CM(2009)171 12 November 20091
1071 Meeting, 24-26 November 2009
11 Administration and Logistics
11.1 Draft 2010 Ordinary Budget – cuts to the budget of expenditure
Memorandum from the Secretary General
1. At the GR-PBA meeting on 5 November 2009, a number of delegations expressed themselves in favour of further reductions on consultants and official journeys appropriations, and, to a lesser extent, on the level of the grant to the investment budget for 2010. Several delegations stated that they would prefer a strategic rather than a mere budgetary approach to these issues, in particular as regards the use of consultants and the investment grant.
2. Against this background, whilst recalling that a reduction in the budget of expenditure could have an effect on the Organisation’s objectives for 2010 as set out in the Priorities document (CM(2009)67) welcomed by the Ministers’ Deputies on 8-9 July 2009, the Secretary General proposes to make cuts to the 2010 draft budget of expenditure of the Ordinary budget (Section I) and outlines alternatives for the possible use of the resources resulting from these measures (Section III) and from a possible one-off increase in receipts of the Ordinary budget if certain functions of the Secretariat of the Partial Agreement of the Council of Europe Development Bank were not transferred to the Bank itself in 2010.
Proposals for budgetary cuts
3. Having regard to discussions on 5 November 2009, the Secretary General proposes the following cuts in the draft budget of expenditure year 2010:
a) Reducing consultant appropriations by an additional 5% €72 000
(appropriations were cut by 20% in 2009 and already by 5% for 2010, cf. CM(2009)167)
b) Reducing official journey appropriations by an additional 5% €183 000
(appropriations were cut by 5% in 2009 and already by 5% for 2010, cf. CM(2009)167)
As regards cuts mentioned under a) and b) above, it should be noted that, as far as Vote II (Programme of Activities) is concerned, the annual split of expenditure depends on the nature of the activities to be implemented and that expenditure on official journeys varies from year to year depending on the activities to be implemented.
c) Making an additional reduction in the grant to the investment budget €175 000
(the annual grant has already been reduced by € 150 000 for 2010 in real terms)
It should be noted that whilst the Budget Committee suggested considering an “exceptional” one-off cut of €250 000, the proposed cut above, if not reversed in future years, would lead to a total reduction of €875 000 in the course of the next five years, to be added to the existing amount of €7 546 000 of unfunded investment needs. In the light of the budgetary situation for 2011, the Secretary General will therefore attempt to compensate this cut in subsequent years.
For 2010, the Secretary General will postpone project DC – 001 (Multicamera captation in Room 1- Press Conference Room).
Increase in receipts (one-off)
4. If certain functions of the Secretariat of the Partial Agreement of the Bank were €108 000
not transferred to the Bank itself in 2010, there would be a one-off increase in administrative receipts.
TOTAL (additional savings and increase in receipts) €538 000
Possible use of savings and additional receipts
5. Given the one-off nature of the possible increase in receipts, the Secretary General proposes that it should be used to reduce the negative reserve.
6. Having this in mind, the Secretary General proposes the following 2/3 – 1/3 split of the above mentioned €538 000:
Reduction in member states contributions to the Ordinary budget € 360 000
Reduction in the negative reserve € 178 000
7. This would result in a reduction of the budget of expenditure of the Ordinary budget by 0.25% from its forecast increase of 0.51% in nominal terms.
Note 1 This document has been classified “restricted” until the date of its adoption by the Committee of Ministers.