indian context since we have to encourage investment in R & D, the budgetary allocation to  R & D must be sector-wise and it should not be less than 25% of the total budgetary allocation to the sector, both by public and private sectors. The R & D  cess be collected from the beneficiaries particularly corporate sector; the duplication in allocation of grants to R & D by government agencies like UGC etc must be stopped. the grants to R & D must be on result-oriented basis. This method is suitable to make things practical.

Dear Pangannavar- Thanks for sharing information in India context. You have a question in answer - How to stop duplication of research work? In my opinion, sharing is best option and sharing in open access. Please clarify terminology you want express with 25%, more elaboration, please