ACABQ ASKS FIFTH COMMITTEE TO CONSIDER $141 MILLION NET INCREASE IN PROPOSED 1996-1997 BUDGET
Press Release
GA/AB/3054
ACABQ ASKS FIFTH COMMITTEE TO CONSIDER $141 MILLION NET INCREASE IN PROPOSED 1996-1997 BUDGET
19951207 The Advisory Committee on Administrative and Budgetary Questions (ACABQ) this morning advised the Fifth Committee (Administrative and Budgetary) to consider a $140.7 million net increase in spending while deliberating on the adjusted 1996-1997 proposed budget. The ACABQ is responsible for the expert examination of United Nations budgets.As the Fifth Committee considered the report of the Secretary-General on the revised budget estimates, ACABQ Chairman C.S.M. Mselle said the Advisory Committee had not found a technical basis to object to the Secretary-General's revisions. They reflected the effects of changes in inflation and exchange rates and of implementing the recommendations of the International Civil Service Commission (ICSC) on the staffing table. The impact of the readjustment on the proposed budget was a net increase of $140.7 million in spending and a net increase of $17.8 million in expected incomes. Of the rise in spending, $91 million was due to exchange rates fluctuations -- partly offset by lower needs of $1.1 million for inflation -- and $50.8 million due to the ICSC recommendations.
He said that the Secretary-General had been asked to try to absorb the spending relating to the exchange rate fluctuations and inflation through savings from the budget, without harming programme delivery and without prejudice to the use of the contingency fund. The Secretary-General had endeavoured to do so without affecting programme delivery. In his earlier 1996-1997 budget submission, the Secretary-General had proposed to cut $98.1 million, including efficiency savings of $35.5 million, from the revised 1994-1995 appropriations.
The Secretary-General's report on the revised estimates (document A/C.5/50/38) seeks to readjust the budget proposals, before the adoption of an initial appropriation, to reflect new costing assumptions. After preparing the proposed programme budget, the report adds, the budget is "recosted" or adjusted three times in the biennial cycle. The first is contained in the revised estimates now before the Committee. The second would be contained in the revised estimates in the first performance report in connection with approval of a revised appropriation and the third would be included in the second performance report in connection with approval of the final appropriation. Annexed to the report are the revised estimates for the budget's various sections.
The Committee would meet again at a time to be announced.
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