The revised proposal marks a big drop from his unique ask for subsequent yr of $3.715 billion and is 15.1 per cent beneath the 2025 accepted appropriation.
Talking to the Fifth Committee of the Common Meeting – which handles UN funds and administration – Mr. Guterres described a deeply precarious outlook, with excessive arrears, delayed contributions and the “return of credit” threatening to wipe out liquidity and undermine core operations.
Workers cuts
The revised funds additionally reduces staffing from the unique 2026 proposal funding 13,809 posts (10,667 common posts plus 3,142 Particular Political Mission posts) to 11,594 posts – an 18.8 per cent reduce in contrast with 2025.
These reductions goal bigger departments and administrative features, whereas defending programmes that immediately serve Member States – significantly Least Developed International locations, Landlocked Growing International locations, small island growing States, and advocacy for Africa’s improvement.
The common funds, funded by necessary assessed contributions from Member States, covers the core programmes and operations of the UN Secretariat.
As well as, the UN has a funds particular to peacekeeping operations on a 1 July to 30 June cycle – whereas the common funds operates in accordance with the calendar yr.
Runaway liquidity disaster
The UN chief warned that the present liquidity disaster has critical implications past subsequent yr, into 2027.
Excessive arrears on the finish of final yr, totalling $760 million, coupled with a requirement to return $300 million in credit to Member States at first of 2026, removes practically 10 per cent of the funds from accessible money.
“Any delays in collections early within the yr will power us to scale back spending much more…after which doubtlessly face the prospect of returning $600 million in 2027, or about 20 per cent of the funds,” he stated.
“Which means a race to chapter,” he added, reiterating the pressing want to scale back arrears and droop the return of credit.
Earlier measures to restrict spending gave solely non permanent respite.
The UN entered 2025 with a $135 million deficit and by the top of September had collected solely 66.2 per cent of the yr’s assessments, down from 78.1 per cent on the similar level in 2024.
As of that date, solely 136 of the 193 Member States had paid their assessments in full. A number of contributors, together with the USA, China, Russia and Mexico had but to finish their funds.
Reflecting fiscal realities
The revised 2026 programme funds displays each fiscal realities and the UN80 Initiative a wide-ranging reform effort to make the Secretariat extra agile, resilient and cost-efficient.
Proposed efficiencies embrace consolidating payroll right into a single world crew, relocating features to lower-cost responsibility stations, and creating widespread administrative platforms in New York and Bangkok.
Key priorities stay, regardless of the cuts: 37 Particular Political Missions will proceed operations, the Resident Coordinator System will probably be funded at $53 million, and the Peacebuilding Fund at $50 million.
The Workplace of the Excessive Commissioner for Human Rights (OHCHR) will increase regional places of work in Addis Ababa, Bangkok, Beirut, Dakar, Panama Metropolis, Pretoria and Vienna.
What occurs subsequent?
Over the approaching weeks, the Fifth Committee will focus on the proposal with heads of UN Secretariat departments and senior programme managers.
The Committee will then current its report with suggestions to the Common Meeting plenary, with ultimate approval of the UN funds anticipated by the top of December.
Mr. Guterres additionally famous the report on enhancing the monetary scenario, which proposes a mechanism to droop credit score returns each time liquidity shortfalls threaten full funds implementation of the next yr.
“The Membership didn’t attain a call, and the report was deferred to this session. Failure to succeed in an settlement on addressing the deteriorating liquidity scenario may jeopardize essential parts of our programme of labor,” Mr. Guterres stated.