INTERNATIONAL: UN Secretary-General António Guterres divulged a strongly contracted budget for 2026, threatening an expanding financial difficulty that compromises the fundamental operations of the United Nations. The new budget—set at US$3.238 billion (S$4.405 billion)—marks a 15.1% drop from the previous year and is even lower than the US$3.715 billion initially proposed for 2025.
“We’re in a precarious state”
Speaking to the UN General Assembly’s Fifth Committee, Guterres did not mince words. The UN, he said, is in a “deeply precarious” financial state, as more countries delay or fall short on paying their dues. By September 2025, the organisation had received only about 66% of its expected contributions—down from over 78% the year before. Only 136 of the UN’s 193 Member States had paid in full. Among those still behind? Major players like the US, China, Russia, and Mexico.
If this trend continues, Guterres warned, the UN could be headed towards what he called a “race to bankruptcy.”
Jobs cut, reforms begin, but priorities remain
To make ends meet, the 2026 budget includes the biggest staffing cuts in recent memory—an 18.8% reduction. That means more than 2,200 funded positions could be eliminated, with the brunt of the cuts falling on administrative and larger departments, yet not everything is on the chopping block.
Guterres made clear that programmes serving the world’s most vulnerable—such as the Least Developed Countries and Small Island Developing States—will be protected.
At the same time, the UN is launching deep reforms under the UN80 Initiative, which aims to reshape the Secretariat into a more efficient and agile body as the organisation approaches its 80th anniversary. Measures include consolidating global payroll, relocating some offices to more affordable cities, and creating joint administrative hubs in New York and Bangkok.
Peacekeeping, human rights, and local missions stay funded
Despite the tight belt, Guterres emphasised that the UN’s core mission isn’t changing. The budget will still support:
- 37 Special Political Missions in conflict zones,
- US$53 million for the Resident Coordinator System, and
- US$50 million for the Peacebuilding Fund.
The Office of the High Commissioner for Human Rights will also grow its global reach, expanding its presence in seven regional hubs, including in Addis Ababa, Bangkok, and Beirut.
Liquidity crisis looms: “We need urgent action”
Beyond budget cuts, the UN faces a much deeper problem: cash flow. By the end of last year, the UN was already $760 million in arrears. On top of that, it must return US$300 million in credits to member states in early 2026—a refund that alone accounts for nearly 10% of the coming year’s budget.
If no action is taken, that number could double by 2027, eating up nearly 20% of the UN’s operational funds. Guterres has pleaded with member states to suspend credit returns during financial emergencies and to commit to paying their dues on time. However, a proposal to formalise such a mechanism failed to gain consensus earlier this year and now awaits further discussion.
Final decision coming soon
The Fifth Committee will review the revised budget and financial proposals in the coming weeks. A final decision is expected by the end of December.
However, Guterres ended his address with a stark reminder: The situation is not just about numbers—it’s about the UN’s ability to function at all.
“Earlier measures to limit spending gave only temporary respite,” he said. “Now, we face deeper structural challenges that can no longer be ignored.”
