Free state budget resources for EU fund projects are possible to use effectively for projects of other EU financial instruments already in the mid-year
Responsible line ministries have learned from experience of previous years and this year responsibly and critically evaluated possibilities to use planned funding for European Union (EU) fund projects by the end-year, and already now they are informing about expected balance that could be used effectively for projects of other EU funds and financial instruments, informs the Ministry of Finance in the informative report on the state budget execution in the six months of this year within the framework of EU funds and other foreign financial assistance co-financed projects.
It is important in order to avoid “freezing” of financing in programmes of ministries and to release financing timely for the implementation of new projects. For example, in June and July this year ~40 million lats have been redistributed to the Ministry of Agriculture for Rural and Fishery Fund projects.
Information provided by ministries shows that it is planned to release another 14.7 million lats that could be used effectively for the implementation of other projects. The biggest amounts have been returned by the Ministry of Transport (14.7 million lats) and the Ministry of Economics (12.9 million lats), but the Ministry of Environmental Protection and Regional Development additionally requested the biggest amount (12.5 million lats). Therefore it is planned that in 2012 ministries will need in total ~520 million lats, which is 10% or ~60 million lats less than currently provided in the state budget for EU fund projects (~580 million lats).
By the end-June responsible line ministries have executed 94% of the state budget expenditure plan for EU fund projects thus showing progress in comparison with the first quarter, when 86% of the budget expenditure plan were executed.
Thus in the first half-year ~30% of the financing planned in budget of ministries for EU fund projects for 2012 have been acquired. Although in the 2007-2013 period the acquisition of EU funding is not endangered, re-planning of financing for following years would mean greater burden on the state budget and EU funds management in general because starting from 2014 current and the new programming period should be administered simultaneously. Therefore effective and great acquisition of EU funds by the end of 2013 is very important.
Information prepared by:
Agnese Belkevica
Deputy Head of the Communication Division
Phone: 67083938,
Agnese.Belkevica@fm.gov.lv
