RDI: THE BUDGET PROCESS
Madrid, June 2008
Carmen Gil-Ruiz Gil-Esparza
Dirección General de Presupuestos
1
Index
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
2
INTRODUCTION TO THE
SPANISH RDI SYSTEM
3
The Spanish System of Science & Technology
General
Council
Plenary Session
Permanent
CAS
MINISTRY OF SCIENCE AND INNOVATION
AND OTHER MINISTRIES WITH R+D+I PERFORMANCES
Universities
Public investigation centres
General
Council
Economic
and Social
Council
Companies
Innovation Centres and other organisations
4
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
5
ENCYT, 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 %
6
THE RDI POLICY: A PRIORITY
7
Progress in the 2004-2008 period
CONSOLIDATED GENERAL STATE BUDGETS (M€)
INVESTIGATION POLICY (Chapters 1 to 8)
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
8
Progress in the 2004-2008 period

Distinction between civil & military expenditure

Ministry of Science and Innovation

2009 budgetary forecast
9
RDI expenditure distribution: Ministries
CONSOLIDATED GENERAL STATE BUDGETS RESEARCH POLICY
2007
Budget
1. CIVILIAN RESEARCH (1a+1b)
2008
Budget
2008-2007 Variation
M€
%Δ
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
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
0,28
110,29
110,01
39.287,6
1.b) FINANCIAL EXPENDITURE
Other Ministries
10
RDI expenditure distribution: Chapters
CONSOLIDATED GENERAL STATE BUDGETS RESEARCH POLICY
2007 Budget
M€
% / total
2008 Budget
%/
M€
total
%Δ
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
0,02
0,0
0,02
0,0
0,0
217,18
3,3
279,38
3,6
28,6
879,37
13,4
988,30
12,7
12,4
360,64
5,5
412,71
5,3
14,4
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
3.114,32
47,6
3.880,79
50,0
24,6
6.540,56
100,0
7.767,60
100,0
18,8
III. Financial expenses
IV. Current transfers
Current operations
VI. Real Investment
VII. Transfers of Capital
VIII. Financial actives
TOTAL
11
RDI expenditure distribution: Programmes
2007 Budget
M€
462M. Sociological & constitutional
research & studies
2008 Budget
% / total
M€
% / total
%Δ
08/07
13,40
0,2
14,32
0,2
6,8
7,16
0,1
7,61
0,1
6,3
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
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
2.146,98
32,8
2.553,93
32,9
19,0
71,16
1,1
83,16
1,1
16,9
52,12
0,8
68,05
0,9
30,6
66,52
1,0
76,33
1,0
14,7
687,75
10,5
845,68
10,9
23,0
123,87
1,9
111,06
1,4
-10,3
819,07
12,5
800,45
10,3
-2,3
6.540,56
100,0
7.767,60
100,0
18,8
462N. Statistical & economical
research and studies
463A. Scientific research
466A. Education related research &
evaluation
467C. Technological-industrial R&D
467D. Agrarian research and
experimentation
467E. Oceanographic & fishing
research
467F. Geologic-mining and
environmental research
467G. Information Society R&D
467H. Energy, technology and
environment research
467I. Technological innovation in
telecommunications
TOTAL CIVIL RESEARCH
12
THE FORMULATION PROCESS OF THE
DRAFT BUDGET
13
Pluriannual framework
STABILITY PROGRAM
Cycle report
Stability objective and expenditure’s limit
Budgetary scenario
BUDGET
14
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
16
Stability objective and expenditure’s limit (2)
CONSISTENT WITH THE STABILITY PROGRAM
FISCAL &
FINANCIAL
POLICY COUNCIL
GOVERNMENT
PARLIAMENT
NAT. COMMISSION
OF LOCAL
ADMINISTRATION
NO PASS
PASS
BUDGET
17
Budgetary scenarios
• 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
18
Budgetary scenarios
• 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
19
Budgetary process. Participant bodies
STABILITY PROGRAM
COUNCIL OF
MINISTERS
Establishment of the budgetary
framework
STABILITY OBJECTIVE AND EXPENDITURE’S LIMIT
COMMISSION OF
EXPENDITURE POLICIES
Criteria and priorities
COMMISSIONS OF
PROGRAMS ANALYSIS
BUDGETARY NEGOTIATION
Ministry of Finance
Managing bodies
(DGP)
(OP)
Endowment of resources
COUNCIL OF
MINISTERS
BUDGET
20
Budget development

Art. 36 LGP (General Budgetary Law)
1.
2.
Fixment of the maximum non financial expenditure
Procedure established by Ministerial decree by the MoF





3.
4.
5.
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
Resources budget developed by the MoF
Informatic proceedings and deadlines set by the MoF
Draft presented to the Government by the MoF
21
Budget 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

22
COMMISSION OF EXPENDITURE POLICIES
PARTICIPANTS
- Minister of Economy and Finance (President)
- Ministers
- Finance and Budget Secretary of State
(Secretary)
PURPOSE
- Specify expenditure priorities to fufill the
Government's budgetary objectives.
Analyse
budgetary
policies,
public
expenditure actions, aimed objectives and the
available resources & establish allocation
creteria.
23
COMMISSIONS
OF PROGRAMS
ANALYSIS
PROGRAMS
ANALYSIS
COMMISSIONS
PARTICIPANTS
PARTICIPANTS
-- Finance
Budget
Secretary
of State
Financeand
and
Budget
Secretary
of State
(President)
(President)
Budgetand
and
Expenditure
General
-- Budget
Expenditure
General
Secretary (Coordinator)
Secretary (Coordinator)
- Ministries´ representatives
- Ministries' representatives
- Representatives of the General Budget
-Office
Representatives
of the General Budget Office
(DGP)
(DGP)
PURPOSE
- Analysis of the expenditure programs,
their objectives and the fulfillment of those
objectives
- Cost forecast and financial endowments
needed
COMMISSIONS
As many as Ministries
24
THE BUDGET DOCUMENTS
25
GENERAL STATE BUDGETS
DOCUMENTATION THAT IS PRESENTED BEFORE THE
CONGESS & SENATE
RED SERIES
GREEN SERIES
G.S.B. Law
Auxiliary Information
YELLOW SERIES
GREY SERIES
Mandatory
Information
Optional & complementary
information
26
GENERAL STATE BUDGETS
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.
27
GENERAL STATE BUDGETS
DOCUMENTATION PRESENTED BEFORE CONGRESS & SENATE
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.
28
GENERAL STATE BUDGETS
DOCUMENTATION PRESENTED BEFORE CONGRESS & SENATE
YELLOW SERIES (mandatory information)
- Financial and Economic Report.
- Memory of Fiscal Benefits
- Memories
- Consolidated General State Budgets.
- Annex of Financial Flows Spain - European Union.
29
GENERAL STATE BUDGETS
DOCUMENTATION PRESENTED BEFORE CONGRESS & SENATE
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.
30
Objectives 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
31
Objectives reports: An example
OBJETIVE / ACTIVITY: Increase and improvement of human resources
2006
INDICATORS






Budgeted
New aids for the instruction of research personnel (FPI)
(Number)
2007
Done
2008
Budgeted
Foreseen
execution
Budgeted
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
(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.
Requests granted on the total presented
32