Preliminary draft supplementary and amending budget no 4 to the budget for 2001 General statement of revenue section III - Commission
Date: 2001-05-30
Institutions: Directorate-General for Budget, European Commission
Subjects: European Committee of the Regions, European Economic and Social Committee, amending budget, research and development, supplementary budget













EUR-Lex - 52001SC0793 - EN






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52001SC0793

Preliminary draft supplementary and amending budget no 4 to the budget for 2001 general statement of revenue section III - Commission  /* SEC/2001/0793 final */  









PRELIMINARY DRAFT SUPPLEMENTARY AND AMENDING BUDGET No 4  TO THE BUDGET FOR 2001 GENERAL STATEMENT OF REVENUE SECTION III - COMMISSION(presented by the Commission)Having regard to:- Article 78 of the Treaty establishing the European Coal and Steel Community,- Article 272 of the Treaty establishing the European Community,- Article 177 of the Treaty establishing the European Atomic Energy Community,- Article 15 of the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities, [1] as last amended by Regulation No 762/2001 [2] of 9 April 2001,[1]  OJ L 356, 31.12.1977, p. 1.[2]  OJ L 111, 20.4.2001, p. 1.The European Commission hereby presents to the budgetary authority draft supplementary and amending budget No 4 to the 2001 budget for the reasons set out in the explanatory memorandum.TABLE OF CONTENTS1.1. Revenue1.1.1. Revision of the forecasts of customs duties , VAT bases & GNP bases1.1.2. Correction of budgetary imbalances in favour of the United Kingdom (1997-2000)1.2. Expenditure1.2.1. Increase in payment appropriations for Chapter B7-54 - western Balkans1.2.2. Amendment of the remarks to Chapter B7-70 - Democracy and human rights2. General statement of revenue3. Statement of expenditure3.1. Section III: CommissionExplanatory memorandumThis Preliminary Draft Supplementary and Amending Budget No 4 to the 2001 budget consists of two main elements related to payment appropriations: the balance for the financial year 2000 and an increase in payment appropriations for assistance to the reconstruction of the western Balkans in 2001. In view of the urgent needs in the western Balkans, the Commission would ask the budgetary authority to adopt this SAB before the summer break, so that the payment flow will not be interrupted.In accordance with Article 32 of the Financial Regulation, the balance of 2000 should be entered in the budget year 2001. The closure of the accounts for the financial year 2000 shows a surplus of EUR11 612.7 million, which is therefore entered as revenue in the 2001 budget. In addition, the revenue part of this PDSAB contains a revision of the forecasts of customs duties and of the VAT and GNP bases to be applied for the budget year 2001 and the correction of budgetary imbalances in favour of the United Kingdom for 1997, 1999 and 2000.On the expenditure side, an update of the payment requirements for the four budget lines contributing to the assistance to western Balkans countries shows unmet requirements of EUR380 million due to the rapid implementation of the assistance on the ground and to the front-loading of commitment appropriations in 2000, which have so far not been matched by payment appropriations. This PDSAB accordingly proposes an increase of EUR350 million in Chapter B7-54, assuming that the remaining requirements can be met in the course of the year if and when appropriations become available in other budget lines. This PDSAB also proposes changes to some remarks in the budget lines to support the promotion of human rights, so as to allow continuing administrative management of the lines.Taking into account the provisional estimates for the 2000 balance already entered in the 2001 budget (EUR1 635.6 million, including SABs 1 and 2/2001) and the EUR350 million proposed for the western Balkans, entering the balance of EUR11 612.7 million reduces the own resources to be paid by the Member States by EUR9 627.1 million. The following table compares the financing by Member States resulting from this SAB with that provided for in the 2001 budget.