The main principle is that EU funding has to be utilised only when sharing resources looks sensible to the Union's member countries. The EU's yearly budget totals to around '130 billion. This is approximately 1% of the economic wealth yielded by the member countries every year.
The budget determines income and expenditure for the year, lists all the actions that are to be financed and also fixes total amount of money and staff obtainable for each. The budget also determines the amount of each payment and its authorisation. A ceiling on the expenditure limit is accorded by the member states' governments and parliaments. The limitation at present is set at 1.24% of the Union's gross national income.
The budget in the year 2008 has apportioned 45% of its total expenditure to make the EU economy more aggressive and lively. This year the EU budget has plans to narrow the space between the rich and the poor member states and regions. Agriculture is apportioned with 32% of the budget which is also a major area of expenditure. Rural development and environment takes 11% and the total cost for the administrative to run the EU works up to 6% of the total expenditure.
2. An upper limit for expenditure which is agreed by the member states' governments and parliaments. ...Show more