Amending budget 2/2006: budgeting the surplus from the implementation of the budget year 2005

PURPOSE : to present the preliminary draft amending budget No 2 to the general budget for 2006.

CONTENT :  the Preliminary Draft Amending Budget 2/2006 aims at budgeting the surplus resulting from the implementation of the budget year 2005. As provided for in the Financial Regulation, it is the only subject of this PDAB and it has to be submitted within 15 days following the submission of the provisional accounts, which took place on 31 March 2006.

The Commission’s proposal can be summarised as follows:

Revenue :

- entry in the budget of the surplus of the implementation of the budget year 2005, which amounts to EUR 2 410 079 591,35 including an  over-registering in revenue of EUR 1 292 374 750,19 divided as follows by title:

1. Own resources: - EUR 10 834 757,10

3. Surpluses available: - EUR 13 531 728,64

4. Miscellaneous Community taxes levies and dues: - EUR 12 809 953,05

5. Revenue accruing from the administrative operation of the institutions: + EUR 123 098 462,50

6. Contributions and repayments, EEA: + EUR 1 167 571 621,12

7. Interest on late payment and fines: + EUR 38 379 646,77

8. Borrowing and lending operations: + EUR 16 396 732,60

9. Miscellaneous revenue: - EUR 15 895 274,01

Expenditure :

a) an under-spending of EUR 1 076 780 696,79 divided as follows by Heading of the Financial Perspective:

• Agriculture: EUR 156 574 401,67

• Structural operations: EUR 58 463 440,29

• Internal policies: - EUR 54 653 266,07

• External action: EUR 181 080 519,83

• Administration: EUR 66 405 283,89

• Reserves: EUR 205 890 000,00

• Pre-accession aid: EUR 463 020 317,18

b) a negative balance of monetary exchange of -EUR 40 924 144,37.

The budgeting of the surplus will diminish accordingly the global contribution of the Member States to the financing of the EU Budget. This global decrease by Member State will also be influenced by the updated own resources forecast including the updated amount of the UK correction and the budgeting of the surplus of the guarantee fund for external loans. These forecasts will be the subject of a separate Preliminary Draft Amending Budget, to be presented by the Commission at the beginning of June 2006,

which is expected to change further the amounts of the contributions by country.