New York: Europe and the Arabs

UN Secretary-General António Guterres warned that the organization faces a "race to bankruptcy" unless member states pay their dues in full and on time. This came during his presentation of the organization's reduced 2026 budget, estimated at $3.238 billion. According to the UN Daily News, which added, "This revised budget proposal falls significantly short of the $3.715 billion previously requested by the Secretary-General and is 15.1% below the approved appropriations for 2025."
In his address to the Fifth Committee of the UN General Assembly—which deals with financial and administrative matters—Guterres pointed to increasing arrears, delayed receipt of Member States' contributions, and "reappropriations," which threaten to drain liquidity and undermine the Organization's core operations.
Staff Reductions
The revised budget reduces staffing from the original 2026 proposal, which funded 13,809 posts, to 11,594, an 18.8% reduction compared to 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 development support programs for developing countries. African.
The UN regular budget, funded through assessed contributions from Member States, covers the core programs and operations of the UN Secretariat.
In addition, the UN has a budget for peacekeeping operations, which runs from July 1 to June 30.
Liquidity Crisis
The UN Secretary-General warned that the current financial liquidity crisis has serious repercussions extending beyond next year, into 2027.
The high $760 million in arrears in contributions at the end of last year, combined with the need to return $300 million in appropriations to Member States by the beginning of 2026, is depleting nearly 10% of the budget's available cash.
Guterres said: "Any delay in collecting contributions early in the year will force us to cut spending even further... and then we could face the prospect of returning $600 million in 2027, or about 20% of the budget."
He added: "This means a race to bankruptcy," emphasizing the urgent need to reduce Arrears and Suspension of Reappropriations.
The United Nations began 2025 with a $135 million deficit, and by the end of September, it had received only 66.2% of its assessed contributions for the year, down from 78.1% in the same period in 2024.
To date, only 136 Member States—out of 193—have paid their assessed contributions in full. Several contributors, including the United States, China, Russia, and Mexico, have yet to complete their payments.
Financial Reality
The revised 2026 budget reflects financial realities and the UN80 initiative, a broad reform effort to make the Secretariat more agile and cost-effective.
Proposals include consolidating payroll management under a single global team, relocating posts to lower-cost duty stations, and establishing common administrative platforms in New York and Bangkok.
Key priorities remain, despite the reductions. For example, 37 special political missions will continue to operate, and the resident coordinator system in various countries will be funded by $1.5 billion. $53 million, and the Peacebuilding Fund $50 million.
The Office of the United Nations High Commissioner for Human Rights will expand its regional offices in Addis Ababa, Bangkok, Beirut, Dakar, Panama City, Pretoria, and Vienna.
What's next?
In the coming weeks, the Fifth Committee will discuss the proposal with heads of UN Secretariat departments and senior programme managers.
The Committee will then submit its report and recommendations to the full General Assembly, and final approval of the UN budget is expected by the end of December.