Antonio Guterres warns UN may go bankrupt
On October 17, UN Secretary-General Antonio Guterres warned the Fifth Committee, which is responsible for administrative and budgetary affairs of the General Assembly, that if member states fail to pay their dues on time and in full, the United Nations will face a "bankruptcy crisis" when submitting the proposed budget for the 2026 fiscal year. This regular budget of $3.238 billion represents a reduction of nearly $500 million from its initial proposal and a 15.1% decrease compared to the approved 2025 budget.
Guterres pointed out that the current financial outlook of the United Nations is "extremely fragile." High levels of arrears, delayed payments, and refunding of credits are threatening the UN's cash flow and weakening its core operational capabilities.
The regular budget of the United Nations is funded by mandatory contributions from member states, mainly used to maintain the core programs and operations of the Secretariat, calculated according to the standard calendar year. In addition, the United Nations also has an independent peacekeeping budget, which operates on a fiscal year from July 1 to June 30 of the following year.
The revised budget plan reduces the original proposal of more than 13,800 positions (including over 10,000 regular positions and more than 3,000 special political mission positions) to less than 11,600, a decrease of 18.8% from 2025.
These cuts are mainly concentrated in large departments and administrative functions, with projects directly serving member states being prioritized, especially those related to the least developed countries, landlocked developing countries, small island developing states, and the Africa Initiative.
Guterres warned that the current liquidity crisis could affect not only next year but also 2027.
By the end of 2024, member states had accumulated arrears of $760 million in dues. At the same time, according to regulations, the United Nations needs to refund $300 million in deductions to member states at the beginning of 2026, which is equivalent to nearly 10% of the budget that cannot be collected. If member states delay payment at the beginning of the year, the United Nations will have to further cut expenses, which means the United Nations may face the risk of refunding $600 million in 2027, equivalent to 20% of the budget.
Guterres emphasized, "This means the United Nations will go bankrupt," and it is necessary to reduce arrears and suspend the refund of deductions.
The revised 2026 proposed program budget reflects the current financial reality and also embodies the reform direction of the UN's 80th anniversary initiative, aiming to enhance the effectiveness of the Secretariat, making it more flexible and resilient.
The proposed efficiency measures include integrating salary payments into a single global team, relocating some functions to low-cost office locations, and establishing a unified administrative platform in New York and Bangkok, among others.
In the coming weeks, the Fifth Committee will discuss the budget with heads of departments and program managers of the Secretariat. Subsequently, the committee will submit a report and recommendations to the General Assembly plenary meeting, and the UN budget is expected to receive final approval by the end of December.
Guterres also mentioned a report on improving the financial situation, which recommends suspending the refund of unused credit notes to member states when funding shortages threaten the execution of the next year's budget. However, member states have not yet reached an agreement on this mechanism, so the report was postponed for consideration at this session.
Guterres emphasized, "If no agreement can be reached on the deteriorating liquidity issues, key UN program initiatives will face serious threats."
Original: www.toutiao.com/article/1846368011755527/
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