Fifth Committee Approves $3.45 Billion Proposed Budget for 2026, Reflecting Cuts of 15 Per Cent in Financial Resources, 2,900 Staff Posts

Fifth Committee Approves $3.45 Billion Proposed Budget for 2026, Reflecting Cuts of 15 Per Cent in Financial Resources, 2,900 Staff Posts

Emerging from complex negotiations, delegates in the Fifth Committee (Administrative and Budgetary) today approved the United Nations programme budget for 2026, totalling $3.45 billion, as they concluded the main part of their eightieth session. The budget largely reflects the Secretary-General's proposed 15 per cent reduction in financial resources and a nearly 19 per cent cut in staffing.

Negotiations on the 2026 programme budget reflected both the ongoing financial constraints facing the Organization and the broader context of the UN80 reform initiative, which aims to improve efficiency, reduce duplication and better align resources with mandates.

Member States had debated sharply over the size and scope of the budget, including proposed reductions in staff posts, the funding of special political missions and the allocation of resources to support new reform priorities. The discussions were further complicated by concerns over cash-flow challenges, delayed or incomplete contributions from Member States, and the need to balance fiscal discipline with the operational requirements of the Organization.

Chandru Ramanathan, UN Assistant Secretary-General for Programme Planning, Finance and Budget and Controller, said preparing the budget in less than six weeks was exceptionally challenging. Compiling the 345 tables in the document was "not an easy task", nor was responding to more than 2,000 questions from the Advisory Committee on Administrative and Budgetary Questions (ACABQ), he said.

"As you break for the New Year, I just want to point out that we start another arduous journey," he cautioned, noting that, as of tomorrow, 2,900 positions will be abolished. He added the Organization must ensure that staff occupying those abolished posts who have not yet separated get paid in January, and that over 1,000 who have already signed separation agreements must be properly taken care of, not falling out of the system.

Strong Spirit of Cooperation and Compromise

"We have achieved one of the most ambitious negotiated outcomes in recent years on the UN common system," said the representative of the European Union, in its capacity as observer. Despite challenging, inefficient and exhausting negotiations, delegations demonstrated a strong spirit of cooperation and responsibility and successfully adopted the 2026 regular budget. "This session marked an important step in the implementation of the UN80 Initiative," she added, welcoming the Committee's embrace of a gradual approach to the initiative's adaptation.

"While standing fully behind this reform and its potential to make the United Nations fit for purpose, we also recognize its enormous impact on the Organization and its valued staff that must carry many of its consequences and implications," she stressed. Progress was made in enhancing budgetary transparency, discipline and effectiveness, while the Committee also reaffirmed the core value of multilingualism. "These achievements, reached by consensus, must now be matched by responsibility from all Member States," she said, calling on all countries to pay their assessed contributions in full, on time and without conditions.

Reforms to Make UN More Effective, Fit for Purpose

The representative of the United States commended the Fifth Committee for "embracing common sense reform and for adopting a leaner and better prioritized 2026 regular budget". "Today, we deliver a $570 million saving in our assessment compared to last year, and we reduced the UN's bloated bureaucracy," he said, adding that these consequential reforms create a more focused, effective UN fit for purpose for the people it serves - one that directs its resources to core mandates and puts the Organization firmly on the path to "get back to basics".

He said that Washington, D.C., further expects "ambitious and tangible reform proposals" in the 2027 and 2028 budgets, including structural realignments, improved efficiency and the elimination of duplication, urging the Secretary-General to put forward "bold proposals that deliver the structural changes the United Nations urgently needs".

The representative of Angola, speaking on behalf of the African Group, welcomed the spirit of collegiality and compromise which enabled consensus on key items, led to balanced outcomes and preserved the Committee's intergovernmental and membership-driven character. "This session was conducted under extraordinary circumstances," he said, citing the tight negotiation timeline. "Nevertheless, the Committee has managed to organize its work, hold discussions and achieve constructive results."

He said that the Group worked constructively to ensure an adequate level of resources for the effective implementation of all mandated activities, in particular funding the UN's development pillar to support the achievement of the Sustainable Development Goals. The Group is pleased that the Secretary-General's request for revised estimates for the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) were fully approved.

China's delegate expressed support for the reforms proposed by the Secretary-General to reduce costs and improve efficiency. The Secretariat must fully implement the resolutions, eliminate redundancies and promote a culture of efficiency. In that regard, he stressed the need to "reduce formalism and bureaucracy and cherish the valuable resources provided by Member States".

Japan's delegate expressed support for continuing UN reforms, especially stronger budget discipline and informed decision-making. Fiscal discipline is needed "not only through 2027, but also beyond", he said. He also called for consideration of geographical diversity in the implementation of the UN80 Initiative, and stressed the need to close the gap for unrepresented and underrepresented countries in the Secretariat. Next year's budget negotiations should take into account progress to be made under UN80's Workstreams 2 and 3, he added.

