“Liquidity remains fragile and this challenge will persist regardless of the final approved budget,” he said, noting the “Unacceptable volume of arrears” owed by Member States.
The UN ended 2024 with $760 million in outstanding contributions, most of which are still outstanding, and has yet to receive $877 million in contributions due in 2025. bringing the total arrears to approximately 1,586 million dollars.
With less than five weeks left in the year, only 145 of the UN’s 193 member states had paid their 2025 dues in full.
Key contributors such as the United States and Russia have yet to pay what they owe, although China paid its full dues on October 29.
“I have repeatedly called on Member States to pay their dues in full and on time,” the Secretary-General said, warning that cash shortfalls are forcing the organization to operate well below approved budget levels.
Deep spending cuts already incorporated
The warning comes as delegations consider revised estimates for the UN’s 2026 regular budget, which already reflect deep structural cuts under the UN80 reform initiative, a system-wide efficiency initiative aimed at modernizing operations and reducing costs.
According to the revised proposal, the The UN regular budget for 2026 would stand at $3,238 million, a reduction of $577 million – or 15.1 percent – compared to 2025. Some 2,681 positions would be eliminateda reduction of 18.8 percent from current levels.
Special political missions would also face cuts of more than 21 percent. compared to 2025 levels, largely due to mission closures and staffing rationalization.
Consolidated functions, relocated jobs
As part of the savings campaign, the UN plans consolidate payroll processing on a single global computer at three destination locations and create shared administrative centers starting in New York and Bangkok.
The Secretariat is also reviewing functions that can be moved to lower cost locations. Since 2017, lease terminations in New York have already saved $126 million, with another $24.5 million a year in savings expected from additional closures by 2028.
The plan includes one-time separation and relocation costs of $5.4 million as voluntary departure programs are used to limit involuntary job losses.
The delegations think
The revised estimates have been reviewed by the Advisory Committee on Administrative and Budgetary Questions (ACABQ) and are now before the Fifth Committee for negotiations ahead of approval of the budget at the end of the year.
CCAAP President Juliana Gaspar Ruas said the body welcomed the reform push, warning that the revised estimates were prepared under strict time constraints, limiting the CCAAP’s ability to fully assess the basis for some proposed cuts. While he supported consolidation and efficiency efforts, he also pointed out uneven methodologies between departments and called for clearer criteria on staff relocations.
Member States praised the efforts of the Secretary-General in presenting the revised estimates, recognized the Organization’s continuing liquidity challenges, and expressed support for a stronger and more agile UN.
However, several delegations echoed concerns about the compressed timeline and warned that the late arrival of key documents is limiting full scrutiny. Some diplomats warned that the proposed cuts fall more heavily on junior and general service staff than on senior positions, threatening both geographic balance and workforce rejuvenation.
Others warned that the proposed staff reductions appear uneven across the three pillars of the UN, with proportionately deeper cuts to development-related programs.
The Secretary-General said he was “sincerely concerned” about that concern. He insisted that overall the development pillar is in fact facing the smallest proportional reduction, with Africa-related programs largely grandfathered in and the biggest cuts falling on support and back-office functions rather than front-line delivery.
“Our commitment to development is absolutely fundamental and our commitment to the African continent is absolutely fundamental,” he said.
Final approval will require the endorsement of the full General Assembly later this month.
The cash crisis is already affecting operations
Despite the planned reductions, Secretary-General Guterres said the UN has already been forced to underspend in 2025 because there is simply no cash available.
“The vacancies do not correspond to a strategic priority,“, he said, “but simply because of the fact that people left and We don’t have the money to pay for the replacement.”
To protect liquidity, the UN has proposed temporarily suspending the return of budget credits to countries, essentially delaying repayments until cash levels stabilize.
“It is difficult to return money because we do not receive it,“Guterres told the committee.
He warned that unless payments improve, financial strain will continue to undermine operations regardless of how small the approved budget is.