UN Faces Deepening Crisis as Unpaid Dues Top $5 billion

Secretary-General António Guterres (on screen) addresses the general debate of the General Assembly’s 79th session.

The United Nations is facing a worsening financial crisis that threatens its ability to carry out essential global work, as delegates highlighted during the General Assembly’s Fifth Committee meeting on the organisation’s budget.

Unpaid contributions have surged to $2.4 billion for the regular budget and $2.7 billion for peacekeeping operations. This shortfall has forced the UN to cut spending, freeze hiring, and scale back some services, risking damage to its credibility and effectiveness.

Switzerland, speaking on behalf of itself and Liechtenstein, stressed that delays in payment and service cancellations undermine trust in the UN’s ability to deliver on its mandates.

One proposed solution is to allow the UN to retain unspent funds at the end of the fiscal year as a “protective buffer,” rather than returning them immediately to Member States. This buffer would help maintain operations during early-year periods when payments are slow.

Delegates also supported limited use of “special commitments” — emergency funding tools — to cover shortfalls caused by late contributions.

However, several countries, including Kazakhstan, Norway, and the United Kingdom, emphasised that these are temporary fixes, with the core problem being persistent late or non-payment of dues.

Norway called for bold financial reforms to address the root causes.

The European Union highlighted that the crisis presents “real operational risks” and warned that the burden should not fall solely on those countries that pay on time.

Singapore, representing ASEAN, described the UN’s liquidity issues as routine, citing the Economic and Social Commission for Asia and the Pacific’s need to close offices for three months and suspend travel and hiring.

Delegates expressed concern that one country — widely understood to be the United States — accounts for over half of all unpaid dues, reportedly withholding funds for political reasons.

Russia called for greater transparency in how cost-saving measures are managed and cautioned against unilateral decisions without Member State input.

UN management official Catherine Pollard noted some progress, saying that since early May, several countries have paid in full across various budget categories, with 106 nations having paid their regular budget dues for the year.

Still, only 61 countries have met all their financial obligations in full, leaving the UN’s capacity to serve global needs, especially in times of crisis, at serious risk without broader, timely support.