UN Proposes Annual Budget of $3.3 Billion

United Nations Secretary-General António Guterres has said that the need for the global organization is greater than ever amid the growing impacts of climate change, the artificial intelligence revolution, wars and spreading hunger. Presenting the UN’s proposed programme budget of $3.3 billion for next year, Guterres said the organization was facing an extraordinary range of challenges. Geopolitical divisions are deepening, armed conflicts continue in various regions, humanitarian needs are rising sharply, international law is being violated, the climate crisis is affecting every continent, and artificial intelligence is reshaping economies and societies. Achieving the Sustainable Development Goals, which aim to ensure that no one is left behind, is becoming increasingly difficult. In an era of uncertainty and growing divisions, the need for and importance of the United Nations have increased, he said.

Progress Under the ‘UN80’ Initiative

The Secretary-General was addressing the Fifth Committee of the UN General Assembly in New York, which oversees the organization’s administrative and budgetary affairs. He reminded the committee that more than a year had passed since the launch of the “UN80” initiative, aimed at reforming the United Nations’ institutional structure. The far-reaching reform process seeks to make the Secretariat more efficient, effective and better equipped to meet the needs of a rapidly changing world. Reviewing progress under the initiative, Guterres said the Secretariat had moved beyond merely proposing changes and had begun implementing them. Key achievements include:

• ·         The number of underrepresented member states decreased from 28 to 26 between August 2024 and August 2026.
• ·         Gender parity has been achieved among internationally recruited staff.
• ·         Payroll operations have been consolidated.
• ·         The first phase of shared administrative platforms has been launched in New York and Bangkok.
• ·         Certain functions and responsibilities of UN departments have been relocated to offices in lower-cost locations.
• ·         The Secretariat has absorbed a reduction of 3,116 posts from positions authorized under the regular budget into its administrative structure.

The Secretary-General said the impact on employees had been considerably smaller than anticipated, owing to voluntary early departures and the reassignment of staff to other responsibilities. This was largely because planning had begun a year and a half earlier in anticipation of expected financial constraints.

Next Phase of Reforms

Guterres proposed relocating additional positions and responsibilities across 12 UN entities in 2027. Most of these relocations are proposed to take place in Nairobi, the capital of Kenya. He also proposed eliminating certain senior-level positions, downgrading 14 senior posts and expanding shared administrative platforms to Geneva, Nairobi, Vienna and Addis Ababa. The Secretary-General noted that, for the first time, the proposed budget had incorporated anticipated changes into its expenditure estimates from the outset.

Concerns Over a Financial Crisis

António Guterres warned that cost-cutting and improvements in administrative efficiency alone would not be enough to prevent the organization’s financial foundations from becoming unstable. Member states must fulfil their financial obligations under the UN Charter and make their payments on time, he said. The organization needs stable and predictable financial resources to effectively carry out the responsibilities approved by its own member states.