The General Assembly today agreed to end the practice of “returning” funds that were never collected from Member States as it adopted all texts forwarded by its Fifth Committee (Administrative and Budgetary).
This decision addresses a significant driver of the Organization’s liquidity problems. Under existing rules, the UN must credit unspent funds back to Member States against future assessments — even in cases where the underspending was caused by Member States paying late, partially or not at all.
The existing rule requiring the Secretariat to “return” unspent funds to Member States has created a damaging cycle, where unpaid contributions trigger cash shortages that, in turn, force the UN to hold back spending. This underspending then generates credits for Member States, reducing future payments and leaving the Organization with even less cash at the start of future budget periods.
Earlier this year, senior UN management officials warned that, without action, the Organization would be required to return approximately $1.3 billion in 2027 across the regular budget and peacekeeping operations. With today’s decision, the Organization is seen as avoiding an imminent financial collapse; nevertheless, non-payment — and partial or delayed payment — remain the root cause of the chronic cash crisis.
In addition to this historic decision, the Assembly approved a $5.1 billion annual peacekeeping budget for 2026-2027, down 10 per cent from the previous period.
Assembly President Welcomes ‘Landmark’ Decision on Credit Return
Annalena Baerbock (Germany), President of the Assembly’s eightieth session, praised the Fifth Committee’s hard work and spirit of compromise. She also welcomed, in particular, its “landmark” decision to revise the UN’s mechanism on the return of credits.
The Assembly adopted all texts referred to it by the Fifth Committee without a vote, apart from one concerning the financing of the United Nations Interim Force in Lebanon (UNIFIL) (currently contained in document A/C.5/80/L.32/Rev.1).
That text was adopted by a recorded vote of 137 in favour to 4 against (Argentina, Costa Rica, Israel, United States), with 1 abstention (Paraguay), after an oral amendment proposed by Israel was rejected
by a recorded vote of 5 in favour (Argentina, Costa Rica, Israel, Paraguay, United States) to 80 against, with 54 abstentions.
The reports of the Fifth Committee were introduced by the representative of Chile in his capacity as Rapporteur.
At the meeting’s outset, the Assembly observed a minute of silence in tribute to the victims of the recent earthquake in Venezuela.
(For full coverage of the preceding meeting of the Fifth Committee (Administrative and Budgetary), see Press Release GA/AB/4513 of 30 June.)