amending budget no 2 to the general budget 2024 entering the surplus of the financial year 2023
This legislative act incorporates the European Union's surplus from the 2023 financial year into the 2024 budget. The surplus amounts to EUR 633 million and is a result of both higher-than-expected revenue and lower-than-expected spending. The surplus affects all Member States by reducing their overall contribution to the 2024 EU budget financing. Specifically, the annual GNI lump-sum reductions for Germany, The Netherlands, Denmark, Sweden, and Austria are calculated based on this surplus. This measure reduces the need for Member State contributions to the 2024 budget. The Parliament notes that the surplus is lower than in 2022, indicating improved budget forecasting. It also reiterates its position that fines and fees should supplement the budget without reducing Member State contributions. The resolution approves the Council's position on this draft amending budget. The Parliament emphasizes the need for sustainable revenue sources and regrets the lack of progress on reforming the EU's own resources system.
Analysis
Draft amending budget 2/2024 aims to incorporate the 2023 surplus of EUR 633 million into the 2024 budget.
What changes
- Introduces Draft amending budget No 2/2024 to budget the 2023 surplus of EUR 633 million.
- Approves the Council's position on Draft amending budget No 2/2024.
Expected impact
- The surplus reduces Member States' contributions to the 2024 budget financing, while budgetary needs remain high and flexibility is limited.
- Inflation-linked GNI lump-sum reductions for five Member States have increased faster than MFF ceilings, increasing the burden on other Member States.
- The report urges the Council to swiftly adopt amended Commission proposals for the reform of the own resources system to increase Union budget revenue.
Limitations
- The document does not contain specific details on the implementation of the EUR 70 million under-implementation in payments by the Commission.
- The document does not provide a breakdown of the EUR 48 million in cancelled payments by other institutions.
- The document does not specify the exact nature of the 'new emerging priorities' mentioned in relation to budgetary flexibility.
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