Mr. Chairman,

1. I have the honour to speak on behalf of the Group of 77 and China on agenda item 130, in particular on the First Performance Report on the programme budget for the biennium 2012-2013.

2. I would like to thank Ms. María Eugenia Casar, Assistant Secretary-General, the Controller for introducing the Secretary-General's report, contained in document A/67/592 as well as Mr. Carlos Ruiz Massieu, Vice-Chair of the Advisory Committee on Administrative and Budgetary Questions, for presentation of the Committee's related report contained in document A/67/639.

Mr. Chairman,

3. The Group of 77 and China attaches great importance to the effective and smooth functioning of the Organization. We have always valued the performance reports as an important element to ensure effective budget implementation, and they are one of our priorities in the budget process.

4. Moreover, as mentioned in several General Assembly resolutions, Member States must provide the Organization with the resources needed to implement mandated activities efficiently. It is our collective responsibility to demand and guarantee the full respect of the budgetary process, as set out in resolutions 41/213 and 42/211 and reaffirmed in many others.

5. The consideration of the First Performance Report is an integral part of this process and, for this reason, our Group is gravely concerned at some inconsistencies in the First Performance Report for the 2012-2013 biennium.

6. First and foremost, the Secretariat has gone beyond the decision taken by the General Assembly last year to defer the post-related recosting for this biennium to the First Performance Report. Instead, the Committee is being presented with the figure only for the 2012 recosting and being told that the recosting for 2013 could be done in the Second Performance Report. This approach does not correspond with the agreement the Committee reached last year or with the provisions of resolution 66/246, which clearly reaffirmed the established budgetary procedures and methodologies, based on its resolutions 41/213 and 42/211, and that no changes to the budget methodology, to the established budgetary procedures and practices or to the financial regulations may be implemented without prior review and approval by the General Assembly.

7. The Group also notes with serious concern that the First Performance Report does not request the Assembly to revise the level of appropriation for the biennium, but only to decide on the revised estimates. This is a serious change in how the First Performance Report is presented and, once again, is not in accordance with paragraphs 8 and 9 of resolution 66/246.

Mr. Chairman,

8. Any attempt to change the budgetary process through the resolutions on the Performance Report and the Budget Outline is, in effect, attempting to change the rules by breaking them. If we object to piecemeal budgeting because it does not give us a coherent view of the whole, we should also object to attempts at piecemeal reform of the budgetary process. The Group of 77 and China will not support any action that could be detrimental to the current budgetary process.

Mr. Chairman,

9. The Group of 77 is ready to implement last year's agreement by approving an appropriation for post-related recosting for the 2012-2013 biennium in line with actual expenditure experience. Not doing so would be, in effect, to retroactively cut the budget that we approved last year, with detrimental effects on the Organization's ability to implement intergovernmental mandates.

10. The Group also notes that the Programme Budget Implications resulting from the decisions of other Main Committees and other intergovernmental bodies shall be revised to reflect the costing parameters approved by the General Assembly, which will affect the level of the revised appropriations. We would also like to emphasize on the need to ensure all new mandated activities, including outcome of Rio+ 20, are fully implemented through the revised estimates.

11. The Group would like to assure you of our willingness to engage frankly and constructively with all partners to approve the First Performance Report.

I thank you.