Budgetary Implementation of EU Agencies - The Use of EC Appropriations by Agencies and the Assigned Revenue Instrument

16-06-2008

Taking all theoretically available EC appropriations as a reference for the calculation of the Agencies' budgetary implementation rates leads to a weaker implementation (some 79% on average for 2006) than is usually pictured. Such an analysis also shows that in 2006 30% of finally unused funds have though been transferred to the Agencies. This excessive funding provides the Agencies with some margins to use this surplus during the 2 following years through the mechanism of assigned revenue. In this respect, the procedure followed for the first time in the 2009 Preliminary Draft Budget (PDB), which consists in anticipating assigned revenues available one year later for each Agency, is a step towards more rigorous budgetary management and better information for the Budgetary Authority, even if this new procedure also has drawbacks.

Taking all theoretically available EC appropriations as a reference for the calculation of the Agencies' budgetary implementation rates leads to a weaker implementation (some 79% on average for 2006) than is usually pictured. Such an analysis also shows that in 2006 30% of finally unused funds have though been transferred to the Agencies. This excessive funding provides the Agencies with some margins to use this surplus during the 2 following years through the mechanism of assigned revenue. In this respect, the procedure followed for the first time in the 2009 Preliminary Draft Budget (PDB), which consists in anticipating assigned revenues available one year later for each Agency, is a step towards more rigorous budgetary management and better information for the Budgetary Authority, even if this new procedure also has drawbacks.