UN alters budget rules to ease cash crunch, blocking refund claims from debtor states

NEW YORK, July 1 — The UN General Assembly yesterday made a new rule to bar member states from demanding return of unspent funds before paying their contributions to the financially troubled organisation.

“Since very early in my mandate, I have called for this change, and I am grateful to Member States for taking this important step,” Secretary-General Antonio Guterres said in a statement, calling the change critical for “immediate operational continuity.”

“This important change will greatly benefit my successor who will no longer be hamstrung by being forced to return funds that were, all too often, never even received in the first place.”

The United Nations’ regular budget — US$3.4 billion (RM13.8 billion) for 2026, down seven per cent from the previous fiscal year — is funded by mandatory contributions from 193 member states, determined by their economic heft.

But the two largest contributors — the United States and China — are regularly criticised for late and delayed payments.

Under the new rule, the unused funds will only be disbursed to states that owe nothing to the United Nations.

Guterres warned in January that the UN faced a possible financial collapse if some countries, including the United States under President Donald Trump, continued to balk at paying what they owe. — AFP