The Fifth Committee (Administrative and Budgetary) today reached a significant breakthrough in addressing the United Nations’ chronic liquidity crisis, agreeing to end the practice of “returning” funds that were never collected from Member States, as it concluded its second resumed session.
The 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 or partially, or not paying at all.
After the General Assembly approves a budget, the Secretariat determines the amount each Member State is required to contribute. The Secretariat then issues invoices to Member States for these amounts. According to the regulations, Member States are expected to pay their dues within 30 days.
In practice, however, many Member States do not pay in full or on time. Instances of partial payment and delayed payment are common, leading to cash flow difficulties for the Organization. Moreover, non-payment by major contributors could pose a serious financial risk, potentially threatening the Organization’s solvency.
The existing rule requiring the Secretariat to “return” unspent funds to Member States has created a damaging cycle: unpaid contributions trigger cash shortages, which force the UN to hold back spending. That 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 urged Member States to act decisively to break “this vicious cycle”. They warned that without action, the Organization would be required to “give back approximately $1.3 billion in 2027 across the regular budget and peacekeeping operations.”
Historic Decision Prevents Imminent Financial Collapse
With the adoption by consensus of today’s resolution titled “Credit-return methodology” (document A/C.5/80/L.50), the Organization is seen avoiding an imminent financial collapse, with many Member States hailing the agreement as “historic”. By the text, the Committee agreed to introduce, for a four-year trial period, a new methodology to ensure that unspent funds are returned to Member States “only when they are backed by cash” – in other words, when the Organization underspent the amount of payments it received.
However, delegates and UN officials made clear that this change does not release Member States from their fundamental obligations to pay their dues in full and on time, as non-payment and partial or delayed payment are the root cause of the chronic cash crisis.
“We have a leaking boat almost on the verge of sinking, and what you have done is to have plugged some of those holes, to give us a chance to get to a shore and begin to fix the boat gradually,” said Chandramouli Ramanathan, Assistant Secretary-General and Controller.
The Controller said the Secretariat was facing the prospect of returning $1.5 billion in less than 12 months — something that would have made it virtually impossible for the Organization to continue operating. Thanks to today’s decision, he is now looking at returning around $320 million over the next 12 months, which effectively provides “additional liquidity of more than $1.2 billion”.
Member States Welcome Landmark Agreement
The representative of Brazil said cash flow difficulties are “not abstract”. They delay the timely implementation of mandates, cause harm to troop- and police-contributing countries, and “endanger millions of people who are affected by armed conflict, extreme poverty and hunger”.
In that regard, Japan’s delegate described the decision to pilot a modified methodology for the return of credits as “a historic achievement”. This will “put an end to the Kafkaesque practice of returning cash that was never collected”, an issue that has persisted almost since the Organization’s establishment. “In reaching this consensus, we spent several nights in the basement,” she added.
“This significant reform helps to implement the practical proposition that the UN not be required to ‘return’ funds that were never collected,” said the representative of Canada, speaking also for Australia and New Zealand. “In practice, this will improve the Organization’s ability to deliver the work that we, Member States, request of it”.
“Today’s agreement sends a powerful message,” said Uruguay’s representative, speaking for the Group of 77 and China, “that multilateralism continues to deliver meaningful results when Member States demonstrate political will, good faith and a shared commitment to strengthening this Organization”.
“It stands as a milestone in the ability of Member States to forge consensus even in challenging times, united by a shared trust in the Organization and a common responsibility for its future,” added the speaker for the European Union, in its capacity as observer.
The Russian Federation’s delegate, however stressed that if certain States refuse to meet their financial contributions, various administrative measures by the UN Secretariat will not solve the liquidity problem. The text explicitly sets out this premise, he noted, also adding that it also notes that sometimes States are unable to make payments due to “external financial constraints” including the consequences of unilateral coercive measures as these create obstacles for international bank transfers.