&gt;TABLE POSITION&gt;1.1. Revenue1.1.1. Revision of the forecasts of customs duties , VAT bases & GNP basesSince the adoption of supplementary and amending budget 1/98, the Commission has proposed extending the adjustment of the calculations of financing normally contained in one of the year's supplementary and amending budgets to the revised forecasts of customs duties and of the VAT and GNP bases.The Commission believes that the decision to use revised estimates for these aggregates in a supplementary and amending budget for the year in question is a logical extension of the earlier practice. In the SAB revising the revenue side of the budget, the Member States' VAT and GNP contributions are normally adjusted in line with any change in expenditure, the balance from the previous year and the revised figures for the UK correction. The use of revised forecasts of own resources improves the accuracy of the payments that Member States are asked to make during the budget year and reduces the adverse impact of the unavoidable forecasting errors from the previous year.The use of the exchange rate of 29 December 2000 for converting amounts expressed in national currencies into EUR avoids distortion since it is this rate which is used to convert budget estimates from EUR into national currency when amounts are called in (as stipulated in Regulation No 1150/2000).The revised forecasts of customs duties, VAT and GNP bases for 2001 set out in the following table were adopted at the meeting of the Advisory Committee on Own Resources on 27 April 2001.Revised forecasts of customs duties, VAT & GNP bases for 2001&gt;TABLE POSITION&gt;1.1.2. Correction of budgetary imbalances in favour of the United Kingdom (1997-2000)The correction of budgetary imbalances in favour of the United Kingdom to be entered in this SAB covers three years (1997, 1999 and 2000).1.1.2.1. Calculation of the correctionsIn the document laying down the method of calculation, financing, payment and entry in the budget of the correction of budgetary imbalances [3] (the "calculation method") the Commission states that it will propose adjustments as soon as possible if the actual situation diverges considerably from the figures forecast. In this SAB it is proposed that the 2000 correction, previously entered in the 2001 budget, and the 1999 correction, previously entered in the 2000 budget and not adjusted since, be updated. Finally, this SAB also contains the final calculation for the 1997 correction.[3]  Council of the European Union, 5455/94, 9 March 1994.Update of the correction for 2000The current estimate does diverge considerably from the estimate for the 2000 correction entered in the 2001 budget. An update of the 2000 correction, to be inserted in this SAB, is therefore proposed.The following table summarises the changes compared to the estimate entered in the 2001 budget.&gt;TABLE POSITION&gt;Table 1 shows that, as a result of these changes, the updated figure for the UK correction is approximately EUR803.9 million lower than the previously entered amount.The difference is due to the combined effect of four factors:* The decrease in the United Kingdom's share of European Union revenue decreases the correction by EUR123.7 million.* The increase in the United Kingdom's share of European Union expenditure decreases the correction by EUR436.2 million.* The decrease in total expenditure allocated to the Member States (due to the underexecution of entered expenditure) decreases the correction by EUR445.9 million.* The decrease in the so-called UK advantage increases the correction by EUR202.0 million. The "advantage" is the benefit that the UK derives from the current own resources system as compared with the previous ones (due to the introduction of the GNP resource and the capping of the VAT bases). [4][4]  The advantage according to the current estimate is, in fact, negative and consequently amounts to a "disadvantage". The reason is that the balances in respect of previous years, but paid in 2000, have to be taken into account according to the current "calculation method". These balances will, however, not be taken into account for the final calculation of the 2000 correction, the result of which will be entered in the budget in 2004.The revised estimate of the UK correction for 2000 consequently amounts to EUR4 426 568 742, which corresponds to a decrease of EUR803 894 705 compared with the preliminary estimate entered in the 2001 budget.Update of the correction for 1999At the time of the presentation of the SAB revising the financing side of the 2000 budget (SAB 1/2000) the Commission stated that it was not "in a position to determine whether significant divergences between the initial and the revised estimate have been registered in the basic data which could justify an update of the 1999 correction". An update was consequently not proposed.The data now available show, however, that the current estimate diverges considerably from the estimate for the 1999 correction entered in the 2000 budget. An update of the 1999 correction, to be inserted in this SAB, is therefore proposed.The following table summarises the changes compared with the estimate entered in the 2000 budget.