Finance & risk management
Multi-annual contribution
The Ministry of Economic Affairs and Climate Policy provides the basic budget for the performance of CBS’ statutory duties. Every five years, the Director General of Statistics draws up a Multi-annual Programme outlining the main activities that CBS will perform. These activities fulfil CBS’ statutory duties and fit within the financial and organisational parameters.
The multi-annual contribution from the Ministry of Economic Affairs and Climate Policy is intended to fund CBS’ regular programme over the 2024-2028 period. This multi-annual contribution does not yet take into account wage and price compensation received during the year in question for increased wage costs and increased material costs. Additional contributions for new European statistical obligations have similarly not yet been taken into account. The amounts include the one-off contribution received in 2022 for the structural strengthening of ICT, of which an annual amount of €3.25 million can be allocated to the years 2024 to 2028 inclusive. The multi-annual contribution for the planning period is an average of around €172 million per year (in 2024 €172.2 million, in 2025 €170.6 million, in 2026 €170.7 million, in 2027 €172.8 million and in 2028 €172.8 million).
The starting position in 2024 is that most of the basic budget is required to produce European statistics. The remainder of the basic budget can be used to meet additional statistical requirements. The Multi-annual Programme 2024-2028 is based on the premise that the statistics financed from the basic budget of the Ministry of Economic Affairs and Climate Policy in 2023 will be continued.
Financial risks
For this Multi-annual Programme it is assumed that pay rises and pension contribution increases under collective labour agreements in 2024 and subsequent years will be compensated in full by the Ministry of Economic Affairs and Climate Policy. In addition, less than full compensation for wage increases agreed in collective labour agreements, pension costs, price rises or new tasks cannot be absorbed without consequences for the statistical programme. In such circumstances, CBS will consult the Ministry of Economic Affairs and Climate Policy to reach appropriate solutions.
In addition to funding from the Ministry of Economic Affairs and Climate Policy, CBS expects requests for statistical information, in particular from government authorities, to generate more than €50 million per year in revenues in the new multi-annual period. If these revenues fall short, the fixed personnel costs will continue, which may have financial consequences. It was agreed in the working agreements between CBS and the Ministry of Economic Affairs and Climate Policy that in the event of a substantial reduction in additional statistical services the Ministry would be jointly responsible for absorbing the losses. However, this will only apply in the event of a substantial problem caused by exogenous circumstances and not in the case of policy decisions initiated by CBS. Moreover, CBS cannot reasonably bear the consequences itself.
CBS must include a liability for outstanding holidays in its financial statements. The bulk of the leave balance consists of savings leave hours, which are usually taken or paid out at the end of employment. Due to the increased leave options available under the new 2022-2024 central government collective labour agreement, the amount of outstanding leave is expected to increase sharply in the years 2024 to 2028 inclusive. This will put additional pressure estimated at €2-3 million per year on the financial result and equity. CBS will consult the Ministry of Economic Affairs and Climate Policy to find appropriate solutions.