SECRETARY-GENERAL'S BUDGET PROPOSAL FOR UNITED NATIONS IN 1998-1999 SHOWS NEGATIVE GROWTH, STAFF CUTS
Press Release
SG/2034
ORG/1236
SECRETARY-GENERAL'S BUDGET PROPOSAL FOR UNITED NATIONS IN 1998-1999 SHOWS NEGATIVE GROWTH, STAFF CUTS
19970527 NEW YORK, 27 May -- Secretary-General Kofi Annan today released his budget proposals for 1998-1999 showing negative real growth for the first time in memory and abolishing over 900 staff posts.Under-Secretary General for Administration and Management Joseph Connor told journalists in introducing the budget that this was the beginning of the process. After the Secretary-General presents a major reform package in July, further reductions could be expected, including additional reductions in staff that would bring the total to about 1,000.
The proposed two-year budget presented today, while designed to ensure full delivery of the programmes mandated by Member States, represents a $124 million reduction in appropriations from the previous two-year budget, at the same prices. The 1996-1997 budget was $2,603.3 million, while the 1998-1999 proposal is for $2,479.3 million. When inflation is taken into account, the proposed budget for 1998-1999 is $2,583.0 million, which still represents a reduction of $20.3 million over the previous two years. A current positive trend in currency fluctuations adds another $50 million to the savings, bringing the bottom line number for 1998-1999 to $2,533.0 million.
Mr. Connor also reported spending for the next two-year period to shift in favour of economic and social areas (up $55.6 million) and away from other areas (down $75.9 million).
On staff reductions, Mr. Connor said the new budget would have 1,182 fewer posts than the previous one (8,839, down from 10,021). Of these, 904 were abolished of the 1,000 promised by the Secretary-General. The balance would come after the Secretary-General announces his reform package in July, which will include collapsing three units that deal with economic and social matters into one, and redesigning the public information department.
"We think we look pretty good in comparison to any government", Mr. Connor said. "To suppress one tenth of the work force and achieve negative nominal growth are significant achievements", he added.
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