General Secretary, António Guterres has presented a revised UN budget for 2026, marking a sharp reduction from his original request of $3.715 billion. The new figure represents a 15.1% decrease compared to the 2025 approved budget, reflecting severe financial strain due to mounting arrears and delayed contributions from Member States.
Major Reduction and Staff Cuts
The proposal includes an 18.8% cut in staffing, reducing the number of funded posts from 13,809 to 11,594. These cuts will primarily affect administrative and larger departments while safeguarding programmes that directly support Least Developed Countries, Landlocked Developing Countries, small island developing States, and Africa’s development initiatives.
Despite the reductions, the plan maintains funding for 37 Special Political Missions, the Resident Coordinator System ($53 million), and the Peacebuilding Fund ($50 million). The Office of the High Commissioner for Human Rights (OHCHR) will continue expanding its regional presence in key cities such as Addis Ababa, Bangkok, Beirut, Dakar, Panama City, Pretoria, and Vienna.
A Warning
Guterres described the UN’s financial situation as a “race to bankruptcy”. The $760 million in arrears and a requirement to return $300 million in credits to Member States at the start of 2026 are key components. These factors, combined with slow payment rates, threaten to drain nearly 10% of available cash.
By September 2025, the UN had collected only 66.2% of Member State contributions, down from 78.1% the previous year. With major contributors such as the United States, China, Russia, and Mexico still behind on payments. Guterres urged Member States to reduce arrears and suspend the return of credits to prevent further destabilization.
Reform and Next Steps
The revised budget aligns with the UN80 Initiative. A reform effort aimed at improving efficiency by centralizing payroll, relocating functions to lower-cost offices, and creating shared administrative hubs in New York and Bangkok.
In the coming weeks, the Fifth Committee will discuss the proposal with UN officials before submitting recommendations to the General Assembly. They are expected to give final approval by the end of December.
Guterres emphasized that without a collective decision to address the liquidity crisis, essential elements of the UN’s work could be jeopardized. Underscoring the urgency for financial reform and renewed commitment from Member States.
Reference
Mishra, V. (2025, October 20). UN faces ‘race to bankruptcy’ as Guterres unveils sharply reduced 2026 budget. UN News. https://news.un.org/en/story/2025/10/1166128