Resuming Session ‘Under Considerable Strain’ of Ongoing UN Liquidity Crisis, Fifth Committee Considers Proposed $5.23 Billion Peacekeeping Budget
The Fifth Committee (Administrative and Budgetary) opened its May session today with Member States focused on the Secretary-General’s proposed $5.23 billion budget for peacekeeping missions — a 7.5 per cent reduction from the previous period — and the United Nations ongoing liquidity crisis.
The approved resources would cover the 12-month peacekeeping budget cycle from 1 July 2026 to 30 June 2027.
“We are entering this resumed session under considerable strains,” said Committee Chair Zsuzsanna Horváth (Hungary) in her opening remarks, citing the Organization’s dire financial situation. “The margin for delay is very limited,” she warned, adding that “expectations placed on the United Nations — especially in the area of peacekeeping — have not diminished”.
Noting differing Member State positions on issues including the scale and direction of peacekeeping, budget levels, performance, accountability and financial discipline, she said these were legitimate gaps but risk slowing progress. She therefore called for a pragmatic and realistic approach.
Discipline, Flexibility Key amid Demanding Agenda, Narrow Time Window
Despite “a demanding agenda and a narrow window”, she expressed hope that credible and timely outcomes remain achievable with “discipline, flexibility and a shared sense of responsibility”.
The Fifth Committee is the General Assembly’s subsidiary organ responsible for reviewing and recommending decisions on the Organization’s finances, staffing, management and administrative policy. It meets in three parts each year: the main session in the fall, generally focused on the regular programme budget; the first resumed session typically in March, which addresses outstanding administrative and budgetary matters; and the second resumed session, held in May, primarily devoted to the financing and management of UN peacekeeping operations.
In addition to peacekeeping issues, this session will take up proposed changes to the Organization’s Financial Regulations and Rules aimed at addressing the recurrent liquidity crisis — the agenda item postponed from the first resumed session.
As today’s meeting began, Member States positioned themselves around how to manage reform, liquidity and efficiency without undermining operations in the field.
United States Urges Better Value for Money; Others Object to Excessive, Disproportionate Reductions
The representative of the United States welcomed the Secretary‑General’s proposed reduction in the peacekeeping budget as “another meaningful step forward”. This, together with reforms adopted last December through a slimmed‑down 2026 regular budget, moves the Organization towards “a UN that is fit for purpose”. However, he cautioned that “incremental change is not enough”, stressing the need for “structural efficiencies that endure beyond a single budget cycle”.
Washington, D.C., he said, approaches the session with “a simple principle”: peacekeeping must deliver “real value” as “every dollar entrusted to this organization carries the weight of our taxpayers’ expectations”. That requires clear and achievable mandates, right‑sized missions and resources aligned with performance, including rationalizing headquarters’ staffing and support structures.
Japan’s delegate noted that the Committee’s work enabled a reduction of the proposed budget and helped overcome financial constraints despite the establishment of a new mission during that time. “Our goal in this session”, she added, “is to ensure that the appropriate level of resources is approved and allocated to where it is most needed to support critical activities on the ground.” Looking forward to the submission of the comprehensive review of peacekeeping operations in the context of UN80 reform, she said that this review can provide “fundamental perspectives for the coming discussions”.
The Russian Federation’s representative, noting that UN80 was initially not applied to peacekeeping, voiced concern that some missions have faced “disproportionate and excessive reductions”. He argued that further savings “could be justified” only if they do not undermine Security Council–mandated tasks or reduce operational effectiveness.
The representative of the United Kingdom welcomed the 7.5 per cent reduction in the peacekeeping budget and stressed the need to ensure “the right people are in the right places with the resources they need to deliver”. However, she cautioned that “liquidity pressures alone must not become the primary driver of reform”, warning that “with less cash available, the UN cannot fully uphold its obligations to the three pillars of the Charter”.
Solution to Chronic Delays, Shortfalls in Mandatory Payments: Everyone Pays on Time, Change Rules to Allow UN to Keep Unspent Funds
Member States also tackled chronic delays and shortfalls in the payment of mandatory contributions, which have pushed the United Nations into a precarious financial position. In a stark warning earlier this year, Secretary-General António Guterres cautioned Member States that the Organization could run out of cash as early as July, stressing their obligation to pay in full and on time.
Closely linked to the liquidity crisis is the issue of credit returns — a technical but consequential mechanism that, if left unchanged, could further erode the Organization’s cash position. Under the current rules, the Secretariat is required to return unspent funds to Member States as credits against future assessments, even when underspending results from late contributions or from funds that were assessed but never actually received.
