{"id":305447,"date":"2025-10-20T12:00:53","date_gmt":"2025-10-20T11:00:53","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=305447"},"modified":"2025-10-19T06:35:25","modified_gmt":"2025-10-19T05:35:25","slug":"un-faces-race-to-bankruptcy-as-guterres-unveils-sharply-reduced-2026-budget","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2025\/10\/un-faces-race-to-bankruptcy-as-guterres-unveils-sharply-reduced-2026-budget\/","title":{"rendered":"UN Faces \u2018Race to Bankruptcy\u2019 as Guterres Unveils Sharply Reduced 2026 Budget"},"content":{"rendered":"<div id=\"attachment_305448\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2025\/10\/un-headquarters-new-york.jpg\" ><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-305448\" class=\"wp-image-305448\" src=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2025\/10\/un-headquarters-new-york-1024x464.jpg\" alt=\"\" width=\"600\" height=\"272\" srcset=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2025\/10\/un-headquarters-new-york-1024x464.jpg 1024w, https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2025\/10\/un-headquarters-new-york-300x136.jpg 300w, https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2025\/10\/un-headquarters-new-york-768x348.jpg 768w, https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2025\/10\/un-headquarters-new-york.jpg 1170w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><p id=\"caption-attachment-305448\" class=\"wp-caption-text\">The Secretariat building with flags of Member States in the foreground, at UN Headquarters in New York.\u00a0 UN News\/Vibhu Mishra<\/p><\/div>\n<div class=\"views-field views-field-field-news-story-lead\">\n<div class=\"field-content\">\n<blockquote><p>17 Oct 2025 &#8211;<em> The United Nations faces a \u201crace to bankruptcy\u201d unless Member States pay their dues in full and on time, Secretary-General Ant\u00f3nio Guterres warned today, presenting a sharply reduced $3.238 billion regular budget for 2026.<\/em><\/p><\/blockquote>\n<div id=\"block-views-block-content-fields-block-body\" class=\"views-element-container block block-views block-views-block-content-fields-block-body\">\n<div class=\"block-content block__content\">\n<div>\n<div class=\"view view-content-fields view-id-content_fields view-display-id-block_body js-view-dom-id-9f4d2d5ca0843c5f645344d183f64b7e1fdd86d765dffa8fed8a72b5430b3132\">\n<div class=\"view-content\">\n<div class=\"views-row\">\n<div class=\"views-field views-field-field-news-story\">\n<div class=\"field-content\">\n<div class=\"paragraph paragraph--type--one-column-text paragraph--view-mode--default\">\n<div class=\"_none\">\n<div class=\"w-100\">\n<div class=\"layout row layout-builder__layout\">\n<div class=\"col-12\">\n<div class=\"_none block block-layout-builder block-field-block-paragraph-one-column-text-field-text-column\">\n<div class=\"block-content block__content\">\n<div class=\"clearfix text-formatted field field--name-field-text-column field--type-text-long field--label-hidden field__item\">\n<p>The <a href=\"https:\/\/docs.un.org\/en\/A\/80\/400\"  target=\"_blank\" rel=\"noopener\" data-entity-type=\"external\">revised proposal<\/a> marks a significant drop from his <a href=\"https:\/\/docs.un.org\/en\/A\/80\/6(Introduction)\"  target=\"_blank\" rel=\"noopener\" data-entity-type=\"external\">original ask for next year of $3.715 billion<\/a> and is 15.1 per cent below the <a target=\"_blank\" href=\"https:\/\/docs.un.org\/en\/A\/80\/6(Introduction)\"  data-entity-type=\"external\">2025 approved appropriation<\/a>.<\/p>\n<p>Speaking to the <a target=\"_blank\" href=\"https:\/\/news.un.org\/en\/story\/2019\/01\/1029982\"  data-entity-type=\"external\">Fifth Committee<\/a> of the General Assembly \u2013 which handles UN finances and administration \u2013 Mr. Guterres described a deeply precarious outlook, with high arrears, delayed contributions and the \u201creturn of credits\u201d threatening to wipe out liquidity and undermine core operations.<\/p>\n<h2>Staff cuts<\/h2>\n<p>The revised budget also reduces staffing from the original 2026 proposal funding 13,809 posts (10,667 regular posts plus 3,142 Special Political Mission posts) to 11,594 posts \u2013 <strong>an 18.8 per cent cut compared with 2025<\/strong>.<\/p>\n<p>These reductions target larger departments and administrative functions, while protecting programmes that directly serve Member States \u2013 particularly Least Developed Countries, Landlocked Developing Countries, small island developing States, and advocacy for Africa\u2019s development.<\/p>\n<p>The regular budget, funded through mandatory assessed contributions from Member States, covers the core programmes and operations of the UN Secretariat.<\/p>\n<p>In addition, the UN has a budget specific to peacekeeping operations on a 1 July to 30 June cycle \u2013 while the regular budget operates according to the calendar year.