&gt;TABLE POSITION&gt;Table 2 shows that, as a result of these changes, the updated figure for the UK correction is approximately EUR1 299.5 million higher than the amount previously entered.The difference is due to the combined effect of four factors:* The increase in the United Kingdom's share of European Union revenue increases the correction by EUR377.9 million.* The decrease in the United Kingdom's share of European Union expenditure increases the correction by EUR595.3 million.* The decrease in total expenditure allocated to the Member States decreases the correction by EUR61.1 million.* The decrease in the so-called UK advantage increases the correction by EUR387.3 million. The "advantage" is the benefit that the UK derives from the current own resources system as compared to the previous ones (due to the introduction of the GNP resource and the capping of the VAT bases). [5][5]  The reason for the negative amount of the "advantage" is the same as explained in footnote 4, p.8.The revised estimate of the UK correction for 1999 consequently amounts to EUR4 935 499 050, which corresponds to an increase of EUR1 299 516 444 over the preliminary estimate entered in the 2000 budget.Final calculation of the correction for 1997The result of the final calculation of the correction for 1997 is EUR3 557 681 710, i.e. an increase of 1 580 132 996 compared with the amount previously entered in SAB 1/98.The following table summarises the changes compared with the estimate entered in SAB 1/98.&gt;TABLE POSITION&gt;The difference is due to the combined effect of four factors:* The increase in the United Kingdom's share of European Union revenue increases the correction by EUR1 503.8 million.* The increase in the United Kingdom's share of European Union expenditure decreases the correction by EUR11.7 million.* The increase in total expenditure allocated to the Member States increases the correction by EUR 9.7 million.* The decrease in the so-called UK advantage increases the correction by EUR78.3 million. The "advantage" is the benefit that the UK derives from the current own resources system compared with the previous ones (due to the introduction of the GNP resource and the capping of the VAT bases).1.1.2.2. Entry in the budget of the revised estimates for 2000 and 1999 and the final amount of the 1997 correctionAmount to be entered (Chapter 15)The total amount of the UK corrections to be entered in SAB 4/2001 is the sum of:* The total amount of the revised estimate for the 2000 correction.* The difference between the revised estimate for the 1999 correction and the amount previously entered (in the 2000 budget).* The difference between the final amount of the 1997 correction and the amount previously entered (in SAB 1/98).The amount to be entered in this SAB is therefore equal toEUR(4 426 568 742 + 1 229 516 444 + 1 580 132 996) = EUR7 306 218 182.Financing of the corrections to be entered in the budget - Chapter 15According to the "calculation method", the correction for year n shall be financed according to the GNP key of year n + 1.The total amount of the revised estimate for 2000 is therefore budgeted and financed according to the revised GNP key of this SAB and entered in Chapter 15.The revised estimate for 1999, however, should be financed according to the GNP key of 2000. The first estimate entered in the 2000 budget was reinserted in SAB 1/2000 and financed according to the revised GNP key of that SAB. The difference between the new revised estimate and the amount previously entered is therefore financed according to the GNP key of SAB 1/2000 and entered in Chapter 15.Concerning the final correction for 1997 the "calculation method" states that in addition to the final calculation of the amount of the UK correction, a definitive calculation should also be made for the financing. The final correction for 1997 is therefore entered in two stages. The difference between the final amount of the 1997 correction and the amount previously entered (in SAB 1/98) is entered in Chapter 15 according to the GNP key of this SAB. The entire financing is then recalculated according to the final VAT and GNP bases of 1998 and compared with the payments already entered in the budget. The difference per Member State is entered in Chapter 35 (see below Definitive calculation of the financing of the 1997 correction).The entry in Chapter 15 of the three different UK corrections according to the relevant GNP keys is summarised below.