“Member States must either agree to overhaul our financial rules — or accept the very real prospect of the financial collapse of our Organization,” said Norway’s delegate, citing the Secretary-General’s words. The current financial rules — where the Organization must credit Member States for money it has never received — cannot be maintained, he stressed, as “they force the Organization into a financial ‘death spiral’”.
“The most direct and effective way to solve the liquidity crisis” is for all Member States — “in particular, the largest contributor” — to pay their assessed and peacekeeping contributions in full, said China’s representative. He rejected the proposed collection-based credit return method as “neither fair nor reasonable”, warning that it would not encourage Member States to pay their contributions “in full and without conditions”.
Stressing that payment of contributions is a financial obligation every Member State must fulfil, he said: “It is mandatory and non-negotiable”. No conditions should be attached to payment, nor should it be used to obstruct other countries’ contributions to the United Nations, he added, pledging that China — as the second-largest contributor to peacekeeping assessments and a major troop-contributing country — will participate constructively in consultations during the session.
Mexico’s representative recalled that her delegation has advanced initiatives in previous sessions to suspend the return of unspent balances. Returning these balances, she pointed out, can create a “perverse incentive, which can foster arrears or even non-payment”. However, noting that these previous proposals were not accepted, she said that her delegation will prioritize amending the Financial Regulations and Rules this session to address this issue. She further noted Mexico’s willingness to consider alternative suggestions to resolve this situation, including “different methods for calculating the return of appropriations”.
The representative of Uruguay, speaking for the Group of 77 and China, reiterated “its deep concern over the significant arrears of the single largest contributor”, which are “the root cause of the Organization’s liquidity crisis”. Addressing this situation requires a collective commitment by all Member States to fulfil their financial obligations in full, on time and without conditions, particularly “those Member States who — for political reasons — deliberately withhold payments”. Furthermore, “any measures aimed at improving liquidity must preserve mandate delivery, respect intergovernmental oversight and avoid unintended consequences for programme implementation”, he emphasized.
The European Union’s delegate, speaking on behalf of the European Union and European Union member States and aligning countries, said that the bloc will engage constructively on practical and credible measures to strengthen the Organization’s liquidity. Acknowledging “our responsibility to carefully and constructively examine the proposed revisions to the Financial Regulations and Rules, as well as those governing programme planning and the programme aspects of the budget”, she said this work should be taken as a priority.
Urging all Member States to pay their assessed contributions in full and on time, the representative of Canada, speaking also for Australia and New Zealand, declared: They “consistently meet this obligation”. As for proposed modifications to the methodology for calculating credits to be returned, he said that there is “potential for this to provide tangible, near-term relief and to contribute to greater financial stability”.
Djibouti’s representative, speaking for the African Group, urged “timely action by this Committee” to ensure the continuity, effectiveness and efficiencies of peacekeeping operations, “many of which are deployed in Africa”.
Troop- and Police-Contributing Countries Raise Alarm over Continued Delays in Reimbursement
Another focus at today’s meeting was delayed reimbursements to troop- and police-contributing countries — a concern expressed by several developing countries. When reimbursements are delayed, those countries effectively carry the financial burden of peacekeeping. Reimbursement rates should not be determined by liquidity pressures.
Bangladesh and Indonesia were particularly direct on this point, calling for reimbursement rates to reflect validated costs, harsh field conditions, major equipment and self-sustainment needs. The representative of Rwanda said: “A system that depends on the reliability of country contributors must itself be reliable in return.”
Mongolia’s delegate proposed that the rotation changes in coming months need to be better planned and implemented through extensive consultations with troop- and police-contributing countries to mitigate risks.
Crossing-Cutting Issues
Some cross-cutting issues were also discussed.
The Republic of Korea’s delegate stressed that “technology is key to further enhancing efficiency”, encouraging the Secretariat to continue supporting the digital transformation of missions. Agreeing, his counterpart from Israel said peacekeeping must responsibly leverage digital innovation and artificial intelligence (AI) to improve situational awareness, data-driven decision-making, and mandate delivery. For its part, Israel calls for stronger first-aid training, casualty evacuation and tools like telemedicine, alongside expanded mental health and psychosocial support for peacekeepers. The representative of the Dominican Republic highlighted the need to maintain focus on the prevention of sexual exploitation and abuse by peacekeepers, as well as on victim assistance.
Summing it up, Kazakhstan’s representative underlined the need for a “balanced” approach that combines financial discipline with preserving missions’ capacity to effectively implement their mandates. “Budgetary decisions should be guided by operational realities on the ground and remain strictly mandate-driven,” he emphasized.