The current system of own resources depends on three streams of revenue collected by Member States to finance expenditure: ‘traditional own resources’, consisting of 80 % of customs duties and sugar levies collected by Member States in accordance with the EU’s common external tariffs (€20.1 billion in 2016, or 14 % of revenue – see Figure 2); an own resource made up of a percentage of the Member States’ estimated income from value added tax (VAT) – €15.9 billion in 2016, or 11.1 %; and an own resource based on a fixed percentage of Member States’ GNI (€96.2 billion in 2016, or 66.8 %). There are other sources of revenue that complement own resources: taxes on EU staff salaries, contributions from non-EU countries to certain EU budget programmes, fines on companies for breaching competition law, and interest on late payments and fines. However, own resources account for the lion’s share of EU revenue, amounting to €132.2 billion in 2016, compared with €1.4 billion in other revenue. There is sometimes also surplus revenue carried over from one financial year to the next: in 2016, the surplus carried over from 2015 was €10.6 billion. Own resources mobilised to cover EU budget spending are currently capped at 1.20 % of EU GNI per year.
In focus
We write about
Blogroll
Disclaimer and Copyright statement
The content of all documents (and articles) contained in this blog is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy.
For a comprehensive description of our cookie and data protection policies, please visit Terms and Conditions page.
Copyright © European Union, 2014-2024. All rights reserved.
Be the first to write a comment.