&gt;TABLE POSITION&gt;Definitive calculation of the financing of the 1997 correction - Chapter 35The definitive calculation of the financing of the 1997 correction is based on the final amount of the correction and on the actual GNP and VAT bases of n + 1 (1998), as they appear at the end of n + 3 (2000).The amounts entered in Chapter 35 corrects:* The differences as regards the "direct effect", i.e. the difference between what each Member State should pay for the final amount of the 1997 correction according to the final 1998 financing key and the amounts entered in SAB 1/98 and in Chapter 15 of this SAB, and* The differences as regards the "indirect effect", i.e. the difference between the implicit effect of the final amount of the 1997 correction on the uniform rate of VAT (and the corresponding effects on each Member State's VAT and GNP payments) and the implicit effects of the amounts of the 1997 correction entered in SAB 1/98 and in Chapter 15 of this SAB.The results are shown in Table 5.&gt;TABLE POSITION&gt;The direct and indirect effects of the final amount of the 1997 correction financed according to the financing key of n + 1 and the direct and indirect effects of the amounts entered in respect of the 1997 UK correction in SAB 1/1998 and in Chapter 15 of this SAB are compared in Table 6.&gt;TABLE POSITION&gt;1.2. Expenditure1.2.1. Increase in payment appropriations for Chapter B7-54 - western BalkansChapter B7-54 finances the European Union's assistance and reconstruction measures in the countries of the western Balkans. This financial assistance (not including the macroeconomic assistance in B7-548) is granted under four budget lines:* Article B7-541 finances the programmes of financial assistance for Bosnia, Croatia, Albania and FYROM.* Article B7-542, a new line in the 2001 budget, finances measures for Serbia and Montenegro.* Article B7-546 finances aid for the reconstruction of Kosovo* Article B7-547 contains the European Union's contribution to the OHR and MINUK.The situation as regards payment appropriations in this chapter, particularly under Article B7-546, is already fairly critical. While the initial budget allocation, including appropriations carried over from the previous financial year, comes to EUR515.5 million, requirements for the current year already indicate a foreseeable shortfall of EUR381.7 million.This situation is largely due to the conditions under which the 2001 budget was adopted: the budgetary authority stipulated that some of the operations planned for Kosovo in 2001 should be brought forward to late 2000. As part of this exercise, Article B7-546 received an extra EUR174 million in commitment appropriations, but without any corresponding increase in payment appropriations. Accordingly, the budgetary authority took the logical step of reducing the appropriations proposed for both commitments and payments in 2001. Article B7-546 thus has the correct allocation of commitment appropriations, but the payment appropriations lag far behind requirements.The reconstruction of the region is continuing at a buoyant pace and implementation of the programmes has now reached its cruising speed. The devolution of aid management for the Federal Republic of Yugoslavia (via the European Reconstruction Agency) and Bosnia (through the Sarajevo delegation) has considerably reduced the time needed to conclude contracts and pay the initial advances. The average duration of projects financed in this region is thus far shorter than for other external aid programmes and, as a result, the amount of payment appropriations available must be adjusted to satisfy this implementation profile.At the end of the first quarter, Article B7-546 has already exhausted its payment appropriations and, to meet the Agency's requirements for the second quarter, the line has received an extra EUR110 million from other lines in the chapter.A substantial increase for the chapter is essential to provide payment appropriations for the operations for which there are commitments and contracts and to give free rein to the operational capacity demonstrated by the Commission and the Reconstruction Agency. Otherwise, payments would have to be suspended at an early stage in the year and this would be extremely damaging to the European Union's image in a region which constitutes once of its political priorities.The situation as regards payment requirements, based on the financial schedules for ongoing contracts and on payment forecasts for new operations to be launched in 2001, is set out below:&gt;TABLE POSITION&gt;* including