Speakers Back Proposed Funds to Improve International Tax Cooperation, Support Least Developed Countries, as Fifth Committee Reviews Budget Implications of Seven Texts

The Fifth Committee (Administrative and Budgetary) today considered the 2024 budget implications of seven resolutions approved by three General Assembly Committees that — if adopted by all Member States — would deliver nearly $6 million to help the Organization foster greater cooperation on international tax treaties, curb racism and direct more international financing to developing countries.

Delegates threw their support behind the resolutions, which also aim to strengthen the international treaty framework, reinforce the capacity of the Subregional Centre for Human Rights and Democracy in Central Africa and expand financial resources to help small island developing States deal with the adverse effects of climate change.

Lemlem Fiseha Minale (Ethiopia), speaking for the African Group and aligning herself with the Group of 77 and China, called the Second Committee’s (Economic and Financial) resolution on international tax cooperation a beacon of hope for developing nations and a “hopeful culmination of the decades-long efforts to an UN-based international cooperation on taxation”.  The initiative is meant to tackle the illicit financial flows that cost the African continent up to $1.8 trillion between 1970 and 2008, she said.  Current annual losses are estimated at up to $250 billion and caused primarily by tax evasion, the mispricing of trade and services by multinational companies, weak tax administration and the lack of international cooperation to monitor and curb tax crimes.

Pursuant to the 2015 Special Declaration of the African Union on Illicit Financial Flows, diplomatic and media efforts were made to identify these flows and return the funds to Africa.  A High-level Panel on Illicit Financial Flows was created to address the challenge.  “However, these efforts had no significant outcome, mainly because of the lack of any meaningful cooperation framework on tax matters at the international level,” she said.  The Group, therefore, with the Member States from the Global South, initiated the adoption of the Assembly resolution establishing a Member State-led, open-ended ad-hoc intergovernmental committee for a United Nations framework convention on international tax cooperation.  “This offers a transformative shift for Africa and the Global South and unlocks effective cooperation against tax evasion, tax base erosion and profit shifting that are paramount to international rule of law and to addressing global inequality,” she said.

Speaking for the Group of 77 and China, Diosdado Hernandez Morera (Cuba), said the Group supports the convening of the fourth International Conference on Financing for Development in 2025.  It is needed to accelerate implementation of the 2030 Agenda for Sustainable Development, achieve the Sustainable Development Goals and reform the international financial architecture.  The Group supports the establishment of an intergovernmental preparatory committee.  Regarding the funding required for the follow-up to the fifth United Nations Conference on the Least Developed Countries, the Group supports the Secretary-General’s proposal to strengthen the capacity and functions of the Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States.  These three groups of countries, he said, face greater demands and challenges while dealing with key development issues.

Turning to the funds needed to support the Second Committee (Economic and Financial) resolution to boost international tax cooperation at the UN, he said the Group will follow talks to ensure the mandates have adequate resources, including for the establishment of a Member State-led, open-ended ad hoc intergovernmental committee to draft the terms of reference for a UN framework convention on international tax cooperation.

At the meeting’s end, Michel Tommo Monthe (Cameroon) urged the Committee to adopt by consensus the Third Committee’s (Social, Humanitarian and Cultural) resolution supporting the Sub-regional Centre for Human Rights and Democracy in Central Africa in Yaoundé.  He also encouraged the Committee to conclude its work before Christmas for the first time.

Maria Costa, Director of the Finance Division of the Office of Programme Planning, Finance and Budget, in the Department of Management Strategy, Policy and Compliance, introduced the Secretary-General’s statements regarding the programme budget implications, prepared in accordance with rule 153 of the General Assembly’s procedural rules, of the seven resolutions:  one from the Sixth Committee; two from the Third Committee; and four from the Second Committee.

Ms. Costa first presented the Secretary-General’s statement (document  A/C.5/78/21) on the programme budget implications of draft resolution A/C.6/78/L.4 “Strengthening and promoting the international treaty framework”, approved by the Sixth Committee on 17 November.  [Through this text, the Assembly would call on the Secretary-General to strengthen the Treaty Section’s capacity to perform its responsibilities and undertake a regular thematic debate in the Sixth Committee to foster a technical exchange of views on practices to strengthen the international treaty framework.]  In order to implement the resolution, the Secretary-General proposes resources of $106,900 under Section 8, Legal affairs.

She then turned to the Secretary-General’s statement (document A/C.5/78/22 on the programme budget implications of draft resolution A/C.3/78/L.60/Rev.1) “A global call for concrete action for the elimination of racism, racial discrimination, xenophobia and related intolerance and the comprehensive implementation of and follow-up to the Durban Declaration and Programme of Action”, approved by the Third Committee at its 16 November meeting.  [By the text, the Assembly would request the Secretary-General and Office of the UN High Commissioner for Human Rights to provide resources to fulfil the mandates of the Intergovernmental Working Group on the Effective Implementation of the Durban Declaration and Programme of Action, the Working Group of Experts on People of African Descent, the Group of Independent Eminent Experts on the Implementation of the Durban Declaration and Programme of Action, the Ad Hoc Committee on the Elaboration of Complementary Standards and the Permanent Forum on People of African Descent.]  The Secretary-General proposes resources of $233,800, including $30,800 under Section 2, General Assembly and Economic and Social Council affairs and conference management; and $203,000 under Section 24, Human rights.