<\/p>\n<div class=\"align-right context-un_news_large_credit type-twitter media media--type-twitter media--view-mode-un-news-large-credit\">\n<div class=\"field field--name-field-media-twitter field--type-string field--label-visually_hidden\">\n<div class=\"field__label visually-hidden\"><\/div>\n<div class=\"field__item\">\n<div class=\"twitter-tweet twitter-tweet-rendered\"><iframe id=\"twitter-widget-0\" class=\"\" title=\"X Post\" src=\"https:\/\/platform.twitter.com\/embed\/Tweet.html?creatorScreenName=UN_News_Centre&amp;dnt=false&amp;embedId=twitter-widget-0&amp;features=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%3D%3D&amp;frame=false&amp;hideCard=false&amp;hideThread=false&amp;id=1979232928610599131&amp;lang=en&amp;origin=https%3A%2F%2Fnews.un.org%2Fen%2Fstory%2F2025%2F10%2F1166128&amp;sessionId=57c846bca6558fb186c69046cb9737288ed9b92d&amp;siteScreenName=UN_News_Centre&amp;theme=light&amp;widgetsVersion=2615f7e52b7e0%3A1702314776716&amp;width=550px\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-tweet-id=\"1979232928610599131\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2>Runaway liquidity crisis<\/h2>\n<p>The UN chief warned that the current liquidity crisis has <strong>serious implications beyond next year, into 2027<\/strong>.<\/p>\n<p>High arrears at the end of last year, <strong>totalling $760 million<\/strong>, coupled with <strong>a requirement to return $300 million in credits<\/strong> to Member States at the start of 2026, removes nearly 10 per cent of the budget from available cash.<\/p>\n<p>\u201c<strong>Any delays in collections early in the year will force us to reduce spending even more<\/strong>&#8230;and then potentially face the prospect of returning $600 million in 2027, or about 20 per cent of the budget,\u201d he said.<\/p>\n<p>\u201c<strong>That means a race to bankruptcy,<\/strong>\u201d he added, reiterating the urgent need to reduce arrears and suspend the return of credits.<\/p>\n<p>Earlier measures to limit spending gave only temporary respite.<\/p>\n<p><strong>The UN entered 2025 with a $135 million deficit<\/strong> and by the end of September had collected only 66.2 per cent of the year\u2019s assessments, down from 78.1 per cent at the same point in 2024.<\/p>\n<p>As of that date, only 136 of the 193 Member States had paid their assessments in full. Several contributors, including the United States, China, Russia and Mexico had yet to complete their payments.<\/p>\n<h2>Reflecting fiscal realities<\/h2>\n<p>The revised 2026 programme budget reflects both fiscal realities and the UN80 Initiative a wide-ranging reform effort to make the Secretariat more agile, resilient and cost-efficient.<\/p>\n<p>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.<\/p>\n<p>Key priorities remain, despite the cuts: 37 Special Political Missions will continue operations, the Resident Coordinator System will be funded at $53 million, and the Peacebuilding Fund at $50 million.<\/p>\n<p>The Office of the High Commissioner for Human Rights (<a href=\"http:\/\/www.ohchr.org\/EN\/pages\/home.aspx\" class=\"ext\" title=\"(opens in a new window)\"  target=\"_blank\" rel=\"noopener noreferrer\" data-extlink=\"\">OHCHR<\/a>) will expand regional offices in Addis Ababa, Bangkok, Beirut, Dakar, Panama City, Pretoria and Vienna.<\/p>\n<h2>What happens next?<\/h2>\n<p>Over the coming weeks, the Fifth Committee will discuss the proposal with heads of UN Secretariat departments and senior programme managers.<\/p>\n<p>The Committee will then present its report with recommendations to the General Assembly plenary, with <strong>final approval of the UN budget expected by the end of December<\/strong>.<\/p>\n<p>Mr. Guterres also noted the <a href=\"https:\/\/www.un.org\/en\/ga\/contributions\/financial.shtml\"  target=\"_blank\" rel=\"noopener\" data-entity-type=\"external\">report on improving the financial situation<\/a>, which <strong>proposes a mechanism to suspend credit returns<\/strong> whenever liquidity shortfalls threaten full budget implementation of the following year.<\/p>\n<p>\u201cThe Membership did not reach a decision, and the report was deferred to this session. Failure to reach an agreement on addressing the deteriorating liquidity situation could jeopardize critical elements of our programme of work,\u201d Mr. Guterres said.<\/p>\n<p><a target=\"_blank\" href=\"https:\/\/news.un.org\/en\/story\/2025\/10\/1166128\" >Go to Original &#8211; news.un.org<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>17 Oct 2025 &#8211; The United Nations faces a \u201crace to bankruptcy\u201d unless Member States pay their dues in full and on time, Secretary-General Ant\u00f3nio Guterres warned today, presenting a sharply reduced $3.238 billion regular budget for 2026.<\/p>\n","protected":false},"author":4,"featured_media":305448,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[82],"tags":[1036,124],"class_list":["post-305447","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-united-nations","tag-antonio-guterres","tag-united-nations"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/305447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=305447"}],"version-history":[{"count":1,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/305447\/revisions"}],"predecessor-version":[{"id":305449,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/305447\/revisions\/305449"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media\/305448"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=305447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=305447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=305447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}