Article 1 In order to strengthen the macro-management of science and technology funds in this Municipality and promote the development of science and technology and economic construction, these Measures are formulated in accordance with the spirit of the reform of the appropriation system in the Decision of the Central Committee on the Reform of Science and Technology System and the Interim Provisions of the State Council on the Management of Science and Technology Appropriations, and in combination with the actual situation of this Municipality. Article 2 Starting from the Seventh Five-Year Plan (hereinafter referred to as the Seventh Five-Year Plan), the growth of local science and technology funds (including the Shanghai Science and Technology Development Fund and the funds of local independent scientific research institutions in this Municipality) should be higher than the proportion of the growth of local financial recurrent revenue in this Municipality. It will be agreed by the Shanghai Municipal Planning Commission (hereinafter referred to as the Municipal Planning Commission), the Shanghai Municipal Finance Bureau (hereinafter referred to as the Municipal Finance Bureau) and the Shanghai Municipal Science and Technology Commission (hereinafter referred to as the Municipal Science and Technology Commission). Article 3 Shanghai Branch of the People's Bank of China and other relevant professional banks in this Municipality shall, under the condition of comprehensive balance of funds in this Municipality, draw a certain number of science and technology credit indicators from this Municipality's credit plan every year to provide science and technology loans to support this Municipality's science and technology development. Article 4 The Shanghai New Technology Development Fund shall be established by the Municipal Science and Technology Commission to support the research and development of new technologies with rapid changes and high risks and the commercialization of their achievements; The Shanghai Natural Science Foundation was established by the Municipal Science and Technology Commission to support the strengthening of basic research and applied research. Article 5 All the funds of scientific research institutions included in the local fiscal expenditure budget of this Municipality shall be converted into the scientific expenditure budget from 1987, based on the budget of 1986 (excluding the reduced funds due to the reform pilot), plus the increased amount. The above funds, together with the original budget for scientific undertakings, shall be allocated by the Municipal Finance Bureau to the Municipal Science and Technology Commission for unified management. The annual plan of scientific expenses shall be issued after being summarized by the superior competent department of each unit and submitted to the Municipal Science and Technology Commission for approval; The annual budget, final accounts and the use of funds shall be summarized by the competent department and submitted to the Municipal Finance Bureau after being audited by the Municipal Science and Technology Commission.

Scientific research institutions approved by the financial department and operating expenses of enterprises will be allocated to the Municipal Science and Technology Commission for unified management when conditions are ripe. Sixth scientific research institutions engaged in scientific and technological development and are expected to realize practical value in the near future, their scientific research funds should be reduced year by year during the Seventh Five-Year Plan period. The reduced funds will be allocated to the Shanghai Science and Technology Development Fund and continue to be used for science and technology development. Two-thirds of them are allocated by the Municipal Science and Technology Commission to the relevant competent departments, which will be included in the Science and Technology Development Fund of the competent departments for scientific research institutions to undertake major scientific research, technology development projects and other special tasks of the municipal and competent departments, including the special tasks of information, metrology, standards, observation and design departments set up in various scientific research institutions designated by the competent departments; The remaining one-third and the growth part of the funds are held by the Municipal Science and Technology Commission, which are used for science and technology entrusted credit funds, science and technology loan discount funds, experimental base construction funds and large-scale experimental equipment funds of various scientific research institutions. Article 7 The research funds of scientific research institutions engaged in basic research and unable to obtain practical value in the near future, which mainly focus on applied research, should gradually rely on applying for natural science funds, and the higher authorities only allocate a certain amount of business funds to ensure the necessary recurrent expenses and public facilities expenses. The reduced scientific research funds will be allocated to the Shanghai Natural Science Foundation Committee for unified use. Article 8 Scientific research institutions engaged in social public welfare undertakings such as medical and health care, labor protection, family planning, disaster prevention and environmental science, and institutions engaged in scientific and technological services and technical basic work such as information, standards, measurement and observation shall be approved and allocated annual career funds by the competent department at a higher level according to the approved annual planned tasks and financial possibilities, and the contract shall be implemented according to the tasks. If such units can obtain reasonable income beyond the planned tasks stipulated by the state and superiors, their net income shall not exceed 10% of the lump-sum business expenses of the unit in the current year, and all of them shall be left to the unit; For the excess, 50% will be used to offset the allocation of business expenses for the next year, and 50% will be reserved for the unit. Ninth agricultural scientific research institutions can implement the contract system in accordance with the provisions of Article 8 of these measures; Conditional agricultural scientific research institutions should also gradually realize self-sufficiency in business funds in accordance with the provisions of Article 6 of these Measures. Tenth scientific research institutions to achieve economic self-reliance, its retained net income can be extracted from the science and technology development fund, employee welfare fund, employee incentive fund and reserve fund according to the relevant provisions of this Municipality.

Scientific research institutions reduce business expenses year by year, and their retained net income can be extracted from science and technology development fund, employee welfare fund and employee incentive fund according to the relevant provisions of this Municipality.

Where the fund system and contract system are implemented, the retained net income can be extracted from the science and technology development fund, employee welfare fund and employee incentive fund according to the relevant provisions of this Municipality. The extraction ratio of employee incentive fund shall be approved by the competent department in conjunction with the financial department according to the completion of planned tasks, economic benefits and social benefits. Eleventh scientific research institutions designated by the relevant departments of information, measurement, standards, observation, design and other departments of the funds allocated by the designated departments according to the task, the relevant departments or enterprises and institutions entrusted by the entrusted departments or units to pay according to the needs of the task.