appropriations carried over from the previous financial yearThese schedules and forecasts reveal a foreseeable shortfall of EUR382 million. The Commission estimates that an additional EUR350 million in payment appropriations is necessary to cover its commitments. It should be possible to finance the remaining shortfall in the course of the year by transfers, depending on the appropriations available in other lines.Details of the shortfall by budget line are set out below.Article B7-541Payment requirements of EUR328 million have been identified on the basis of the schedules of payment for ongoing contracts and payment forecasts for new operations to be carried out during the year. For information, Article B7-541 is the result of the merger between Articles B7-541 and B7-542 (2000 budget nomenclature). The outturn for payments in 2000 was EUR326 million (not including Serbia).&gt;TABLE POSITION&gt;Article B7-542This line was created in the 2001 budget to finance operations in the Federal Republic of Yugoslavia (not including Kosovo). It is expected that all existing outstanding commitments will be cleared and the Agency estimates that 60% of the commitment appropriations available can be used for new operations in 2001.Article B7-546Requirements in this line largely outstrip the allocation in terms of payments, with the appropriations available barely sufficient to cover the Agency's activities in the first quarter of the year. A transfer within the chapter financed the Agency's activities in the second quarter.The payment forecasts were based on the schedules of payment supplied by the Pristina Agency and take account of the capacity for absorbing the reconstruction programmes which are administered locally.The average duration of a project comes to three years. Some 65% of the amount committed is paid in the first year of the contract and the balance is cleared over the next two years (30% in the second year and 5% in the final year).Article B7-547This line finances the European Union's annual contribution to the OHR and UNMIK budgets. The appropriations available in this line are in keeping with the Commission's financial commitments for 2001.1.2.2. Amendment of the remarks to Chapter B7-70 - Democracy and human rightsIn an effort to reduce the number of budget lines related to external actions, Articles B7-704 "Support for the activities of international criminal tribunals and for the setting-up of the International Criminal Court" and B7-709 "Support for democratic transition and the supervision of electoral processes", which existed in 2000 together with BA lines (with different nomenclature), were not proposed in the PDB 2001. However, the budgetary authority reintroduced the lines in the budget, without the corresponding BA lines. In order to allow continuing administrative management, it is proposed to include a standard remark in the comments of Article B7-702A providing that "this appropriation also covers expenditure on technical and administrative management under Articles B7-704 and B7-709". This modification does not entail additional expenditure.&gt;TABLE POSITION&gt;2. General statement of revenue&gt;TABLE POSITION&gt;TITLE1--OWN RESOURCES (SUMMARY TABLE)&gt;TABLE POSITION&gt;TITLE 1--OWN RESOURCES (IN DETAIL)CHAPTER 1 2 - CUSTOMS DUTIES AND OTHER DUTIES REFERRED TO IN ARTICLE 2(1)(B) OF DECISION 94/728/EC, EURATOMArticle 1 2 0 - Customs duties and other duties referred to in Article 2(1)(b) of Decision 94/728/EC, Euratom&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Article 2(1)(b) thereof.The assignment of customs duties as own resources to the financing of common expenditure is the logical consequence of the free movement of goods within the Community.&gt;TABLE POSITION&gt;CHAPTER 1 3 - OWN RESOURCES ACCRUING FROM VALUE ADDED TAX PURSUANT TO ARTICLE 2(1)(C) OF DECISION 94/728/EC, EURATOMArticle 1 3 0 - Own resources accruing from value added tax pursuant to Article 2(1)(c) of Decision 94/728/EC, Euratom&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Article 2(1)(c) thereof.If account is taken of the capped VAT bases and of the compensation arrangements for the United Kingdom, own resources accruing from value added tax are as follows at the uniform rate (0.74842%):&gt;TABLE POSITION&gt;CHAPTER 1 4 - OWN RESOURCES BASED ON GROSS NATIONAL PRODUCT PURSUANT TO ARTICLE 2(1)(D) AND THE FIRST SUBPARAGRAPH OF ARTICLE 6 OF DECISION 94/728/EC, EURATOMArticle 1 4 0 - Own resources based on gross national product pursuant to Article 2(1)(d) and the first subparagraph of Article 6 of Decision 94/728/EC, EuratomItem 1 4 0 0 - Own resources based on gross national product pursuant to Article 2(1)(d) of Decision 94/728/EC, Euratom, with the exception of those corresponding to the European Agricultural Guidance and Guarantee Fund Guarantee Section monetary reserve, the reserve for loan guarantees and the reserve for emergency aid&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Article 2(1)(d) thereof.The rate, excluding the EAGGF Guarantee Section monetary reserve, the loan guarantee reserve and the emergency aid reserve, to be applied to Member States' gross national product for this financial year is 0,4056%.