Regular Budget Collections Trailing Expectations, UN Controller Tells Fifth Committee, Urging Member States to Expedite Payments amid Worsening Liquidity Crisis
As of 30 April, the United Nations’ regular budget collections have trailed estimates and fallen significantly below last year’s levels, the Organization’s top finance official reported to the Fifth Committee (Administrative and Budgetary) today, urging Member States to expedite their payments and communicate their payment plans promptly.
Today’s semi-annual financial presentation by the Secretariat comes amid a deepening liquidity crisis that is forcing the UN to cut spending, which in turn threatens its ability to implement the mandated programmes.
“As we have said on several occasions in recent years, predictability in the timing and amount of collections is critical for managing the Organization’s cash outflows and planning spending properly and safely without risk of payment default,” said Chandru Ramanathan, UN Controller and Assistant Secretary-General in the Office of Programme Planning, Finance and Budget, stressing that “the financial health of the Organization depends on Member States meeting their financial obligations in full and on time”.
Presenting the Organization’s key financial indicators for 2025, Mr. Ramanathan provided details on three main categories — the regular budget, peacekeeping operations and the international tribunals.
First Quarter Regular Budget Collections at Lowest Level in Seven Years
Monthly regular budget collections continue to fluctuate significantly each year, making it difficult to safely commit funds in time for implementing the budget efficiently and effectively, he reported, noting that first-quarter collections were 42 per cent in 2023, increased to 52 per cent in 2024 and dropped to 40 per cent in 2025 — the lowest in last seven years.
Of the $3.5 billion regular budget assessments for 2025, $276 million more than in 2024, payments received by 30 April totalled $1.8 billion, or about 50.5 per cent. Including $760 million in prior arrears, an unpaid contribution stood at $2.4 billion, up from $1.7 billion from a year earlier, he reported.
“So far in 2025, collections have trailed estimates,” he warned, with 104 of 193 Member States having paid in full, adding: “We are targeting a spending reduction of approximately $600 million until we have certainty that we will have enough cash to meet our obligations through December”.
Unpaid Assessments: United States Owes $1.5 Billion, China $597 Million
According to Chart 9 of the Controller’s presentation, published on the Committee’s website, the United States owes about $1.5 billion in unpaid assessments, China $597 million, the Russian Federation $72 million, Saudi Arabia $42 million, Mexico $38 million and Venezuela $38 million. An additional $137 million is yet to be paid by other Member States.
“The Organization can only solve the liquidity crisis with the support of Member States — meeting their financial obligations in full and in a predictable and timely manner,” he said, drawing attention to the Secretary-General’s new proposals in his report (document A/79/734) to address the ongoing liquidity situation. “Your previous decisions have increased the liquidity for regular budget and peacekeeping operations, but more is needed to prevent cyclical liquidity shortages,” the Controller added.
Cash Shortages Managed by Borrowing from Other Accounts
He went on to explain how the Secretariat previously managed cash shortages by borrowing from other accounts, such as the Working Capital Fund, Special Account, and closed peacekeeping missions and tribunals. These borrowings started to occur in the second half of the year — July in 2019, September in 2020, November in 2021, August in 2023 and September in 2024, he said.
In 2024, heads of entities were provided maximum autonomy in managing their post and non-post budgets but within financial ceilings smaller than their approved budgets, he said. “Each department/entity tried its best to minimize the negative impact on mandate delivery within these constraints,” he observed, adding, however: “Despite the spending restrictions, we had to borrow from the reserves, from the Working Capital Fund in September, from the Special Account in October and from the closed tribunals in November and December.”
Noting a record $607 million in total borrowing in 2024, he said that had the General Assembly not approved the increase in the Working Capital Fund and the use of the surplus cash of closed tribunals, the liquidity situation would have been very dire, forcing even more aggressive spending restrictions.
“Eventually, large collections received late in December allowed us to replenish some of our liquidity reserves and avert a bigger liquidity crisis in 2025,” he added.
Peacekeeping Operations: Unpaid Amount Still High Despite Lower Assessments
Turning to peacekeeping operations, which run on a 1 July to 30 June budget cycle, he said that assessments of $5.2 billion had been issued and $4.6 billion have been received by the end of April 2025. Including prior-period arrears, the unpaid amount totals $2.7 billion — $2.2 billion owed for active missions and $485.4 million for closed missions. The outstanding balance for active missions breaks down to $1.8 billion for the current fiscal year and $374.9 million for prior fiscal periods.
“Unpaid assessments have not gone down despite declining peacekeeping assessments,” he said, adding: “With less than two months remaining in the current fiscal year, the unpaid contribution to assessment percentage is 42.1 per cent. In order to avoid ending the year in a worse financial position than last year, a minimum of about $850 million is needed.”
He went on to emphasize: “Without the prompt and decisive action of Member States to address the historical unpredictability and delays in the receipt of assessed contributions, peacekeeping missions will be unable to effectively implement their mandates.”
According to Chart 15 of the Controller’s presentation, the United States owes $1.53 billion in unpaid assessments, China $587 million, the Russian Federation $123 million, Venezuela $93 million and Ukraine $80 million. An additional $265 million is yet to be paid by other Member States.
Mr. Ramanathan said that the Russian Federation had made a deposit against their contributions payable for peacekeeping operations in late 2024 in a local UN account as they did earlier, but the bank has not yet been able to transfer this amount to the UN bank account in New York.
International Tribunals: Outstanding Contributions at $79 Million as of 30 April
As for the international tribunals, he said that the total contribution outstanding for them as of 30 April was $79 million. This includes amounts outstanding for the International Criminal Tribunal for Rwanda, which was last assessed in 2016, for the International Criminal Tribunal for the Former Yugoslavia, which was last assessed in 2018, and the most recent assessment for the International Residual Mechanism for Criminal Tribunals in 2025.
According to Chart 22 of the Controller’s presentation, the United States owes $32 million in unpaid assessments, the Russian Federation $28 million, China $9 million, Venezuela $2 million, and France $2 million. An additional $6 million is yet to be paid by other Member States.
The final outcome for 2025 will depend on Member States continuing to honour their financial obligations to the tribunals, he said.
In its resolution 76/272, the General Assembly decided that surplus cash in closed tribunals can be used as a last resort for regular budget liquidity, if needed, from January 2023.
“This was helpful in reducing the liquidity constraints during 2023 and instrumental in reducing the impact on regular budget operations during 2024, especially when extra liquidity was needed in the final quarter of the year,” he observed, stating: “Without the ability to use the surplus cash in closed tribunals, the spending reduction target for 2025 would have been 20.6 per cent ($730 million) instead of 17 per cent ($600 million).”