The United Nations is grappling with a severe financial crisis as it faces a widening funding gap amid global challenges, Secretary-General António Guterres said during a briefing with Member States in New York on Monday.
Guterres emphasized the urgent need for structural reforms to improve the organization’s efficiency and reduce expenses.
According to data shared by the UN Controller with the General Assembly’s Fifth Committee, the organization has only received $1.8 billion of the $3.5 billion assessed for its 2025 regular budget—leaving a deficit of nearly 50 percent.
As of April 30, the total amount of unpaid contributions stood at $2.4 billion.
The United States alone owes about $1.5 billion, followed by China with $597 million.
Other notable debts include Russia ($72 million), Saudi Arabia ($42 million), Mexico ($38 million), and Venezuela ($38 million). A further $137 million is still expected from other member nations.
In addition to the regular budget, the peacekeeping fund—which operates on a July-to-June fiscal calendar—has an outstanding balance of $2.7 billion, including previous arrears.
Contributions to international tribunals were also lagging, with $79 million owed as of the end of April.
“These are extremely difficult times,” Guterres remarked. “But they also present opportunities and responsibilities. The work of the United Nations has never been more crucial.”
The Secretary-General outlined plans to modernize UN operations, with a focus on peace and security, human rights, and sustainable development.
His proposals aim to reduce operational costs and streamline processes, with initial changes set to be included in the revised 2026 budget proposal to be presented in September 2025.
A more extensive overhaul is expected by 2027.
Guterres noted that departments dealing with political and peacekeeping matters might undergo a 20 percent reduction in staffing by removing overlapping roles.
He said this target could guide reductions across other departments, while still accommodating specific needs.
Although the reform process may involve initial expenses, such as relocating personnel or providing severance packages, Guterres said relocating roles from expensive cities could lead to long-term savings. Departments in high-cost locations like New York and Geneva are being asked to evaluate whether certain units could be downsized, relocated, or eliminated altogether.
A preliminary internal assessment has already identified over 3,600 distinct mandates within the UN Secretariat, with a comprehensive review now in progress to identify further efficiencies.