United Nations Secretary-General António Guterres introduced a revised budget proposal for 2026 to the General Assembly’s Fifth Committee (Administrative and Budgetary).
The revised estimates, part of the comprehensive UN80 reform initiative, propose a massive reduction in spending and staffing to create a more agile, resilient, and cost-effective Secretariat.
Backdrop: liquidity crisis and arrears
Secretary-General Guterres emphasized that the necessity for deep structural cuts is fundamentally a pragmatic response to the UN’s persistent and fragile liquidity crisis. He told the Committee that chronic late payments from Member States have hampered the organization’s ability to function, noting that the UN faces nearly $1.6 billion in outstanding dues.
“Liquidity remains fragile, and this challenge will persist regardless of the final budget approved. I have repeatedly appealed to Member States to pay their assessed contributions in full and on time,” he said.
The initial budget for 2026 was largely prepared before the UN80 initiative began, failing to reflect the necessary comprehensive review of resource requirements. The revised proposal, therefore, aims to align resources with organizational priorities while simultaneously responding to the dire fiscal context.
UN80 initiative: what the cuts entail
The revised budget seeks targeted efficiencies and cost reductions for 2026, resulting in a substantial downsizing of the UN Secretariat.
The key reductions include:
Budget Reduction: A total proposed regular budget of $3.238 billion, which is a $577 million (15.1%) reduction compared with the 2025 appropriation.
Staffing Cuts: The elimination of 2,681 posts—an 18.8% reduction—revising the proposed staffing table to 11,594 posts.
These changes are driven by the first workstream of the UN80 initiative, which includes initial measures to modernize operations. This entails creating common administrative platforms to serve entities in each duty station, starting with New York and Bangkok, and consolidating payroll processing into a single global team across three locations. The plan also involves reviewing functions that could be performed more effectively in lower-cost duty stations and includes a request for $5.4 million for one-time costs related to staff separations and relocations.
“These measures constitute substantial budgetary reductions that affect real people, families, and futures—and we must never lose sight of this human dimension,” Guterres said.
