United Nations Secretary-General António Guterres has warned that the global organisation is approaching a severe financial crisis, driven by mounting unpaid dues from member states and outdated financial regulations.
In a letter addressed to UN member states, Guterres cautioned that the situation threatens the organisation’s ability to function effectively and could lead to a financial breakdown if urgent action is not taken.
“The crisis is worsening, jeopardising programme delivery and pushing the organisation toward financial collapse,” he stated, adding that conditions are expected to deteriorate further in the coming months.
The UN chief urged member states to either fulfil their financial obligations in full and on time or agree to major reforms of the organisation’s financial framework.
According to him, failure to take decisive action would leave the UN facing “the very real prospect” of financial collapse.
Guterres identified two major challenges: persistent non-payment of assessed contributions and an outdated rule that requires the UN to return unspent funds to member states annually, amounting to hundreds of millions of dollars.
“This leaves us trapped in a bureaucratic paradox — expected to refund money that simply does not exist,” he said, describing the situation as absurdly restrictive.
He further revealed that some member states had formally announced their intention not to honour assessed contributions that make up a substantial portion of the UN’s approved regular budget.
“Either all member states meet their obligations fully and promptly, or the organisation must fundamentally reform its financial rules to avert collapse,” Guterres warned.
Under existing UN guidelines, member states’ annual contributions are calculated based on factors such as gross domestic product and debt levels.
The United States, under this formula, contributes 22 per cent of the UN’s regular budget and approximately 26 per cent of the peacekeeping budget.
However, the U.S. has significantly reduced voluntary funding to UN agencies and declined to make mandatory payments to both the regular and peacekeeping budgets.
By the end of 2025, unpaid dues had reached a record high of 1.57 billion dollars, according to the Secretary-General.
Established in 1945, the United Nations has 193 member states and is mandated to promote global peace and security, human rights, sustainable development and humanitarian assistance.
Concerns over the UN’s relevance have grown following the launch of a new “Board of Peace” initiative by U.S. President Donald Trump, which some analysts fear could weaken the role of the UN.
Although Trump has acknowledged the UN’s potential, he has publicly criticised the organisation for falling short of its responsibilities.
In response to the financial strain, Guterres launched a reform initiative in 2025 known as UN80, aimed at cutting costs and improving efficiency across the organisation.
As part of the reform process, member states agreed to reduce the 2026 UN budget by about seven per cent to 3.45 billion dollars.
Despite these measures, Guterres warned that the organisation could exhaust its available funds as early as July if the situation does not improve.
UN records show that as of Friday, only 36 out of 193 member states had fully paid their assessed contributions for the 2026 financial year.