Next, she introduced the Secretary-General’s statement (document A/C.5/78/24) on the programme budget implications of the draft resolution A/C.3/78/L.55) “Subregional Centre for Human Rights and Democracy in Central Africa”, approved by the Third Committee on 16 November. [By the text, the Assembly would request the Secretary-General and the High Commissioner for Human Rights to strengthen the capacity of the Centre in Yaoundé to achieve greater results on the ground in terms of strengthening national human rights systems and moving more rapidly towards the achievement of the Sustainable Development Goals in Central Africa.]  The Secretary-General proposes resources of $2.12 million under Section 24, Human rights. 

Turning to four resolutions regarding outputs from the Second Committee, she first introduced the Secretary-General’s statement (document  A/C.5/78/23) on the programme budget implications of draft resolution A/C.2/78/L.18/Rev.1 “Promotion of inclusive and effective international tax cooperation at the United Nations”, approved at the Second Committee’s 22 November meeting.  [By the text, the Assembly stressed that efforts in international tax cooperation should be universal in approach and scope and consider the different needs and capacities of all States, particularly developing countries and countries in special situations.]  The Secretary-General proposes resources of nearly $1.5 million, comprising $753,200 under Section 2, General Assembly and Economic and Social Council affairs and Conference Management and $742,300 under Section 9, Economic and social affairs.

She then introduced the Secretary-General’s statement (document  A/C.5/78/25) on the programme budget implications of draft resolution A/C.2/78/L.45) “Follow-up to and implementation of the SIDS Accelerated Modalities of Action (SAMOA) Pathway and the Mauritius Strategy for the Further Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States”, approved by the Second Committee on 20 November.  [By that text, the Assembly stressed the urgent and immediate need for new, additional, predictable and adequate financial resources to help developing countries respond to the economic and non-economic loss and damage associated with the adverse effects of climate change.] The Secretary-General proposes resources of $129,800, comprising $64,900 under Section 9, Economic and Social Affairs and $64,900 under Section 10, Least developed countries, landlocked developing countries and small island developing States.

Next, she introduced the Secretary-General’s statement (document A/C.5/78/26) on the programme budget implications of draft resolution A/C.2/78/L.57) “Follow-up to the Fifth United Nations Conference on the Least Developed Countries”, approved by the Second Committee on 21 November.  [By the text, the Assembly called upon development partners and all other relevant actors to implement the Doha Programme of Action by integrating it into their respective national cooperation policy frameworks, programmes and activities, to ensure enhanced, predictable and targeted support to the least developed countries.]  The Secretary-General proposes resources of $24,500 under Section 2, General Assembly and Economic and Social Council affairs and conference management. 

Finally, she introduced the Secretary-General’s statement (document A/C.5/78/27) on the programme budget implications of draft resolution A/C.2/78/L.59 “Follow-up to and implementation of the outcomes of the International Conferences on Financing for Development”, approved by the Second Committee on 22 November.  [By the text, the Assembly would recommend the exploration of further voluntary options related to special drawing rights that could serve the needs of developing member countries of the International Monetary Fund and would call for the urgent voluntary rechannelling of special drawing rights to countries most in need.] The Secretariat proposes resources of $1.28 million, comprising $362,800 under Section 2, General Assembly and Economic and Social Council affairs and conference management; $866,900 under Section 9, Economic and Social Affairs; and $54,100 under Section 29C, Office of Information and Communications Technology.

Amjad al-Kumaim, Vice Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced the Advisory Committee’s related reports.  On the programme budget implications for draft resolutions adopted by the Sixth Committee (A/78/7/Add.32, A/C.6/78/L.4); the Third Committee (A/78/7/Add.34, A/C.3/78/L.60/Rev.1); and three by the Second Committee on:  “Promotion of inclusive and effective international tax cooperation at the United Nations” (A/78/7/Add.36, A/C.2/78/L.18/Rev.1); “Follow-up to the Fifth United Nations Conference on the Least Developed Countries” (A/78/7/Add.37, A/C.2/78/L.57); and “Follow-up to and implementation of the SIDS Accelerated Modalities of Action (SAMOA) Pathway and the Mauritius Strategy for the Further Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States” (A/78/7/Add.35, A/C.2/78/L.45), the Advisory Committee recommends the consideration of the resources as proposed by the Secretary-General.  For draft resolution (A/78/7/Add.33, A/C.3/78/L.55) by the Third Committee, he appreciated the support and contribution from the Government of Cameroon for the Centre for Human Rights and Democracy in Central Africa, recommending nine of the 11 proposed posts. 

The Advisory Committee recommended the reduction of one consultant and a P-2 Economic Affairs Officer GTA position instead of the proposed P-3 General Temporary Assistance position with respect to the proposed resources related to the Second Committee on the Follow-up to and implementation of the outcomes of the International Conferences on Financing for Development (A/78/7/Add.38, A/C.5/78/27).  He noted that the programme budget implications are reflected under sections 2, 9, 10 and 29C of the proposed programme budget for 2024, as well as section 36, Staff assessment and income section 1, Income from staff assessment.