Amid Record High Arrears, UN Struggling to Survive as Organization, Fifth Committee Hears as Speakers Present Proposals to Defer Return of Unspent Funds as Remedy
With its cash reserves rapidly depleting, and long-term financial stability eroding, the United Nations is not only risking its peace and development agenda, it is struggling to survive as an organization, delegates in the Fifth Committee (Administrative and Budgetary) warned today.
The Secretary-General’s latest report on this matter provided sobering updates (document A/80/440/Add.1) — 2025 ended with a new record level of arrears of $1.6 billion, making it necessary to start 2026 with strict cash conservation measures. Targeted spending reductions have been put in place “until the Organization has certainty that it will have enough cash to meet its legal obligations until the end of December”. While payments for peacekeeping troops and formed police units are current for all active missions, payments for contingent-owned equipment are behind by three quarters, and more payments could be delayed if collections do not improve significantly.
Along similar lines, in her biannual briefing on the UN’s financial situation, two weeks ago, Catherine Pollard, Under-Secretary-General for Management Strategy, Policy and Compliance, pointed out that the current cash balance for the United Nations regular budget is “only sufficient to meet legal obligations through the middle of August” — not through December.
Severe Spending Constraints Compromising Peacekeeping Safety, Efficiency
“One Member State continues to account for a disproportionate share of unpaid assessments despite having the capacity to pay,” the representative of Uruguay, speaking on behalf of the Group of 77, said. Regular budget arrears reached approximately $1.57 billion in 2025 and unpaid assessments rose to about $2.8 billion as of 30 April 2026, while unpaid peacekeeping assessments stood at about $3.5 billion, she noted.
She expressed grave concern that delayed reimbursements continue to burden troop- and police-contributing countries, with outstanding contingent-owned equipment liabilities of roughly $483 million, effectively forcing those countries — many of them developing countries — to finance peacekeeping operations.
The representative of Singapore, speaking on behalf of the Association of Southeast Asian Nations (ASEAN), also expressed deep concern that liquidity challenges continued to “plague the peacekeeping budget”. She noted unpaid assessments of “$3.5 billion as at 30 April” — it is deeply worrying that severe spending restrictions have “drastically affected” peacekeeping missions’ ability to operate “safely and effectively”, she pointed out.
The UN80 reforms and the review of peace operations would not address the “root causes” of the liquidity problem, she added. “The root cause of these liquidity issues is well-known” and can only be addressed if all Member States with the capacity to pay their assessed contributions do so consistently.
Deep Alarm over Failure of Largest Financial Contributor to Pay
“Payment of assessed contributions is not optional,” agreed the European Union’s delegate, speaking on behalf of the European Union and European Union member States and aligning countries. As the largest financial contributor to the United Nations System, the bloc is “deeply alarmed” by this “unsustainable trajectory”, she said, noting that outstanding assessments have reached a record level of $6.5 billion — nearly 76 per cent of total assessments.
Liquidity shortfalls are not merely technical challenges or abstract accounting figures, they disrupt mandate delivery, delay reimbursements to Member States, weaken planning capacities and erode accountability across the system, she warned. The root cause of this crisis is the failure of some Member States to pay their assessed contributions in full, on time, and without conditions, she too pointed out.
The United Kingdom pays in full “within 30 days of receipt of our assessment letter”, that country’s representative informed the Committee. The seriousness and persistence of the Organization’s liquidity crisis has led to strict conservation measures across budgets, including a 15 per cent spending reduction in peacekeeping last year. Such measures undermine mandate delivery, divert senior management time and risk normalizing systemic underperformance, she warned. Japan’s delegate added: “The UN is struggling to survive rather than fully addressing global demands.”
China’s delegate noted that it pays the second largest share of UN assessments and has a record of making full payments. He, too, stressed that the most effective solution is for all Member States, especially “the one issued the largest assessment”, to pay their contributions to all budget accounts in full. “Payments must not be made with strings attached”, he said, as he called for an efficiency culture across all processes. This means strict financial discipline, reduced expenditure and enhanced effectiveness, so that “every penny contributed by Member States is put to the best use”, he said.
Proposals to Defer Mandatory Return of Unspent Funds at Year’s End
Delegates also used today’s discussion to return to a potential remedy: not returning payment credits to Member States. Under current rules, the UN 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 never actually received. In a vicious cycle, non-payment or late payment of assessed contributions creates a cash shortage; the cash shortage forces the UN to underspend; underspending generates credits back to Member States; those credits reduce future cash inflows; and the next budget cycle starts with even less money available.
China’s delegate noted that the Group of 77 and China has put forward “a pilot proposal” on the return of credits, aimed at upholding the assessed-contribution mechanism based on the capacity-to-pay principle, minimizing disruption to the existing UN financial system and incentivizing payments by Member States. Allowing a pilot period would help Member States and the Secretariat comprehensively assess possible impacts and shortcomings.
“If no action is taken, the Organization may be forced to return approximately $1.3 billion in credits in 2027 across the regular budget and peacekeeping operations”, the representative of Uruguay, speaking for the Group of 77 and China, added. Her Group’s proposal offers “a feasible, practical and effective way forward”, she said, encouraging all delegations to give this proposal serious consideration.
Japan’s delegate was among those who supported the implementation of a revised methodology for determining credits returned to Member States, based on actual expenditures and contributions collected.
Singapore’s representative, speaking on behalf of ASEAN, said the chronic problem of “the return of unspent funds” has “seriously eroded the Organization’s operational viability” and its ability to deliver crucial mandates.
While retaining credits is not a sustainable solution, the representative of the United Kingdom acknowledged “returning funds it never received” is untenable for the financial viability of the UN’s finances. Therefore, her country will work to consider a change in methodology of returning credit based on collections, subject to the final details of a balanced agreement. Any such change must be carefully designed to avoid unintended consequences for cash flow or timely payments, she warned.
The European Union’s delegate, speaking on behalf of the European Union and European Union member States and aligning countries said that while the bloc’s members continue to demonstrate leadership through timely payments, voluntary advancement of contributions and support for peacekeeping financing arrangements, their “solidarity cannot substitute responsibility”. The burden of this crisis cannot continue to fall disproportionately on those Member States that consistently fulfil their obligations, she said. She called on the Committee to continue “exploring practical measures to mitigate the impact of late and non-payments, including improvements to cash management tools and to the methodology governing the return of credits”.
UN Controller Provides Update since 7 May Briefing
Chandru Ramanathan, Assistant Secretary-General, Office of Programme Planning, Finance and Budget and UN Controller, provided updates on recent payments of assessed contributions since Ms. Pollard’s briefing on 7 May.
For the regular budget, Andorra and Senegal have paid in full, which brings the total number of Member States having paid in full to 109. For peacekeeping operations, Andorra, Botswana and Cyprus have fully paid, which brings the total number to 57. For the International Tribunals, full payments by Andorra, Cyprus and Guatemala brings to 91 the total number of Member States for that category. 53 Member States are fully paid for all three categories.
An honour roll of those States who paid in full is available here.