The European Union has a budget for financing all its policies and Institutions. Policies are protection of the environment, external relations, agriculture, research, culture, development aid, etc.
To pay all its expenses, the EU has some sources of income, as taxes raised on behalf of EU itself, VAT-based own resources, GNI-based own resources and other minor income.
The EU Budget is decided and adopted by the European Parliament and by the EU Council on yearly basis, on the proposal of the European Commission and is inscribed in the 7 years Multiannual Finance Framework.
This is a framework for financial programming and budgetary discipline, which ensure that EU spending is predictable and stays within the agreed limits.
The execution of the EU budget is verified by the European Parliament and the Court of Auditors. The following links provide some figures based on the European Commission data on the EU annual budget: