In his speech to the Fifth Committee of the General Assembly (which is responsible for UN finances and administration), Guterres described a deeply precarious picture, with high arrears, delayed contributions and “repayment of credits” that threaten to deplete liquidity and undermine core operations.
Staff cuts
The revised budget also reduces staffing from the original 2026 proposal that funded 13,809 positions (10,667 regular positions plus 3,142 Special Political Mission positions) to 11,594 positions. a cut of 18.8 percent 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 promoting African development.
The regular budget, financed by mandatory contributions from Member States, covers the core programs and operations of the United Nations Secretariat.
Additionally, the UN has a specific budget for peacekeeping operations on a cycle from July 1 to June 30, while the regular budget operates on a calendar year basis.
Runaway liquidity crisis
The UN chief warned that the current liquidity crisis has Serious implications beyond next year, until 2027..
High arrears at the end of last year, for a total of 760 million dollarsalong with a requirement to return $300 million in credits to Member States in early 2026, removes almost 10 percent of the budget from available cash.
“Any delay in collections at the beginning of 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 percent of the budget,” he said.
“That means a race to bankruptcy,he added, reiterating the urgent need to reduce arrears and suspend the repayment of credits.
Previous measures to limit spending provided only temporary respite.
The UN entered 2025 with a deficit of 135 million dollars and by the end of September it had collected only 66.2 percent of the year’s dues, down from 78.1 percent at the same time in 2024.
Until that date, only 136 of the 193 Member States had paid their contributions in full. Several taxpayers, including the United States, China, Russia and Mexico, had yet to complete their payments.
Reflect fiscal realities
The revised 2026 program budget reflects both fiscal realities and the UN80 Initiative, a wide-ranging reform effort to make the Secretariat more agile, resilient and cost-effective.
Proposed efficiencies include consolidating payroll into a single global team, relocating functions to lower-cost duty stations, and creating common administrative platforms in New York and Bangkok.
The key priorities remain, despite the cuts: 37 Special Political Missions will continue to operate, the Resident Coordinator System will receive funding of $53 million and the Peacebuilding Fund of $50 million.
The Office of the High Commissioner for Human Rights (OHCHR) will expand its regional offices in Addis Ababa, Bangkok, Beirut, Dakar, Panama City, Pretoria and Vienna.
What happens next?
Over the coming weeks, the Fifth Committee will discuss the proposal with heads of departments of the United Nations Secretariat and senior program managers.
The Committee will then present its report with recommendations to the plenary of the General Assembly, with final approval of the UN budget scheduled for the end of December.
Guterres also highlighted the report on improving the financial situation, which proposes a mechanism to suspend credit repayments whenever liquidity deficits threaten full budget execution for the following year.
“Members did not reach a decision and the report was deferred until this session. Failure to reach an agreement to address the deteriorating liquidity situation could jeopardize critical elements of our work program,” Guterres said.