Ministry pledges funding for science and technology development

Ministry pledges funding for science and technology development

The Ministry of Finance (MoF) plans to allocate more state budget resources for science and technology development, digital transformation, and innovation.

At the government meeting on science and technology development, innovation, and digital transformation on March 18, Minister of Finance Nguyen Van Thang delivered a speech on the allocation of state budget and investment cooperation.

Minister Nguyen Van Thang

Minister Thang said that the budget has so far allocated 2 per cent, equivalent to VND51 trillion ($2.04 billion) for sci-tech development. Another 1 per cent of regular expenditure for sci-tech development is being moved from other resources.

"If needing to supplement expenditure for sci-tech, innovation and digital transformation, relevant authorities should submit to the Ministry of Science and Technology and the MoF to immediately add to the budget plan," he said.

For the budget from 2026 onwards, the MoF will synthesise and calculate to allocate resources following the direction of the Central Steering Committee and the prime minister.

According to the Law on State Budget, the state ensures expenditure for sci-tech equalling 2 per cent at least of the total annual state budget expenditure and gradually going up as the fact requirements. The allocation of the state budget for sci-tech in the following year is based on practical needs and the results of previously using the allocated budget.

Thang shared the reason for the unachieved budget expenditure for sci-tech. Ministries, agencies, and localities have not paid attention to sci-tech development, and not many projects can ensure the correct principles and criteria for capital allocation. Many localities do not allocate capital or allocate very little for sci-tech development. The ability to absorb investment capital of the sci-tech sector is not commensurate. The number of cancelled estimates, the number returned to the state budget every year is considerable.

In the 2021–2025 period, the state budget allocation for sci-tech development, innovation and national digital transformation was integrated from various sources. The total expenditure for this field is still modest. Specifically, it reached 1.37 per cent in 2021, 1.72 per cent in 2022, 1.39 per cent in 2023, 1.97 per cent in 2024, and being expected to reach 2 per cent in 2025.

State budget expenditure for sci-tech is mentioned in many laws, such as the Law on Science and Technology, the Law on State Budget, and the Law on Public Investment. Furthermore, other regulations on spending on sci-tech also have some inconsistent content, leading to challenges in the process of allocating capital sources, payment, and settlement of projects.

To remove difficulties in institutions, and procedures for spending on R&D, sci-tech, digital transformation, and innovation, the MoF has worked with the Ministry of Science and Technology to advise the government to submit to the National Assembly for promulgation of Resolution No.193/2025/QH15 on pilot implementation of special policies to create breakthroughs in national digital transformation.

"Currently, the two ministries are working to soon issue a guiding decree, expected in March, to remove all obstacles from the budget arrangement, estimates, allocation, disbursement, and settlement," Minister Thang said. "When the guiding decree is issued, the woes in spending on sci-tech will be completely removed."

Additionally, the MoF is working with the Ministry of Science and Technology to submit a draft law amending many laws in the upcoming National Assembly session. In May, the MoF will also propose to amend the Law on State Budget, including regulations on spending on sci-tech.

VIR