The United Nations has announced that it is cutting back on spending, halting new hires, and scaling down certain services as a worsening cash crunch grips the global institution.
On Monday, member states were urged to settle their outstanding contributions, as the escalating financial shortfall threatens the organisation’s ability to deliver on its global responsibilities. The General Assembly’s Fifth Committee convened throughout the day to assess the UN’s financial condition.
Member nations currently owe $2.4 billion in regular budget contributions and an additional $2.7 billion for peacekeeping operations. UN officials warned that the failure to meet these financial obligations could undermine both the institution’s credibility and its capacity to fulfill its mandates.
Switzerland’s delegate, speaking on behalf of Liechtenstein as well, remarked that “Each delay in payment, each hiring freeze, each cancelled service chips away at trust in our ability to deliver.”
Among proposed remedies was the suggestion to permit the UN to retain unspent funds at the end of the fiscal year rather than returning them as credits to member states. Under the current rule, even late-arriving contributions must be refunded if not used by year’s end, limiting the UN’s ability to apply them effectively.
This change, if approved, could help maintain operations, especially at the beginning of the year when funding is often delayed. Delegates also expressed support for the selective use of “special commitments,” which are emergency financial mechanisms intended to bridge gaps caused by slow payments.
Despite these proposals, many delegates, including representatives from Kazakhstan, Norway, and the United Kingdom, stressed that temporary fixes would not address the core issue: delayed or non-payment of dues. Norway advocated for bold reforms to tackle the systemic flaws in the UN’s financial structure.
The European Union highlighted that the crisis poses real operational threats and warned against placing the burden solely on countries that fulfill their obligations on time. Singapore, speaking on behalf of ASEAN, noted that the UN’s liquidity troubles have become a recurring concern. It pointed to ESCAP’s recent office closures and the suspension of travel and hiring as alarming examples.
A particularly pressing issue is that one country, unnamed during the session but widely acknowledged as the United States, is responsible for more than half of the total unpaid dues. Reports suggest that the U.S., under the administration of Donald Trump, is withholding payments due to political disagreements.
Russia called for greater transparency in the UN’s cost-saving measures, insisting that member states should be involved in decision-making processes that affect operations.
Catherine Pollard, the UN’s chief of management, stated that since May 9, only a few countries had made full payments across all budget categories. As of May 19, only 61 nations had fully met their financial commitments to the UN.
The message from Monday’s meeting was unmistakable: without timely and widespread financial support, the UN’s capacity to serve a world in crisis is in jeopardy.
What you should know
The UN is experiencing a severe financial shortfall, prompting service cuts and a hiring freeze. Member states owe billions, and the U.S. is reportedly the largest debtor. Without swift action, the organisation’s global functions could be compromised.
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