António Guterres told the Fifth Committee THE The UN faces its most fragile cash situation in yearsdespite the strong reductions already planned next year’s budget plans.
“Liquidity remains fragile and this challenge will persist regardless of the final approved budget,” he said. saidby designating the “unacceptable volume of arrears” owed by Member States.
The UN ended 2024 with $760 million in unpaid contributions, most still unpaid, and has yet to receive $877 million in contributions due for 2025 – bringing total arrears to approximately $1.586 billion.
With less than five weeks remaining in the year, only 145 of the 193 UN member states have paid their dues in full for 2025.
Major contributors such as the United States and Russia have yet to pay what they owe, although China paid its contribution in full on October 29.
“I have repeatedly called on Member States to pay their contributions in full and on time,” the Secretary-General said, warning that cash shortfalls are forcing the organization to operate well below approved budget levels.
Strong spending cuts are already planned
The warning comes as delegations review revised UN regular budget estimates for 2026, which already reflect deep structural cuts under the UN80 reform initiative – a system-wide efficiency drive to modernize operations and reduce costs.
According to the revised proposal, the UN regular budget for 2026 would be $3.238 billion, a reduction of $577 million – or 15.1 percent – compared to 2025. Some 2,681 positions would be eliminateda reduction of 18.8 percent from current levels.
Special political missions would also face cuts of more than 21 percent compared to 2025 levels, largely due to mission closures and workforce rationalization.
Consolidated functions, outsourced jobs
As part of the savings campaign, the UN plans to consolidate payroll processing in a single global team spread across three duty stations and create shared administrative centers starting with New York and Bangkok.
The Secretariat also examines functions that can be moved to lower cost locations. Since 2017, lease terminations in New York have already saved $126 million, and an additional $24.5 million per year is expected to be saved through additional closures by 2028.
The plan includes one-time separation and relocation costs of $5.4 million as voluntary separation programs are used to limit involuntary job losses.
Delegations intervene
The revised estimates were reviewed by the Advisory Committee on Administrative and Budgetary Questions (CCAQB) and are now before the Fifth Committee for negotiations for the approval of the end-of-year budget.
ACABQ President Juliana Gaspar Ruas said the body welcomed the reform push, warning that the revised estimates had been prepared under tight deadlines, limiting ACABQ’s ability to fully assess the rationale for some proposed reductions. While supporting consolidation and efficiency efforts, she also flagged inconsistent methodologies across departments and called for clearer criteria for relocating staff.
Member States welcomed the Secretary-General’s efforts to present the revised estimates, recognized the Organization’s ongoing liquidity challenges, and expressed support for a stronger and more agile United Nations.
Several delegations, however, echoed concerns about the tight schedule, warning that the late arrival of key documents hampers a thorough review. Some diplomats have warned that the proposed cuts would hit junior and general service staff more than senior positions, threatening both geographic balance and a rejuvenating workforce.
Others have warned that the proposed staff cuts appear uneven across the UN’s three pillars, with proportionately greater reductions in development-related programs.
The Secretary-General said he was “sincerely concerned” by this concern. He insisted that, generally speaking, the development pillar actually faces the smallest proportional reduction, with Africa-related programs largely protected and the biggest cuts falling on support and back-office functions rather than front-line delivery.
“Our commitment to development is absolutely fundamental and our commitment to the African continent is absolutely fundamental,” he said.
Final approval will require approval from the full General Assembly later this month.
Cash flow crisis is already affecting operations
Despite the planned cuts, Secretary-General Guterres said the UN had already been forced to underspend in 2025 because cash was simply not available.
“The vacant positions do not correspond to a strategic priority,” he said, “but simply by the fact that people left and we don’t have the money to pay for the replacement.»
To protect liquidity, the UN has proposed temporarily suspending the return of budget credits to countries – essentially delaying repayments until liquidity levels stabilize.
“It’s difficult to return money because we didn’t receive it,“, Mr. Guterres told the committee.
He warned that unless payments improve, financial stress will continue to hurt operations, regardless of the reduction in the approved budget.
Publicado anteriormente en Almouwatin.
