Ministry for Foreign Affairs Draft Budget for 2003

In its draft budget submitted to the Ministry of Finance, 21 May, the Ministry for Foreign Affairs proposes a budget for 2003 totalling EUR 714,7 million. This is EUR 12,3 million below the budget framework provided by the government.

Concerning expenditure on activities, the Ministry proposed a budget of EUR 152,5 million, some EUR 1,2 million above the framework, and EUR 0,3 million more than the appropriation for the current year. Expenditure on activities is measured in line with the report submitted to the Parliamentary Foreign Affairs Committee in summer 2001 on the duties and resources of the Foreign Ministry. In its response to the report Parliament considered that the Foreign Ministry must be able to secure the resources required to carry out its activities. The statements of the Parliamentary Financial Affairs Committee and the Foreign Affairs Committee gave strong backing to the Foreign Ministry’s efforts for administrative development. The key challenges in 2003 are to revise the Ministry’s management system, renew the compensation system of the foreign missions, develop the system of evaluation, the reorganization of multilateral activities and changes to the mission network, and the closing down and opening of operations. The proposed budget will allow plans to go ahead for increasing staff and maintaining the Foreign Service’s large network of missions.

The draft budget for international development cooperation totals EUR 369,9 million. The overall budget proposal for development cooperation, agreed at the budget framework negotiations held in the spring, is 0.348 percent of GDP. According to initial forecasts, this would come to EUR 500,2 million, an increase of EUR 20,9 million over the previous year. The proposal will be examined at the government budget negotiations to assess the agreed 0.348 level based on the most recent GDP forecast.

Concerning crisis management activities, the main share of resources is to be devoted to funding operations in the Balkans. In particular civilian crisis management input will be increased in the operations conducted by the EU, OSCE and other areas and organizations of the international community. EUR 10,2 million is proposed for civilian crisis management, some EUR 2,7 million over the budget framework. Funding for peacekeeping operations remains in line with the framework, as the funding systems concerning the possible first EU peacekeeping operations during 2003 have yet to be agreed both at EU and national levels.

The Foreign Ministry supplemented its draft budget on 24 May, 19 June and 23 July by a total of EUR 0,306 million. The proposed amendments were of a minor nature, and for the most part (EUR 0,288) concerned the subsection (24.99.23) of the draft budget dealing with special experts. The proposed amendments are included in the Foreign Ministry’s budget proposal.

Further information:


Deputy Director General for Finance Pekka Mattila, tel: 160 55850

Head of Unit, Department for Development Cooperation Seija Kinni, tel: 160 56283

Neighbouring Area Cooperation Deputy Chief Administrator, Secretary for Cost Accounting Katja Bordi, tel: 160 55610