NEW YORK, 2nd December, 2025 (WAM) -- UN Secretary-General Antonio Guterres told the Fifth Committee the UN is facing its most fragile cash position in years, despite sharp reductions already built into next year's budget plans.

"Liquidity remains fragile, and this challenge will persist regardless of the final budget approved," he said, pointing to the "unacceptable volume of arrears" owed by Member States.

The UN ended 2024 with $760 million in unpaid assessments, most of it still outstanding, and has yet to receive $877 million in contributions due for 2025 - bringing total arrears to around $1.586 billion.

With less than five weeks remaining in the year, only 145 of UN's 193 Member States had paid their 2025 dues in full. Key contributors such as the United States and Russia have yet to pay what they owe.

"I have repeatedly appealed to Member States to pay their assessed contributions in full and on time," the Secretary-General said, warning that cash shortfalls are forcing the organisation to operate well below approved budget levels.

The warning comes as delegations consider revised estimates for the UN's 2026 regular budget, which already reflect deep structural cuts under the UN80 reform initiative - a system-wide efficiency drive aimed at modernising operations and lowering costs.

Under the revised proposal, the UN's regular budget for 2026 would stand at $3.238 billion, a reduction of $577 million - or 15.1 percent - compared with 2025. Some 2,681 posts would be cut, an 18.8 percent reduction from current levels.

Special political missions would also face cuts of more than 21 percent compared with 2025 levels, largely due to mission closures and streamlined staffing.

As part of the savings drive, the UN plans to consolidate payroll processing into a single global team across three duty stations and create shared administrative hubs starting in New York and Bangkok.

The Secretariat is also reviewing functions that can be moved to lower-cost locations. Since 2017, lease terminations in New York have already saved $126 million, with a further $24.5 million a year in expected savings from additional closures by 2028.

The plan includes one-time separation and relocation costs of $5.4 million, as voluntary exit programmes are used to limit involuntary job losses.

The revised estimates have been reviewed by the Advisory Committee on Administrative and Budgetary Questions (ACABQ) and are now before the Fifth Committee for negotiations ahead of year-end budget approval.

Member States commended the Secretary-General's efforts in presenting the revised estimates, acknowledged the Organisation's ongoing liquidity challenges, and expressed support for a stronger and more agile UN.

Several delegations, however, echoed concerns about the compressed timeline, warning that the late arrival of key documents is constraining full scrutiny. Some diplomats warned that proposed cuts fall more heavily on junior and general service staff than on senior posts, threatening both geographic balance and workforce rejuvenation.

Others cautioned that proposed staff reductions appear uneven across the UN's three pillars, with proportionally deeper cuts to development-related programmes.

The Secretary-General said he was "sincerely worried" by that concern. He insisted that, in overall terms, the development pillar is in fact facing the smallest proportional reduction, with Africa-related programmes largely protected and the biggest cuts instead falling on support and back-office functions rather than frontline delivery.

"Our commitment to development is absolutely fundamental and that our commitment to the African continent is absolutely fundamental," he said.

Final approval will require endorsement by the full General Assembly later this month.