António Guterres instructed the Fifth Committee the UN is dealing with its most fragile money place in years, regardless of sharp reductions already constructed into subsequent 12 months’s finances plans.
“Liquidity stays fragile, and this problem will persist whatever the closing finances accepted,” he mentioned, pointing to the “unacceptable quantity of arrears” owed by Member States.
The UN ended 2024 with $760 million in unpaid assessments, most of it nonetheless excellent, and has but to obtain $877 million in contributions due for 2025 – bringing complete arrears to round $1.586 billion.
With lower than 5 weeks remaining within the 12 months, solely 145 of UN’s 193 Member States had paid their 2025 dues in full.
Key contributors reminiscent of the US and Russia have but to pay what they owe, though China paid its full evaluation on 29 October.
“I’ve repeatedly appealed to Member States to pay their assessed contributions in full and on time,” the Secretary-Normal mentioned, warning that money shortfalls are forcing the group to function effectively beneath accepted finances ranges.
Deep spending cuts already in-built
The warning comes as delegations contemplate revised estimates for the UN’s 2026 common finances, which already replicate deep structural cuts underneath the UN80 reform initiative – a system-wide effectivity drive geared toward modernizing operations and reducing prices.
Underneath the revised proposal, the UN’s common finances for 2026 would stand at $3.238 billion, a discount of $577 million – or 15.1 per cent – in contrast with 2025. Some 2,681 posts could be minimize, an 18.8 per cent discount from present ranges.
Particular political missions would additionally face cuts of greater than 21 per cent in contrast with 2025 ranges, largely because of mission closures and streamlined staffing.
Capabilities consolidated, jobs relocated
As a part of the financial savings drive, the UN plans to consolidate payroll processing right into a single world crew throughout three obligation stations and create shared administrative hubs beginning in New York and Bangkok.
The Secretariat can be reviewing capabilities that may be moved to lower-cost places. Since 2017, lease terminations in New York have already saved $126 million, with an extra $24.5 million a 12 months in anticipated financial savings from extra closures by 2028.
The plan consists of one-time separation and relocation prices of $5.4 million, as voluntary exit programmes are used to restrict involuntary job losses.
Delegations weigh in
The revised estimates have been reviewed by the Advisory Committee on Administrative and Budgetary Questions (ACABQ) and are actually earlier than the Fifth Committee for negotiations forward of year-end finances approval.
ACABQ Chair Juliana Gaspar Ruas mentioned the physique welcomed the reform push, cautioning that the revised estimates had been ready underneath tight time constraints, limiting the ACABQ’s potential to completely assess the premise for some proposed cuts. Whereas backing consolidation and effectivity efforts, she additionally flagged uneven methodologies throughout departments and known as for clearer standards on workers relocations.
Member States recommended the Secretary-Normal’s efforts in presenting the revised estimates, acknowledged the Group’s ongoing liquidity challenges, and expressed assist for a stronger and extra agile UN.
A number of delegations, nevertheless, echoed issues in regards to the compressed timeline, warning that the late arrival of key paperwork is constraining full scrutiny. Some diplomats warned that proposed cuts fall extra closely on junior and basic service workers than on senior posts, threatening each geographic steadiness and workforce rejuvenation.
Others cautioned that proposed workers reductions seem uneven throughout the UN’s three pillars, with proportionally deeper cuts to development-related programmes.
The Secretary-Normal mentioned he was “sincerely frightened” by that concern. He insisted that, in general phrases, the event pillar is in reality dealing with the smallest proportional discount, with Africa-related programmes largely protected and the most important cuts as a substitute falling on assist and back-office capabilities reasonably than frontline supply.
“Our dedication to improvement is totally elementary and that our dedication to the African continent is totally elementary,” he mentioned.
Ultimate approval would require endorsement by the total Normal Meeting later this month.
Money disaster already affecting operations
Regardless of the deliberate reductions, Secretary-Normal Guterres mentioned the UN has already been compelled to underspend in 2025 as a result of money merely will not be out there.
“Vacancies don’t correspond to a strategic precedence,” he mentioned, “however just by the truth that folks left and we don’t the cash to pay for the alternative.”
To guard liquidity, the UN has proposed quickly suspending the return of finances credit to international locations – basically delaying reimbursements till money ranges stabilise.
“It’s troublesome to offer again cash as a result of we didn’t obtain it,” Mr. Guterres instructed the committee.
He warned that until funds enhance, monetary pressure will proceed to undermine operations no matter how lean the accepted finances turns into.
