GA/9389

ASSEMBLY TO CONSIDER SCALE OF ASSESSMENTS FOR 1998-2000, BUDGET FOR 1998-1999, AT CONCLUSION OF CURRENT SEGMENT TONIGHT

22 December 1997


Press Release
GA/9389


ASSEMBLY TO CONSIDER SCALE OF ASSESSMENTS FOR 1998-2000, BUDGET FOR 1998-1999, AT CONCLUSION OF CURRENT SEGMENT TONIGHT

19971222 Background Release The General Assembly this evening will consider a new scale of assessments for sharing out among all Member States, United Nations expenses for the years 1998-2000, and the Organization's 1998-1999 budget, which incorporates elements of the Secretary-General's reform proposals.

By the text of a draft resolution on the scale (document A/52/745), the Assembly would retain the ceiling rate at 25 per cent, but lower the floor rate to 0.001 per cent. That draft was approved, without a vote, by the Fifth Committee (Administrative and Budgetary) this afternoon. The Assembly would also decide to consider reviewing the scale for the years 1999-2000 at the resumed session, in light of such factors as the status of Member States' contributions to the regular budget.

By a draft resolution on the 1998-1999 budget (document A/52/744), the Assembly would appropriate some $2.532 billion, after adjustments mainly for currency fluctuations, down from the $2.583 billion proposed by the Secretary- General. (For a breakdown of the budget, see Annex I.)

According to another draft resolution on questions related to the budget, also approved this afternoon by the Fifth Committee without a vote, the Assembly would stress that the reform proposals would be implemented with full respect for relevant mandates, particularly the United Nations medium- term plan for 1998-2001, and reaffirm that the implementation of reform measures and reduction of posts must not entail involuntary separation of staff. On reform and other measures, the Assembly would, among others:

-- Decide to establish the post of Deputy Secretary-General and approve the recommendations of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on its salary and emoluments;

-- Decide that the amount of $362,000 saved by the abolition of the High-level Board on Sustainable Development shall be transferred to the development account. This will increase the amount in that account to a little more than $13 million;

-- Approve the comments and the recommendations contained in the reports of the Advisory Committee on the proposed budget. This includes the recommendation that the new Department of Disarmament Affairs and the Office of Communications and Public Information should be led by Under-Secretaries-General;

-- Approve the establishment of one post each at the level of Principal Officer (D-1), Professional P-5 and P-4, and General Service for the Strategic Planning Unit;

-- Decide that the stand-alone Decolonization Unit in the Department of Political Affairs would comprise a D-1, one P-5, one P-4 and two General Service staff;

-- Decide to retain three P-5 posts of the Directors of the three Regional Centres for Peace and Disarmament;

-- Endorse the Secretary-General's proposal to strengthen the capacity of the new Centre for International Crime Prevention, and approve two new posts to strengthen the Centre's capacity to address terrorism in all its forms and manifestations; and

-- Decide that no action shall be taken on the abolition of posts in United Nations information centres and on the question of integration of information centres with the United Nations Development Programme (UNDP).

Scale of Assessments

The scale of assessments consists of various elements which, together, are intended to reflect every State's real "capacity to pay". The new scale will be applied as of 1 January 1998, with the new 1998-1999 budget.

Eight scales were proposed at the beginning of the session, reflecting widely divergent views on a number of matters, including the ceiling and floor rates; whether to use gross national product (GNP) or national income; the average time period for calculating Member States' income; the extent of reduction, or "gradient", for countries with per capita income below the world's average; and the phase-out period for the "scheme of limits", which is a mechanism to slow down the rate by which a Member State's dues can vary between two successive scales.

Under the terms of section A of the four-part draft, the Assembly would decide that the scale for 1998-2000 would be based on GNP, a base period of six years, a debt burden adjustment in 1998 based on actual principal repayments and in 1999 and 2000 on debt stock. The Assembly would further

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decide that the scale elements would include a low per capita income adjustment with a per capita income limit of the average world per capita income for the base period and a gradient of 80 per cent. Individual rates of assessment of the least developed countries would not exceed the current level of 0.01 per cent.

