Foreign Ministry publishes its draft budget for 2010
Press release 201/2009
31 July, 2009
The Ministry for Foreign Affairs proposed in its draft budget for 2010 to the Ministry of Finance on 15 May a total of EUR 1.262,9 million to be allocated to the administrative branch of the Foreign Ministry. This exceeds by EUR 27.6 million the assigned spending limits. The exceeding amount is due to the membership fees related to the activities of the Ministry, the increase in the civil crisis management and carrying out the cooperation of neighbouring areas as stated in the current Strategy.
The Foreign Ministry has proposed in its draft budget for 2010 the objectives for social effectiveness as stated in the Strategy of the Ministry.
The draft budget proposed for the operating expense item to be granted EUR 207.5 million. EUR 2.8 million exceeding the assigned spending limits is due to changes in the representation network, pension contributions of the representations’ staff salaries and the EU’s common Schengen visa system. Finland will establish a new representation in Astana, Kazakhstan, in autumn 2009 as well as improve its representation in Baghdad, Iraq. The Foreign Service Productivity Programme shall continue in 2010 with the aim of cutting down 40 man-years in the Foreign Service in the course of the year.
The draft budget proposed EUR 50.8 million to the maintenance of the Finnish crisis management troops and EUR 21.9 million to the participation of the civil personnel which exceeds the assigned spending limits by EUR 3.6 million. This proposition follows the guidelines of the enlargement of civil crisis management as stated in the Government Security and Defence Policy Report. The estimated number of hired personnel in military and civil crisis operations is 1.060 persons in 2010.
EUR 19.5 million was proposed for cooperation with neighbouring areas which exceeds the assigned spending limits by EUR 4.0 million. The activities are scheduled to focus more than before on the development of financial cooperation.
The development cooperation expenses of the State are estimated to total EUR 983.4 million in 2010 which corresponds to 0.55 percent of the gross national income. Under the main title, item Actual development cooperation was proposed EUR 796.5 million. This includes EUR 1.6 million as expenditure for a cooperation project with the development policy department of Great Britain. The project refunds have been taken into account in the refunds received by the administrative branch of the Ministry. EUR 3.4 million of the development cooperation appropriations have been transferred for operating expenses to be used for administrative expenses of development cooperation.
The sum of EUR 15 million is presented to raise the capital of Finnfund, the Finnish Fund for Industrial Cooperation Ltd.
The draft budget proposes EUR 115.5 million for membership fees and financing contributions. This exceeds the frame by EUR 15.6 million. Out of the compulsory contributions, the UN financing contribution, among others, has increased since 2009. The highest single increase is proposed for Finland’s contribution to the Global Environment Facility. Finland’s contribution was proposed to reach EUR 15 million instead of the earlier EUR 7.8 million.
The administrative branch of the Foreign Ministry is estimated to receive EUR 3.1 million of different refunds that are not included in the Ministry’s operating expenses.
More information: Mr. Risto Hakoila, Head of Financial Unit, tel. +358 9 1605 5870
Ms. Katja Bordi, Budget Planner, tel. +358 9 1605 5990
For development cooperation: Ms. Ulla Järvelä-Seppinen, Senior Officer of General Development Policy and Planning Unit, tel. +358 9 160 56289
For cooperation of neighbouring areas: Ms. Minni Hyrkkänen, Senior Officer, tel. +358 9 160 55610