Severe Cash-Flow Challenges, Member States Must Pay Up as Soon as Possible

The United Nations ended 2024 with $760 million in arrears. As of 1 December 2025, $709 million was still outstanding from 2024, and the Organization had also not received $877 million of dues for 2025, bringing arrears to $1.586 billion.

The Controller noted that many countries have already paid their 2026 contributions in advance, appealing to Member States to "send in the money as quickly as possible".

The United Nations faces severe cash-flow challenges when Member States do not pay their mandatory contributions on time or in full. The situation is further complicated by credit returns arising from underspending due to contributions received too late in the financial period to be fully implemented.

Under the Organization's Financial Rules and Regulations, any unspent portion of the budget - whether due to late receipt or operationally unavailable funds resulting from non-payment - must be returned to Member States as credits against future assessments. As a result, the United Nations cannot retain surplus funds to offset future cash shortfalls and may enter the next financial period with reduced liquidity.

There was apparently no major breakthrough on the proposed measures to address the liquidity crisis, including a temporary suspension of credit returns.

On this, the speaker for the European Union noted that discussions on the financial situation advanced, including agreement on adjusting the Financial Regulations and Rules. She also indicated that collective efforts would continue to "identify sustainable solutions to the Organization's liquidity challenges".

Delegates Clash over Country-Specific Human Rights Mandates

Negotiations on funding country-specific human rights mandates proved difficult, triggering a vote despite the Committee's usual practice of reaching agreement by consensus.

The draft resolution "Revised estimates resulting from resolutions and decisions adopted by the Human Rights Council at its fifty-eighth, fifty-ninth and sixtieth regular sessions and thirty-seventh special session" (document A/C.5/80/L.12) was rejected by a recorded vote of 14 in favour to 85 against, with 48 abstentions.

Introducing that text, the representative of the Russian Federation, speaking on behalf of a number of countries, expressed reservations about various resolutions adopted by the Human Rights Council, as noted in "L.12". The politicization and lack of justification for these resolutions leaves no doubt, he said, adding: "We insist on denying resources for [these] resolutions."

Denmark's delegate, speaking for the European Union, called for a recorded vote on that text, and said it is the Fifth Committee's duty to ensure the mandates given by UN legislators are adequately resourced. The Russian Federation's proposal is a violation of the decisions taken by the Human Rights Council and an infringement of the Fifth Committee's role, she said.

Agreeing, Ukraine's delegate said that the resolutions targeted by "L.12" establish essential investigative and accountability mechanisms, in line with the Council's mandate to promote and protect human rights - these include the Independent International Commission of Inquiry on Ukraine.

If approved, that text would have had the Committee not approve any resources for the implementation of various resolutions adopted by the Human Rights Council concerning the situation of human rights in Ukraine stemming from the Russian aggression, as well as the human rights situation in Iran, Venezuela, Democratic People's Republic of Korea, Belarus and Eritrea, among others.

Iran's delegate said that human rights must be addressed in strict conformity with the principles of universality and non-selectivity. His country will not recognize politically motivated bodies that lack objectivity and are established to intervene in in the internal affairs of sovereign States.

Review of UN's Staff Compensation Package

Among other texts adopted by the Fifth Committee are "United Nations common system" (document A/C.5/80/L.17) and "Financing of the United Nations Support Office in Haiti" (document A/C.5/80/L.21).

By the terms of "L.17", the General Assembly would take note of the 2025 report of the International Civil Service Commission and welcome efforts taken by the Commission to conduct a comprehensive review of the UN's staff compensation package, for completion and review by the General Assembly at its eighty-first session. The package is governed by the UN common system, a standardized framework for salaries, benefits and allowances across UN entities.

Citing the UN80 reform initiative, the Assembly would request the International Civil Service Commission to align its work with the objectives of cost containment and other agreed aims, as well as the need for efficiency and long-term financial sustainability, including through the rationalization of allowances and benefits. The Assembly would also request the Commission to continue to review the relationship between the net remuneration of UN staff and that of the comparator civil service - namely United States federal officials - and reaffirm that its preferred margin of 115 - or 15 per cent higher than comparable United States roles after cost-of-living adjustments - should be maintained over time.

Funds for Newly Established UN Support Office in Haiti

By the terms of "L.21", the Assembly would authorize the Secretary-General to establish a special account for the income received and the expenditure incurred in respect of the Office. It would also authorize the Secretary-General to enter into commitments for the Office in an amount not exceeding $271.32 million for the period from 1 October 2025 to 30 June 2026.

Hard Work, Unwavering Commitment Led to Meaningful Outcome in Critical Year

Committee Chair Zsuzsanna Horváth (Hungary) thanked all involved for their "hard work, long hours, unwavering commitment and dedication to see this through together".

"Now I have direct knowledge, first-hand experience, of how intense and demanding the work of the Fifth Committee can be," she said, adding: "There were moments during the negotiations when I started questioning my life choices."

However, she continued: "I'm still grateful for having been part of this experience, and I wouldn't trade it for anything. So, hats off to you. We have reached a truly meaningful outcome in this critical year".

Complete Live Blog coverage of today's meeting can be found here.

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* The 8^th to 19^th Meetings were not covered.