Renovating financial mechanisms to facilitate science and technology development

To reduce constraints on administrative procedures, and payment documents to help scientists focus on scientific research, the Law on Science and Technology 2013 has mentioned the application of allocated expenditures for scientific technology tasks using the state budget; Joint Circular No.27/2015/TTLT-BKHCN-BTC guiding the allocation of expenditures for scientific and technological tasks using all or a part of the state budget.
Illustrative image (Photo: VNA)
Illustrative image (Photo: VNA)

Accordingly, scientific and technological tasks can be contracted to spend the entire cost to accomplish the tasks.

The actual deployments show that the mechanism of contracting payments to the final product is not common and is mainly implemented for basic research tasks, funded through the National Foundation for Science and Technology Development (Nafosted); the main tasks are performed by the method of partial payment.

Scientists believe that the practice of research activities in the world should only examine the research results, not check the details of what to buy in input and how to do it. This is consistent with the characteristics of scientific research, which is the process of discovering new things, not being able to predict results and is difficult to implement according to estimates.

Although Joint Circular No. 27 has simplified the expenditure control procedures of the State Treasury, the responsibility for controlling expenditure is assigned to the funding management units under the ministries, branches and organisations in charge and the expenditures are still controlled according to the approved estimates.

Scientists believe that the practice of research activities in the world should only examine the research results, not check the details of what to buy in input and how to do it. This is consistent with the characteristics of scientific research, which is the process of discovering new things, not being able to predict results and is difficult to implement according to estimates.

When there are changes in price, or demands to change to appropriate research contents, scientists have to go through the procedure of applying for adjustments to the estimate, which is complicated and takes a long time, through many levels of authority. Therefore, scientists still have to complete the actual payment documents for the payment catalogues, and have to carry out the procedures related to procurement; store the payment documents, bidding and procurement for inspection and examination, which is almost unchanged compared to the partial payment method. Many scientists complain that the payment documents of some topics are longer than the final report on the topic.

The Strategy for Science, Technology and Innovation Development until 2030 has mentioned the complement of the appropriate legal system on science, technology and innovation, for the market mechanism and international best practices.

To make science and technology the main driving force for growth, it is necessary to innovate financial management thinking; Research activities need to be applied to specific mechanisms in allocating, assigning estimates, biddings, settlements, payment documents, controlling expenses, etc. Otherwise, it is very difficult to have an actual simple financial mechanism and untying scientists in the payment and settlement of state budgets.

The Ministry of Science and Technology is coordinating with the Ministry of Finance to study and amend the No. 27 Joint Circular above, at the same time propose viewpoints to solve this shortcoming in the proposal to amend the Law on Science and Technology.

Recently, the Prime Minister also issued Document No. 690/TTg-KVVX, requesting relevant ministries and agencies to review, advise and propose to amend and supply breakthrough mechanisms and policies, comprehensive and effective solutions, to promote scientific and technological development and encourage innovation; which refers to the promulgation of specific mechanisms that are accepting risks, failures in scientific research, technology development and application; focus on removing administrative barriers in the management of scientific and technological activities.

The Ministry of Science and Technology is coordinating with the Ministry of Finance to study and amend the No. 27 Joint Circular above, at the same time propose viewpoints to solve this shortcoming in the proposal to amend the Law on Science and Technology.

Many scientists believe that to ensure the effective use of financial resources for science and technology and promote the creative capacity of scientists, it is necessary to decentralise topic governing bodies, to establish a science council and budget appraisal board.

To implement a contracting paying mechanism, it is necessary not only to control the final product but also to supervise the research process through the workshop mechanism, with the participation of the ordering agency, the agency using the research results, the scientific community, etc.