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Tuesday, September 16, 2025

UN revises 2026 regular budget proposal downwards over financial crunch

The United Nations has finalised the revised estimates for its 2026 proposed programme budget, outlining more than $500 million in reductions.

• September 16, 2025
UN officials
UN officials [Credit: Xinhuanet]

The United Nations has finalised the revised estimates for its 2026 proposed programme budget, outlining more than $500 million in reductions.

The global multilateral organisation also introduced the first measures of the UN80 Initiative, a wider effort to make the organisation more effective and resilient as it marks its 80th anniversary.

The revised estimates, communicated on Monday to the Advisory Committee on Administrative and Budgetary Questions, proposed reductions of 15.1 per cent of resources and 18.8 per cent of posts in the regular budget compared with 2025.

The support account for peacekeeping operations, which funds the staff and services that backstop UN missions worldwide, is also subject to reductions in the 2025-26 period.

The ACABQ, a subsidiary organ advising the General Assembly, will review the proposals before forwarding its recommendations to the Assembly’s fifth committee, where all 193 Member States decide on administrative and budget matters.

In a letter to member states, Secretary-General António Guterres said the reductions followed an extensive review of how mandates were delivered and resources allocated.

While ensuring balance among the three pillars of the UN Charter, peace and security, human rights, and sustainable development, secretariat entities explored how to improve delivery to optimise the use of resources.

Guterres stressed that the reductions have been carefully calibrated and were targeted, not across the board.

Programmes and activities directly supporting member states, particularly the least developed, landlocked, and small island developing states, as well as advocacy for Africa’s development, were shielded from reductions.

Support for the peacebuilding fund and the resident coordinator system was maintained.

Regional economic commissions will face smaller adjustments, while the regular programme for technical cooperation will continue to grow, strengthening capacity-building support for developing countries.

“Reductions of this magnitude will entail trade-offs. Entities have identified likely impacts on deliverables, such as a narrowed scope, adjusted timelines, or reduced frequency.

“We will also take mitigation measures to protect core mandates and service quality, including by prioritising high-impact outputs, pooling expertise across entities and relying on virtual modalities and automation,” Guterres wrote.

According to the secretary-general, the UN today operates in a world of growing political and financial uncertainty.

In this challenging environment, the UN80 Initiative aims to create a stronger, more effective United Nations, he stressed. He added that the revised estimates reflected this ambition and include proposals to improve how the organisation operates.

Measures include creating new administrative hubs in New York and Bangkok, as well as consolidating payroll into a single global team across New York, Entebbe, and Nairobi.

Relocating certain functions from high-cost duty stations, such as New York and Geneva, to lower-cost duty stations is also part of the measures.

Further savings are planned through real estate. The organisation will vacate two leased buildings in New York by 2027, with annual savings projected to begin in 2028.

Collectively, these measures are intended to reduce duplication, improve quality, and safeguard the delivery of mandates, while meeting the call from member states for greater efficiency.

In a letter to UN staff, Guterres acknowledged that the changes would impact their daily work and professional lives, but assured them that they would not face them alone.

“You will be fully engaged and supported throughout the process,” he said, pledging regular communication, opportunities for consultation, and practical guidance at every stage.

The secretary-general acknowledged that the choices involved in the revised budget had been difficult.

He said accountability for the decisions began with him as secretary-general, but also extended to managers and staff across the organisation.

He stated that the changes must be implemented with fairness, empathy, and professionalism, and that everyone has a role to play in upholding UN values as the process moves forward.

(NAN)

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