During the 13th Five-Year Plan period, finance at all levels will fully implement the strategy of innovation-driven development, vigorously support scientific and technological innovation, and give support to science and technology as a key area of government expenditure. Data show that from 2016 to 2020, China spent 4.12 trillion yuan on science and technology (of which 1.53 trillion yuan was spent by the central government), an average annual growth rate of 10.37%. At the same time, we will deepen management reform, increase the supply of fiscal and taxation policies, and continue to make progress in making China an innovative country.

First, we will focus on supporting public scientific and technological activities. We will continue to increase support for public scientific and technological activities, including basic, strategic and frontier research, and research on key generic technologies. In particular, we will continue to increase support for basic research to provide a source of driving force for independent innovation. We will focus on China's strategic needs and vigorously support efforts to tackle key and core technologies. We will act on our own initiative, actively communicate and coordinate, and accelerate the organization and implementation of the "Science and Technology Innovation 2030 -- Major Projects". In 2020, in the face of the sudden outbreak of COVID - 19, according to the deployment of the central decision making, go all out to support science and technology started COVID - 19 pandemic control emergency projects, researches on clinical treatment and drug, vaccine development, testing technology and products, viral etiology and epidemiology and animal model to build five big, mobilize the whole society strengths in epidemic prevention and control researches.

Second, we will vigorously support the development of strategic scientific and technological forces and high-level innovation bases. We will provide preferential support to research institutes at the central level, increase basic expenditures, improve operational support, and support independent research on selected topics and the development of research conditions, thus further enhancing their research capabilities. In accordance with the principle of "reform first, outstanding characteristics, performance-oriented", we support the "personalized" reform and development of the Chinese Academy of Agricultural Sciences, Chinese Academy of Agricultural Sciences and other large institutes. We supported the establishment of national laboratories and the restructuring of the state key laboratory system. We will support the construction of a national science and technology resource sharing service platform and a national field observation station, and steadily support their role in scientific observation and data sharing, so as to build a high-level innovation base.

Third, we will support the training of scientific and technological personnel. Support the cultivation of domestic scientific and technological talents, and support scientific and technological talents to carry out independent topic selection and team building by arranging scientific and technological subsidies. To fund outstanding postdoctoral researchers with innovative ability and development potential to complete innovative research in their research work. Through the arrangement of funds for the special program for scientific and technological personnel of the "Three Regions" Talent Program, we will support outstanding scientific researchers to provide scientific and technological services in remote and poor areas, border ethnic minority areas and old revolutionary base areas, so as to provide strong support for scientific and technological personnel in winning the battle of targeted poverty alleviation.

Fourth, we will support enterprises in technological innovation. We will support the Ministry of Science and Technology in supporting qualified enterprises to undertake national scientific research tasks and enhance their capacity for independent innovation through the central funded science and technology program.

We will implement the National guidance Fund for the transformation of scientific and technological achievements, and, through a comprehensive approach, set up sub-funds for venture capital investment to attract nongovernmental capital and financial capital into the innovation sector, and support enterprises in the transfer and transformation of their scientific and technological achievements. Innovation support mode adopts the funding mode of "implement first, allocate later". Innovation subjects such as enterprises should invest first and carry out various scientific and technological activities, and then give subsidies after acceptance, so as to guide enterprises to become the subject of technological innovation decision-making, r&d investment, scientific research organization and achievement transformation.

Fifth, we will deepen reform of government funding for science and technology plans and research projects. Reconstruction plan of science and technology system, jointly with the Ministry of Science and Technology system will be dispersed in 40 fit-out implement open competition way by the department of science and technology plan optimization integrated into five major categories, changed the original from the top-level design of science and technology plan regional segmentation, bull management, spending policies "fragmentation" ills, built to "concentrate resources to accomplish large undertakings, the money spent on the blade". Jointly with the Ministry of Science and Technology and so on a series of policy document, from "put, pipe, and fall" four aspects, and promote the establishment of sound obeys the law of financial management in accordance with the requirements, adapt to the scientific research activities of scientific research project funds management mechanism, especially in simplifying budgeting, adjust permissions, ease the research budget expenses reimbursement, intensify scientific research personnel incentives and so on proposed targeted "loosen + incentive policies and measures. In 2019, the National Natural Science Foundation of China (NSFC) and the Ministry of Science and Technology launched the pilot reform of "all-in-one system" for funding scientific research projects, to further deepen the reform of "decentralization and service" in science and technology.

In addition, the central government actively promote science and technology of the central and local fiscal powers and spending responsibilities division reform, and in the name of the state to study and draft issued by the central and local fiscal powers and the areas of science and technology "division reform expenditure responsibility, to clarify the boundaries between the government and market, clear the responsibilities of the central and local, urged governments at all levels to perform well the importance of science and technology input and management responsibility system arrangement.

Under the encouragement and guidance of fiscal and tax policies, China's scientific and technological undertakings have made great progress in recent years, with its scientific and technological strength greatly enhanced, overall innovation ability significantly enhanced, and its position in the global innovation landscape further enhanced. The total number of research and development personnel, the number of international papers, and the number of invention patents granted rank among the top in the world. Some research fields have reached or approached the international advanced level, playing an important supporting and leading role in China's sustained and healthy economic development and the improvement of people's livelihood. According to the Global Innovation Index released by the World Intellectual Property Organization (WIPO) and other organizations, China's overall ranking in innovation capacity has risen from 35th in 2013 to 14th in 2020. China is a leading global innovation group and the only middle-income economy that ranks among the top 30 in the overall ranking.

Source: Ministry of Finance, PRC