WASHINGTON (dpa-AFX) - Presenting a sharply reduced $3.238 billion regular budget for 2026, United Nations Secretary-General Antonio Guterres warned that the global body faces a 'race to bankruptcy' unless Member States pay their dues in full and on time.
The revised proposal marks a significant drop from his original budget for next year of $3.715 billion and is 15.1 per cent below the 2025 approved appropriation.
Speaking to the Fifth Committee of the General Assembly - which handles UN finances and administration - Guterres described a deeply precarious outlook, with high arrears, delayed contributions and the 'return of credits' threatening to wipe out liquidity and undermine core operations.
The revised budget also reduces staffing from the original 2026 proposal funding 13,809 posts to 11,594 posts - an 18.8 per cent cut compared with 2025.
These reductions target larger departments and administrative functions, while protecting programs that directly serve Member States - particularly Least Developed Countries, Landlocked Developing Countries, small island developing States, and advocacy for Africa's development.
The regular budget, funded through mandatory assessed contributions from Member States, covers the core programs and operations of the UN Secretariat.
In addition, the UN has a budget specific to peacekeeping operations on a July 1 to June 30 cycle - while the regular budget operates according to the calendar year.
The UN chief warned that the current liquidity crisis has serious implications beyond next year, into 2027.
High arrears at the end of last year, totalling $760 million, coupled with a requirement to return $300 million in credits to Member States at the start of 2026, removes nearly 10 per cent of the budget from available cash.
'Any delays in collections early in the year will force us to reduce spending even more...and then potentially face the prospect of returning $600 million in 2027, or about 20 per cent of the budget,' he said.
'That means a race to bankruptcy,' he added, reiterating the urgent need to reduce arrears and suspend the return of credits.
The UN entered 2025 with a $135 million deficit and by the end of September had collected only 66.2 per cent of the year's assessments, down from 78.1 per cent at the same point in 2024.
As of that date, only 136 of the 193 Member States had paid their assessments in full. Several contributors, including the United States, China, Russia and Mexico had yet to complete their payments.
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