FAO Budget Boosted $97.2 Million

ROME - Dec 10/03 - SNS -- The United Nation's Food and Agriculture Organization (FAO) saw its budget cut increased U.S. $97.2 million during its 32nd governing Conference, while term limits were implemented for future FAO Directors-General.

FAO's budget was frozen from 1994 through 2001 at $650 million and increased in 2002-2003 to $651.8 million. The Conference of agriculture ministers and senior officials voted FAO a 2-year budget of $749 million.

While representing a substantial increase, the FAO complained it constituted "a cut of $51 million in real terms due to inflation and changes in currency exchange rates. To maintain the same purchasing power, FAO would have needed a budget of $800.3 million for 2004-2005."

Commenting on the outcome of the Conference, Chairman Jim Sutton, Agriculture and Forestry Minister of New Zealand, said: "I think the fact that we got complete consensus on the budget is a good thing, even though we can agonize over changes in the value of the US dollar and I think we can be satisfied that the Organization is sufficiently funded to maintain a good level of work, increasing the effectiveness of what it does."

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