The draft also contains the rates of assessments for the Holy See, Nauru, Switzerland and Tonga, which are not Members States of the United Nations but take part in some of its activities.

Section B of the text pertains to the application of Article 19 of the United Nations Charter, by which States whose arrears equals or exceeds the amount of contributions due for the preceding two years shall have no right to vote. The Committee on Contributions would be requested to review the procedures used to consider requests for exemptions to the application of that Article.

By section C, the Assembly would take note of the Committee on Contribution's intention to review all elements of the scale's methodology and request it to take the views expressed by Member States into account. (For some Member States' assessment rates, see Annex II.)

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ANNEX I

1998-1999 Budget Proposals and Changes To Implement Reforms

PART I: OVERALL POLICY-MAKING, DIRECTION AND COORDINATION

1. Overall policy-making, direction and coordination Secretary-General's initial proposal: $38,622,800

Reform proposals: 1A. Overall policy-making Secretary-General $41,704,300 General Assembly $41,454,500

1B. General Assembly Affairs and Conference Services Secretary-General $458,119,600 General Assembly $436,829,200

PART II: POLITICAL AFFAIRS

2. Political Affairs Secretary-General's initial proposal: $60,965,400

Reform proposals: 2A. Political Affairs Secretary-General $41,882,100 General Assembly $42,061,500

2B. Disarmament Secretary-General $12,254,200 General Assembly $13,310,600

3. Peace-keeping operations and special missions Secretary-General's initial proposal: $99,478,900

Reform proposal: Secretary-General No change in figures General Assembly $146,760,600

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4. Peaceful uses of outer space Secretary-General's initial proposal: $4,428,900

Reform proposal: Secretary-General No change in figures General Assembly $3,967,300

PART III: INTERNATIONAL JUSTICE AND LAW

5. International Court of Justice Secretary-General's initial proposal: $22,077,000

Reform proposal: Secretary-General No change in figures General Assembly $20,479,300

6. Legal Affairs Secretary-General's initial proposal: $33,478,800

Reform proposal: Secretary-General $33,528,300 General Assembly $33,035,400

PART IV: INTERNATIONAL COOPERATION FOR DEVELOPMENT

7A. Reform proposal: Three initial budget sections -- 7, 9 and 10 -- merged into new one, Economic and social affairs Secretary-General $110,427,700 General Assembly $109,262,300

8. Africa: New Agenda for Development Secretary-General's initial proposal: $5,443,000

Reform proposal: Secretary-General No change in figures General Assembly $5,385,200

11A. Trade and development Secretary-General's initial proposal: $105,657,900

Reform proposal: Secretary-General No change in figures General Assembly $96,296,900

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11B. International Trade Centre UNCTAD/World Trade Organization Secretary-General's initial proposal: $21,973,400

Reform proposal: Secretary-General No change in figures General Assembly $19,812,700

12. Environment Secretary-General's initial proposal: $9,304,400

Reform proposal: Secretary-General No change in figures General Assembly $8,807,400

13. Human settlements Secretary-General's initial proposal: $13,206,600

Reform proposal: Secretary-General No change in figures General Assembly $12,790,300

14. Crime control Secretary-General's initial proposal: $5,507,000

Reform proposal: Secretary-General $6,029,200 General Assembly $5,413,600

15. International drug control Secretary-General's initial proposal: $16,372,000

Reform proposal: Secretary-General No change in figures General Assembly $14,825,500

PART V: REGIONAL COOPERATION FOR DEVELOPMENT

16. Economic and social development in Africa Secretary-General's initial proposal: $90,771,600

Reform proposal: Secretary-General No change in figures General Assembly $87,926,400

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17. Economic and social development in Asia and the Pacific Secretary-General's initial proposal: $73,408,100

Reform proposal: Secretary-General No change in figures General Assembly $56,167,500

18. Economic development in Europe Secretary-General's initial proposal: $49,310,800

Reform proposal: Secretary-General No change in figures General Assembly $44,875,400

