The United Nations, UN, is facing a deepening financial crisis, with unpaid contributions from member states—most notably the United States—creating a budgetary shortfall that threatens the organization’s operations.
UN Secretary-General António Guterres disclosed this during a briefing to Member States in New York on Monday.
According to figures presented by the UN Controller to the General Assembly’s Fifth Committee, only $1.8 billion had been received out of the $3.5 billion assessed for the 2025 regular budget, leaving a deficit of nearly 50 percent.
As of April 30, the U.S. owed approximately $1.5 billion, while China, Russia, Saudi Arabia, Mexico, and Venezuela together owed hundreds of millions more. An additional $137 million is outstanding from other countries.
The peacekeeping budget faces an even larger hole, with a total of $2.7 billion in arrears, and $79 million still owed to international tribunals.
“This is a moment of global peril, but also one of obligation and opportunity,” Guterres stated, emphasizing the urgent need to reform the UN system to be leaner, more efficient, and better prepared to fulfill its mission.
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He announced a series of proposed structural reforms, including staffing cuts, relocation of operations from high-cost cities like New York and Geneva to lower-cost duty stations, and a review of the UN’s more than 3,600 active mandates.
Departments related to political and peacekeeping affairs may face up to 20 percent staff reductions.
While Guterres acknowledged that the restructuring might involve temporary costs such as severance and relocation expenses, he argued that the long-term financial savings were necessary and achievable.
The Secretary-General pointed out that the liquidity crisis could not be resolved by reform alone, noting that the failure of member states to pay dues promptly was the primary cause. However, he believes the reforms could limit the impact of future delays.
Guterres stressed the importance of continued dialogue with member states and UN staff, describing the approach as both professional and humane.
The reforms are tied to the UN80 Initiative, launched in March, which focuses on three pillars: improving efficiency, reviewing mandates, and implementing structural change.
Guterres closed his remarks with a call to action, urging global leaders to strengthen the UN for current and future generations.
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