The budget of the Union is determined by ITU Council on a biennial basis. ITU’s budget for the years 1998/1999 was set by Council in 1997 at CHF 327,644,000.

The number of Contributory Units pledged by Member States in 1999 increased slightly to 368^3/16 units from 362^9/16 in 1997, decreasing the value of the unit by 1.8% to CHF 328,000. Contributions from Member States in 1999 totalled CHF120,786,000.

The Contributory Unit for ITU Sector Members was set at 65,600 for the period 1998/99. The number of units paid by Sector Members for the 1999 financial year amounted to 370^11/16, an increase of 11.5% over 1997, for a total income of CHF 24,317,000.

Overall projected costs for the years 2000/2001 will see the Radiocommunication Sector (ITU-R) continue to account for the largest proportion of ITU budgeted costs, followed by the Telecommunication Development Sector (ITU-D) and the Telecommunication Standardization Sector (ITU-T).

Within the ITU-R, publications, including the voluminous Radio Regulations, will represent the largest budgeted cost item, followed by Study Group activities and work relating to space networks. The lion’s share of ITU-D budgeted costs will cover direct assistance to countries in need and the maintenance of the Union’s regional presence, followed by training initiatives in the fields of technology, management and human resources. As befits a body devoted to technical standardization, the budgeted costs of the ITU-T are overwhelmingly dedicated to Study Group work. The work of General Secretariat, the Union’s administrative arm, will be responsible for slightly over 9% of total costs for the period.

Within the budget of the General Secretariat, policymaking activities and conferences account for the largest proportion of costs for the 2000/2001 period, followed by External Affairs and TELECOM, the ITU division charged with staging the world and regional telecommunications exhibition and forum.

Efficiency Gains During 1999

New working methods implemented during the 1998/99 budgetary period resulted in efficiency gains and cost savings, which were used to fund a number of internal ITU projects.

Construction of a new staff cafeteria at a cost of CHF5.5 million was partly offset by a CHF1.8 million contribution from savings effected during 1998/99.

A further CHF1.7 million in savings was used to fund a new computer centre, which will strengthen ITU’s internal information technology systems and provide savings on electricity consumption amounting to around CHF30,000 per annum. The new centre also created additional office space for ITU staff, obviating the need to pay rental charges amounting to as much as CHF66,000 per annum.

Budget savings over the 1998/99 period also helped fund the replacement of the Union’s obsolete colour printing system. The purchase of new digital offset equipment will help ITU improve the quality of a wide range of reports, magazines and brochures, and will save around CHF0.5 million per annum compared with the cost of printing using the old equipment, or CHF1.7 million per annum compared with a fully outsourced solution. The new equipment’s print-on-demand capability also reduces the need to keep a large inventory of publications, and will provide new opportunities to generate additional revenue as an outsourcing bureau for other UN organizations.

Telecommunications Development Projects

The Union’s 1998/99 budget provided for some CHF53.5 million worth of telecommunication development activities, with a forecast income of CHF4.32 million. In reality, ITU achieved an outstanding result, exceeding planned revenues by CHF10.3 million for a total income of CHF14.6 million.

Tripartite agreements between ITU, the United Nations Development Programme (UNDP) and some Member States in receipt of development aid necessitated the payment of some CHF3.4 million in administrative costs to UNDP, which were absorbed within the existing appropriations of the Union.