19. Economic and social development in Latin America and the Caribbean Secretary-General's initial proposal: $90,245,500

Reform proposal: Secretary-General No change in figures General Assembly $87,906,900

20. Economic and social development in Western Asia Secretary-General's initial proposal: $49,704,800

Reform proposal: Secretary-General No change in figures General Assembly $49,925,000

21. Regular programme of technical cooperation Secretary-General's initial proposal: $45,921,800

Reform proposal: Secretary-General No change in figures General Assembly $43,567,700

PART VI: HUMAN RIGHTS AND HUMANITARIAN AFFAIRS

22. Human rights Secretary-General's initial proposal: $46,448,500

Reform proposal: Secretary-General $46,138,700 General Assembly $42,201,500

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23. Protection of, and assistance to, refugees Secretary-General's initial proposal: $50,568,700

Reform proposal: Secretary-General No change in figures General Assembly $46,005,900

24. Palestine refugees Secretary-General's initial proposal: $19,375,000

Reform proposal: Secretary-General No change in figures General Assembly $17,933,700

25. Humanitarian assistance Secretary-General's initial proposal: $22,254,200

Reform proposal: Secretary-General $18,401,100 General Assembly $17,933,700

PART VII: PUBLIC INFORMATION

26. Public Information Secretary-General's initial proposal: $140,327,600

Reform proposal: 26. Communications and public information Secretary-General $139,009,000 General Assembly $138,040,400

PART VIII: COMMON SUPPORT SERVICES

27. Administrative Services Reform proposal: Department of Administration and Management to be recast as Department of Management

Secretary-General's proposal: $442,613,400* General Assembly $446,190,700

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PART IX: INTERNAL OVERSIGHT SERVICES

28. Internal Oversight Secretary-General's initial proposal: $18,637,300

Reform proposal: Secretary-General No change in figures General Assembly $18,359,600

PART X: JOINTLY FINANCED ACTIVITIES AND SPECIAL EXPENSES

29. Jointly financed administrative activities Secretary-General's initial proposal: $6,228,800

Reform proposal: Secretary-General No change in figures General Assembly $5,627,400

30. Special expenses Secretary-General's initial proposal: $53,720,800

Reform proposal: Secretary-General No change in figures General Assembly $52,837,000

PART XI: CAPITAL EXPENDITURES

31. Construction, alteration, improvement and major maintenance Secretary-General's initial proposal: $35,893,400

Reform proposal: Secretary-General No change in figures General Assembly $34,550,300

PART XII: STAFF ASSESSMENT

32. Staff Assessment Secretary-General's initial proposal: $324,600,100

Reform proposal: Secretary-General $321,804,300 General Assembly $315,436,700

Reform proposal: New section

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34. Development account Secretary-General $12,702,700 General Assembly $13,065,000

TOTAL ESTIMATES OF EXPENDITURE Secretary-General's initial/revised proposals: $2,582,999,800 General Assembly $2,532,331,200

ESTIMATES OF INCOME

1. Income from staff assessment Secretary-General's initial proposal: $329,104,900 General Assembly $325,486,700

2. General income Secretary-General's initial proposal: $35,135,800 General Assembly $33,743,600

3. Services to the public Secretary-General's initial proposal: $5,271,400 General Assembly $4,610,000

_---------_ Note:The figure marked with an asterisk (*) and those approved by the Assembly reflect adjustments based on the latest currency and inflation rate data.

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ANNEX II

According to the draft resolution on the scale of assessments, the top 10 contributors -- based on 1998 figures -- would be the following:

1998 1999 2000

(percentages) _---------------------------_

United States 25.000 25.000 25.000 Japan 17.981 19.98420.573 Germany 9.630 9.808 9.857 France 6.494 6.540 6.545 Italy 5.394 5.432 5.437 United Kingdom 5.076 5.090 5.092 Russian Federation 2.873 1.487 1.077 Canada 2.825 2.754 2.732 Spain 2.571 2.589 2.591 Netherlands 1.619 1.631 1.632

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For information media. Not an official record.