8 months ago
UN Aims to Fix Budget Rule
The United Nations is trying to change a rule that gives back money to countries if it isn't spent.
This rule was okay when countries paid on time, but now many don't, and the UN is running out of money.
The UN wants to keep this money to avoid going broke, especially because the US, which owes a lot, might not pay.
The UN is already cutting its budget by 15% and fears it could get worse.
They are hoping to make this change before the end of the year.
UN officials propose reforming a rule that credits unspent dues to member states, potentially returning $300 million next year.
The UN faces a 15% budget reduction and a cash crisis due to unpaid dues, primarily from the United States.
Only 148 out of 193 member states have paid their dues by December 15.
Secretary-General Antonio Guterres seeks to suspend the return of credits to avoid a 'race to bankruptcy'.
A decision on the reform is expected before the year-end as part of the 2026 budget talks.
- Who
- UN officials, including Tatiana Valovaya and Antonio Guterres
- What
- Proposal to reform a budget rule that credits unspent dues to member states
- Where
- Geneva, New York
- When
- Decision to be made before year-end as part of 2026 budget talks
- Why
- To avoid a cash crisis and potential bankruptcy due to unpaid dues, primarily from the United States
Key facts
- Budget Reduction
- 15%
- Planned Budget for 2026
- $3.2 billion
- Credited Amount to Members
- $300 million
- Potential Credit in 2027
- $600 million
- Member States Paid by Dec 15
- 148 out of 193
Quotes
Tatiana Valovaya
Director General of the U.N. in Geneva
“The organisation has to return to the member states the money which it hasn’t received, and that could make our situation for the year 2026 even more difficult.”
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Antonio Guterres
U.N. Secretary-General
“That means a race to bankruptcy.”
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Ronny Patz
U.N. finances expert
“We are getting to a point where core functions cannot be performed and that impacts everything that depends on the Secretariat.”
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