UN Chief António Guterres Warns Of Unpaid Dues Approaching USD 1.6 Billion As Budget Cuts Deepen

The United Nations is grappling with a precarious financial situation, according to Secretary-General António Guterres. Despite planned budget cuts for next year, the UN's cash flow remains unstable. Guterres highlighted the significant arrears owed by Member States as a major issue. At the end of 2024, unpaid assessments totaled $760 million, with an additional $877 million in contributions for 2025 still outstanding.

As of now, only 145 out of 193 Member States have fully paid their 2025 dues. Key contributors like the United States and Russia have yet to settle their debts. Guterres has consistently urged Member States to pay their contributions promptly to avoid cash shortages that hinder operations below approved budget levels.

The UN is considering revised estimates for its 2026 regular budget amid these financial challenges. The proposed budget stands at $3.238 billion, reflecting a reduction of $577 million or 15.1 percent compared to 2025. This includes cutting 2,681 posts, an 18.8 percent decrease from current levels.

Special political missions are also set to face over 21 percent cuts compared to 2025 due to mission closures and streamlined staffing. To achieve savings, the UN plans to consolidate payroll processing into a global team across three duty stations and establish shared administrative hubs in New York and Bangkok.

The Secretariat is evaluating functions that can be relocated to lower-cost areas. Since 2017, lease terminations in New York have saved $126 million, with an additional $24.5 million expected annually from further closures by 2028.

Concerns Over Staff Reductions

The plan includes one-time separation and relocation costs of $5.4 million through voluntary exit programmes aimed at minimising involuntary job losses. The Advisory Committee on Administrative and Budgetary Questions (ACABQ) has reviewed these revised estimates, which are now under negotiation by the Fifth Committee before year-end budget approval.

Member States praised Guterres for presenting the revised estimates but acknowledged ongoing liquidity challenges while supporting a more agile UN. However, some delegations expressed concerns about the compressed timeline hindering thorough scrutiny due to late document arrivals.

Impact on Development Programmes

Diplomats warned that proposed cuts disproportionately affect junior and general service staff rather than senior positions, potentially impacting geographic balance and workforce rejuvenation. Others noted uneven reductions across the UN's three pillars, with deeper cuts affecting development-related programmes.

Guterres expressed concern about these issues but assured that development programmes face the smallest proportional reduction overall. Africa-related initiatives are largely protected, with significant cuts targeting support and back-office functions instead of frontline delivery.

"Our commitment to development is absolutely fundamental and that our commitment to the African continent is absolutely fundamental," he stated.

The General Assembly must endorse final approval later this month for these proposals to take effect.

With inputs from WAM