UN CHIEF WARNS OF FINANCIAL CRISIS, PUSHES FOR REFORMS AMID MASSIVE FUNDING SHORTFALL
The United Nations is facing a severe financial crisis that threatens the functionality of its global mission, Secretary-General António Guterres warned on Monday May 12 during a briefing with Member States in New York. Calling the situation “dire,” Guterres revealed a shortfall of nearly 50% in the organization’s 2025 regular budget, with only $1.8 billion received against a required $3.5 billion. The United States alone owes $1.5 billion, followed by China ($597 million), and Russia ($72 million).
The UN peacekeeping budget is also in peril, with $2.7 billion in unpaid assessments, and a further $79 million owed to International Tribunals. Guterres stressed that these financial strains come at a time of growing global instability, making the UN’s mission more critical than ever. He proposed sweeping structural reforms aimed at reducing bureaucracy, cutting costs, and modernizing operations across departments, including the possible relocation of staff to lower-cost regions and a 20% staff reduction in peacekeeping and political affairs.
Guterres said while structural reforms are vital for long-term sustainability, the liquidity crisis is primarily due to member states failing to pay dues on time. The reforms, he said, would be part of the UN80 Initiative—a roadmap to increase efficiency and review how the organization’s 3,600 unique mandates are implemented. A final blueprint for the 2026 budget will be unveiled in September 2025, with further reforms expected in 2027.