&gt;TABLE POSITION&gt;Item 1 4 0 1 - Own resources based on gross national product pursuant to Article 2(1)(d) and the first subparagraph of Article 6 of Decision 94/728/EC, Euratom, corresponding to the European Agricultural Guidance and Guarantee Fund Guarantee Section monetary reserve&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Article 2(1)(d) and the first subparagraph of Article 6 thereof.The provisional amount is produced by applying a rate of 0.0058 % to Member States' gross national product.The breakdown of payments is as follows:&gt;TABLE POSITION&gt;However, the amount actually to be paid will be limited to the amount of the transfer from Chapter B1-6 0 of the statement of expenditure of Section III "Commission", intended for the monetary reserve.Item 1 4 0 2 - Own resources based on gross national product pursuant to Article 2(1)(d) of Decision 94/728/EC, Euratom, corresponding to the reserve for loans and loan guarantees&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Article 2(1)(d) thereof.Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 established a Guarantee Fund for external action (OJ L 293, 12.11.1994, p. 1).Council Regulation (EC, Euratom) No 2729/94 of 31 October 1994 amending Regulation (EEC, Euratom) No 1552/89 implementing Decision 88/376/EEC, Euratom on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 5).Council Regulation (ECSC, EC, Euratom) No 2730/94 of 31 October 1994 amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (OJ L 293, 12.11.1994, p. 7).Council Regulation (EC) No 2040/2000 of 26 September 2000 on budgetary discipline (OJ L 244, 29.9.2000, p. 27).&gt;TABLE POSITION&gt;Item 1 4 0 3 - Own resources based on gross national product pursuant to Article 2(1)(d) of Decision 94/728/EC, Euratom, corresponding to the emergency aid reserve&gt;TABLE POSITION&gt;Conclusions of the Edinburgh European Council of 11 and 12 December 1992 concerning the creation of a reserve for emergency aid.Council Regulation (EC, Euratom) No 2729/94 of 31 October 1994 amending Regulation (EEC, Euratom) No 1552/89 implementing Decision 88/376/EEC, Euratom on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 5).Council Regulation (ECSC, EC, Euratom) No 2730/94 of 31 October 1994 amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (OJ L 293, 12.11.1994, p. 7).Council Regulation (EC) No 2040/2000 of 26 September 2000 on budgetary discipline (OJ L 244, 29.9.2000, p. 27).When the Commission considers it necessary to draw on this reserve, it convenes a three-way meeting as soon as possible in order to obtain the agreement of the two arms of the budgetary authority on the need to use the reserve and on the amount required. The reserve is drawn on by means of a transfer to the budget lines concerned.&gt;TABLE POSITION&gt;CHAPTER 1 5 - CORRECTION OF BUDGETARY IMBALANCESArticle 1 5 0 - Correction of budgetary imbalances granted to the United Kingdom in accordance with Articles 4 and 5 of Decision 94/728/EC, Euratom&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Articles 4 and 5 thereof.&gt;TABLE POSITION&gt;CHAPTER 1 9 - COSTS INCURRED BY THE MEMBER STATES IN THE COLLECTION OF OWN RESOURCESArticle 1 9 0 - Costs incurred by the Member States in the collection of own resources&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Article 2(3) thereof.&gt;TABLE POSITION&gt;TITLE 3--SURPLUSES AVAILABLE (SUMMARY TABLE)&gt;TABLE POSITION&gt;TITLE 3--SURPLUSES AVAILABLE (DETAILS)CHAPTER 3 0 - SURPLUS AVAILABLE FROM THE PRECEDING FINANCIAL YEARArticle 3 0 0 - Surplus available from the preceding financial year&gt;TABLE POSITION&gt;Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (OJ L 356, 31.12.1977, p. 1), as last amended by Regulation (EC, ECSC, Euratom) No 2673/1999 (OJ L 326, 18.12.1999, p. 1).Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources (OJ L 130, 31.5.2000, p. 1).In accordance with Article 32 of the Financial Regulation the balance from each financial year, whether surplus or deficit, shall be entered in the budget for the subsequent financial year.The relevant estimates of revenue or expenditure are entered in the budget during the budget procedure and, where appropriate, in a letter of amendment submitted pursuant to Article 14 of the Financial Regulation. They are drawn up in accordance with the principles set out in Article 15 of Regulation (EC, Euratom) No 1150/2000.After the closure of the accounts for each financial year, any discrepancy in relation to the estimates is entered in the budget for the following financial year through a supplementary and/or amending budget.A deficit is entered in Chapter B0-3 0 of the statement of expenditure of Section III "Commission".CHAPTER 3 5 - SURPLUS OF OWN RESOURCES BASED ON GROSS NATIONAL PRODUCT RESULTING FROM THE DEFINITIVE CALCULATION OF THE FINANCING OF THE CORRECTION OF BUDGETARY IMBALANCES FOR THE UNITED KINGDOMArticle 3 5 9 - Result of the definitive calculation of the financing of the correction of budgetary imbalances for the United Kingdom in respect of 1991 and subsequent financial yearsItem 3 5 9 7 - Result of the definitive calculation of the financing of the correction of budgetary imbalances for the United Kingdom in respect of 1997&gt;TABLE POSITION&gt;Result of the definitive calculation of the financing of the correction of budgetary imbalances for the United Kingdom in respect of 1997.&gt;TABLE POSITION&gt;&gt;TABLE POSITION&gt;&gt;TABLE POSITION&gt;&gt;TABLE POSITION&gt;TABLE 2Determination of VAT own resources to be paid and the costs borne by the other Member States to finance the United Kingdom correction to be added to the additional resource in accordance with Article 5(2) of Decision 94/728/EC, Euratom&gt;TABLE POSITION&gt;TABLE 3Determination of uniform rate and breakdown of resources based on gross national product pursuant to Article 2(1)(d) of Decision 94/728/EC, Euratom&gt;TABLE POSITION&gt;TABLE 4&gt;TABLE POSITION&gt;&gt;TABLE POSITION&gt;&gt;TABLE POSITION&gt;Note: The calculations are made to 15 decimal places&gt;TABLE POSITION&gt;Note: The calculations are made to 15 decimal placesTABLE 6Calculation of gross amount of United Kingdom correction (pursuant to Article 2(4) of the Decision on the own resources system)&gt;TABLE POSITION&gt;Calculation of Member States' shares, determination of the frozen VAT rate and the gross amount of the United Kingdom's correction&gt;TABLE POSITION&gt;TABLE 7Summary of financing of expenditure&gt;TABLE POSITION&gt;3.  Statement of expenditure3.1. Section III: Commission&gt;TABLE POSITION&gt;SUBSECTION B7 - EXTERNAL ACTIONTITLE B7-5 - COOPERATION WITH PARTNER COUNTRIES IN EASTERN EUROPE AND CENTRAL ASIA AND THE WESTERN BALKAN COUNTRIESCHAPTER B7-5 4 - COOPERATION WITH THE BALKAN COUNTRIESArticle B7-541 A----Assistance for the countries of the western Balkans - Expenditure on administrative management&gt;TABLE POSITION&gt;Former Articles B7-5 4 1 A and B7-5 4 2 ARemarks unchangedArticle B7-5 4 1--Assistance for the countries of the western Balkans&gt;TABLE POSITION&gt;Former Articles B7-5 4 1 (in part) and B7-5 4 2Remarks unchanged&gt;TABLE POSITION&gt;i After deduction of EUR 46 900 000 in payment appropriations carried over.  ii Of which EUR 106 044 000 from the operating heading and EUR 2 379 600 from the administrative heading is entered in Chapter B0-40.  iii Of which EUR 2 379 600 from the administrative heading is entered in Chapter B0-40.ArticleB7-5 4 2--Aid for reconstruction and democracy in the Republic of Serbia&gt;TABLE POSITION&gt;Former Article B7-5 4 1 (in part)Remarks unchanged&gt;TABLE POSITION&gt;Article B7-546 Aid for the reconstruction of Kosovo&gt;TABLE POSITION&gt;Remarks unchanged&gt;TABLE POSITION&gt;i After deduction of EUR 20 000 000 in payment appropriations carried over.Article B7-5 4 7 - Interim civilian administrations&gt;TABLE POSITION&gt;Remarks unchanged&gt;TABLE POSITION&gt;Of which EUR 1 000 000 is entered in Chapter B0-4 0  Of which EUR 1 000 000 is entered in Chapter B0-4 0ArticleB7-5 4 8--Macroeconomic assistance for the countries of the Western Balkans&gt;TABLE POSITION&gt;Former Article B7-5 3 2Remarks unchanged&gt;TABLE POSITION&gt;i Payment appropriations carried over.TITLE B7 - 7 - EUROPEAN INITIATIVE FOR DEMOCRACY AND HUMAN RIGHTSCHAPTER - B7-70 - EUROPEAN INITIATIVE FOR DEMOCRACY AND HUMAN RIGHTSArticle B7 - 702 A - Support for the democratisation process and strengthening of the rule of law - Expenditure on administrative management&gt;TABLE POSITION&gt;The following remarks are added:This appropriation also covers administrative expenditure under Articles B7-7 0 4 and B7-7 0 9.