The United Nations is grappling with a severe financial crisis, with Secretary-General António Guterres warning of dire consequences unless urgent reforms are implemented. Addressing Member States in New York on Monday, Guterres outlined an ambitious plan to restructure the global body amid rising global challenges and growing fiscal strain.
According to the UN Controller’s report to the General Assembly’s Fifth Committee, only $1.8 billion has been received out of the $3.5 billion assessed regular budget for 2025 — a staggering shortfall of nearly 50%. As of April 30, total unpaid assessments stood at $2.4 billion, with the United States owing $1.5 billion, followed by China ($597 million), Russia ($72 million), Saudi Arabia ($42 million), Mexico and Venezuela ($38 million each), and other countries collectively owing $137 million.
The UN’s peacekeeping operations are also under strain, with unpaid contributions — including arrears from prior years — totaling $2.7 billion. Contributions to international tribunals are similarly lagging, with $79 million still outstanding.
“These are times of peril,” Guterres said, “but they are also times of profound opportunity and obligation. The mission of the United Nations is more urgent than ever.”
Guterres unveiled broad plans to revamp the UN system, aimed at cutting operational costs, streamlining functions, and modernizing the organization’s approach to peace, development, and human rights. Proposed changes include a possible 20% reduction in staff in key departments, relocation of certain functions from high-cost duty stations, and elimination of overlapping roles.
Preliminary assessments have already identified over 3,600 unique mandates within the UN Secretariat alone, which Guterres noted places a disproportionate burden on smaller nations. Member States have been invited to participate in a review of these mandates, with nearly 50 submissions already received from senior officials.
“These reforms are not a fix for the liquidity crisis caused by unpaid dues,” Guterres emphasized, “but they will help us stretch every dollar further and build a more efficient and effective organization.”
The Secretary-General said changes would be reflected in the 2026 budget estimates, with deeper reforms to follow in 2027. The restructuring will also involve consultations with staff and unions to ensure a humane and professional transition, including potential termination packages and relocations.
He concluded by urging Member States to support the UN80 Initiative, launched in March, which focuses on enhancing operational efficiency, reviewing mandate implementation, and exploring structural changes across the system.
“Let us seize this momentum with urgency and determination,” Guterres said. “Together, we can build a stronger, more effective United Nations for today and the future.”
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