amending budget no 4 to the general budget 2024 - update of revenue (own resources) and adjustments to some decentralised agencies
This legislative report concerns Draft Amending Budget No 4/2024, which updates the European Union's expected income and adjusts spending for some agencies. It aims to reflect the latest financial information and ensure agencies have adequate resources. The budget update affects the EU's revenue forecasts, including customs duties, VAT, plastic packaging waste contributions, and the UK's financial contribution. It also impacts the budgets of specific decentralised agencies like the European Medicines Agency and Eurojust. Key changes include revised revenue forecasts, a lower than expected UK contribution, and increased income from fines and penalties. The report also addresses adjustments to agency funding, with a net increase proposed, partly financed by the Flexibility Instrument. The report welcomes the draft amending budget but calls for improved revenue forecasting accuracy. It highlights concerns about the increasing burden of certain rebates on Member States and the need for sustainable EU budget revenue, urging progress on own resources reform.
Analysis
The primary purpose of Draft amending budget No 4/2024 is to update the revenue side of the budget to reflect recent developments and to adjust the expenditure side concerning several decentralised agencies.
What changes
- Updates to own resources forecasts, including customs duties, uncapped VAT base, non-recycled plastic packaging waste, and the total EU GNI base.
- Update of the 2024 United Kingdom contribution and adjustment for fines and penalties cashed.
- Adjustments to the financing of decentralised agencies, with a net increase of EUR 12 million and a proposal to mobilize the Flexibility Instrument for EUR 13.2 million.
- An increase of EUR 2 million for Eurojust due to inflationary pressure.
Expected impact
- The decrease in customs duties and the United Kingdom contribution necessitates an increase in GNI contributions from Member States.
- Inflationary pressure is causing staff and operating costs for decentralised agencies to be under substantial pressure, as inflation is running above the annual 2% deflator used for MFF ceilings.
- The increase in inflation-linked GNI lump-sum reductions for beneficiary Member States increases the burden on other Member States.
Limitations
- The specific details of the adjustments to the expenditure side of the budget for each decentralised agency are not fully elaborated in the provided text.
- The exact implications of the proposed reforms to the own resources system on future budgetary planning are not detailed.
- The specific legislative acts that assigned new tasks to the decentralised agencies are not listed.
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