HomeWorldUN faces budget crisis as major dues remain unpaid

UN faces budget crisis as major dues remain unpaid

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The United Nations is experiencing a critical financial shortfall, with billions in unpaid contributions from member states, Secretary-General António Guterres revealed during a budget briefing in New York on Monday.

Speaking to UN Member States, Guterres urged urgent reforms within the organization to address funding challenges and boost operational efficiency. He emphasized that the growing financial pressure is occurring at a time when the UN’s mission is more vital than ever.

According to figures presented to the UN General Assembly’s Fifth Committee by the UN Controller, just $1.8 billion has been received out of the $3.5 billion required for the organization’s 2025 regular budget—leaving a deficit of nearly half.

As of April 30, the United States owed approximately $1.5 billion. Other top debtors included China ($597 million), Russia ($72 million), Saudi Arabia ($42 million), Mexico ($38 million), and Venezuela ($38 million), while other member nations owed an additional $137 million.

The financial strain is also reflected in peacekeeping operations. Including back payments, the total unpaid contributions in that area reached $2.7 billion. For the UN’s international tribunals, outstanding dues stood at $79 million.

“These are difficult times, but they also present a unique opportunity to make bold changes,” Guterres stated. “The challenges we face make the United Nations’ work more important than ever.”

He announced plans for a comprehensive overhaul of the UN’s systems, with cost-cutting measures that include eliminating duplication of functions and possibly reducing staff in some departments by as much as 20 percent. Departments overseeing peacekeeping and political affairs are expected to be among those affected.

Further adjustments are being explored, such as relocating some operations from expensive headquarters like New York and Geneva to more cost-effective regions. While Guterres acknowledged there may be one-time expenses involved—like relocation costs and staff severance—he said long-term savings would outweigh these.

A preliminary internal audit has identified over 3,600 separate mandates within the UN Secretariat. A full analysis is underway to streamline these operations and reduce unnecessary expenditures.

The proposed changes will begin to appear in the 2026 revised budget, with a more detailed and comprehensive reform plan expected in 2027.

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