AG/RES. 1594 (XXVIII-O/98)

PROGRAM-BUDGET OF THE ORGANIZATION FOR 1999

(Resolution adopted at the third plenary session, held on June 2, 1998)

THE GENERAL ASSEMBLY,

HAVING SEEN the report of the Preparatory Committee on the proposed program-budget of the Organization for 1999 (AG/doc.3718/98); and

CONSIDERING:

That, under Articles 54 and 55 of the Charter, the General Assembly is responsible, inter alia, for approving the Organization's program-budget and for "fixing the quota that each Government is to contribute to the maintenance of the Organization";

That in resolution AG/RES. 1531 (XXVII-O/97), operative section III.B, the General Assembly instructed the Secretary General to submit a proposed program-budget for the Regular Fund for 1999 at a level no higher than US$84,333,500;

That in resolution AG/CP/RES. 78 (286/98), the Preparatory Committee recommended to the General Assembly that specific details of the Organization's budget should be considered and approved by a special session of the General Assembly at OAS headquarters; and that accordingly, the proposed 1999 program-budget presented by the Secretary General to the Preparatory Committee in March 1998 requires reformulation, taking into account the resolutions with budgetary implications approved at this twenty-eighth regular session of the General Assembly, the ability of the member states to contribute to the Organization during the 1999 fiscal year, and other relevant concerns of the member states;

That at the Second Summit of the Americas, held in Santiago, Chile, various activities were tasked to the OAS that also need to be taken into account in reformulating the program-budget;

That it is necessary to establish guidelines which will assure transparency and disclosure in the budget-formulation process; and

That changes in the economic situation of the member states and in the needs of the Organization since 1990, when the percentages in the scale of Regular Fund quota assessments were last modified, require a reassessment of the Organization's basis of financing to assure that the burden of financing the Organization's activities and infrastructure is shared,

RESOLVES:

I. EXPENDITURE

1. To set the expenditure ceiling for the 1999 Regular Fund budget at an amount no higher than $84,333,500, and the planning level for the year 2000 Regular Fund budget at the same level, noting that these levels can only be expended providing that they can realistically be financed with income from areas outlined in operative paragraph II.2.

II. FINANCING OF THE BUDGET

2. To finance the 1999 program-budget of the Regular Fund with the quotas of the member states, estimated interest income from the Regular Fund, rental income from space in the General Secretariat Building, administrative and technical support contributions from the voluntary and specific funds, and other miscellaneous income.

3. To authorize funding for the Voluntary Fund portion of the program-budget of the Organization for 1999 at the level of total collections received by September 30, 1998, and any other funds available to them.

III. GUIDELINES

4. To instruct the Secretary General to reformulate the proposed 1999 program-budget, and to present it to the Permanent Council no later than August 15, 1998, taking into account the following:

a. That the quota payments of member states shall remain at the 1998 level;

b. The budgetary implications of the decisions taken at the twenty-eighth regular session of the General Assembly, in Caracas, Venezuela;

c. The need to maximize resources, streamline and centralize administrative activities where appropriate, adopt cost-saving measures, and eliminate waste; and

d. The comments and recommendations of the Board of External Auditors for the year ending December 31, 1997.

IV. STUDY ON SCALE OF QUOTA ASSESSMENTS

5. To request the Permanent Council to review and make recommendations on the current scale of quota assessments to the General Assembly at its special session on budgetary matters later this year.

6. To instruct the General Secretariat to prepare by August 31, 1998, a study on the scale of quota assessments, which shall take into account the following factors: the ability of the respective countries to pay and their determination to contribute in an equitable manner to the maintenance of the Organization, as stated in Article 55 of the Charter; all relevant resolutions to date; the need to maintain the maximum quota at a level of no more than 59.47%; the need to establish a minimum quota; and the experiences of other international organizations, including the United Nations.

V. SPECIAL SESSION OF THE GENERAL ASSEMBLY

7. To instruct the Permanent Council, in accordance with resolution AG/CP/RES. 78 (286/98), to convene a special session of the General Assembly to consider and approve the specific details of the 1999 program-budget resolution, the 1999 quotas, and other matters related to the program-budget and basis of financing of the Organization.