UN сhief proposes major budget cuts amid deepening cash crisis

United Nations Secretary-General António Guterres has formally proposed slashing the UN’s core budget for 2026 by $577 million and cutting more than 18% of staff positions, as the world body confronts one of its most severe financial crunches in decades.

Addressing the UN General Assembly’s budget committee on December 1, Guterres warned that the organisation’s liquidity “remains fragile,” citing ballooning arrears, driven largely by unpaid US contributions, as the core cause of the crisis, Reuters writes. 

"We ended 2024 with $760 million in arrears, of which $709 million is still outstanding from 2024. We have also not received $877 million of 2025 dues and so thus, arrears now stand at $1,586 million,” he told member states.

Guterres unveiled a proposed 2026 core budget of $3.238 billion, marking a 15% reduction from the current year. The core budget covers political, humanitarian, economic, social affairs, disarmament, and communications work. Most UN agencies and programs rely on voluntary contributions and are not part of the core budget.

"Liquidity remains fragile, and this challenge will persist regardless of the final budget approved by the General Assembly – given the unacceptable volume of arrears," Guterres cautioned.

The United States, which pays the UN’s maximum assessed rate of 22%, remains the organisation’s largest financial contributor. However, US President Donald Trump has repeatedly criticised the UN, saying it has “great potential” but is “not fulfilling that,” and has pushed for sharp cuts to US funding.

In response to the mounting crisis, Guterres launched a reform initiative in March, dubbed UN80, aimed at improving efficiency and reducing costs ahead of the UN’s 80th anniversary.

The financial strain has already affected UN peacekeeping, which is funded through a separate budget. In October, senior officials warned that a quarter of peacekeeping personnel across nine missions would be cut due to funding shortfalls and uncertainty over future US payments.

The General Assembly is expected to debate the proposed budget in the coming weeks.

By Sabina Mammadli