China’s representative drew attention to the substantial arrears in assessed contributions by the largest contributor. That country must pay its contributions in full, he said.
$5.1 Billion Approved for Peacekeeping Operations in 2026/2027
In addition to the historic decision, the Committee approved a $5.1 billion 2026/2027 annual peacekeeping budget, down 10 per cent from the previous period.
The representative of Singapore, speaking for the Association of South-East Asian Nations (ASEAN), welcomed the consensus adoption of various peacekeeping texts.
The United States’ speaker said that the $5.1 billion budget adopted today represents a significant restructuring of the peacekeeping operations in years, highlighting a number of elements, from the long overdue streamlining of the mission in Kosovo to the first full-year funding for the UN Support Office in Haiti. His country will continue to work to maximize efficiencies, he said, welcoming the expanded application of the scalability model to peacekeeping support functions - this will help ensure that resources are directed where they have the greatest impact. Mexico’s delegate also welcomed the approval of resources for the UN support office in Haiti.
The representative of Canada, speaking also for Australia and New Zealand, said the agreed budgets reflect efforts to “reduce duplication, strengthen coordination, and identify efficiencies” while maintaining a clear focus on the effectiveness and impact of peacekeeping operations in an increasingly complex environment.
Djibouti’s delegate, speaking for the African Group, said peacekeeping appropriations cover UN peacekeeping operations, the support account for peacekeeping operations, the Regional Service Centre in Entebbe and the UN Logistics Base at Brindisi.
He further welcomed the decisions concerning the reimbursement of troop- and police-contributing countries, including the establishment of a single updated rate of reimbursement for contingent personnel, as well as the triennial review of the rates and standards of reimbursement for contingent-owned equipment. “These decisions constitute an important acknowledgement of the responsibilities and sacrifices borne by contributing countries,” he said.
Delegates Approve Draft on UN Interim Force in Lebanon, Reject Amendment
Delegates, by a recorded vote of 139 in favour to 4 against (Argentina, Costa Rica, Israel, United States) with 1 abstention (Paraguay), approved a draft resolution on the financing of the UN Interim Force in Lebanon (UNIFIL) (document A/C.5/80/L.32/Rev.1).
By its terms, the Committee recommended that the Assembly appropriate $446.4 million to the special account for UNIFIL for the period from 1 July 2026 to 30 June 2027.
Introducing that text on behalf of the Group of 77 and China, Uruguay’s representative pointed out that Israel has still failed to pay $1.1 million due to the UN, resulting from a tragic incident in which Israeli Defence Forces shelled a UNIFIL compound in Qana, Lebanon, in 1996.
According to recent Secretary-General reports, he said, Israel has not responded to 31 letters on the matter, the most recent of which was dated 30 December 2025. Against that backdrop, the Group of 77 decided to sponsor preambular paragraph 4 and operative paragraphs 4,5 and 18 of the draft resolution as well as the text as a whole.
Prior to the vote, the representative of Israel introduced an oral amendment which would have deleted the afore-mentioned paragraphs. The Committee failed to approve that amendment by a recorded vote of 5 in favour (Argentina, Costa Rica, Israel, Paraguay) to 83 against with 53 abstentions.
The representative of the United States warned that “using a funding resolution to legislate a settlement is inappropriate” and only served to further politicize the work of the General Assembly.
“[The Fifth Committee] is not the appropriate forum for political discussions,” said the representative of Cyprus, speaking on behalf of the European Union. Voicing the bloc’s concern about the Committee’s increasing tendency to resort to recorded votes on the financing of UNIFIL, he noted that its member States abstained in the vote on the oral amendment proposed by Israel’s delegate.
Israel’s delegate echoed those points, underlining the need to maintain the Fifth Committee’s role as a “technical and non-political body”, and categorically rejected all attempts to undermine its work. “No Member State should be singled out or unjustly vilified for political gain,” she stressed.
Syria Highlights Need for Well-Funded UN Disengagement Observer Force
Also on the Middle East, the Committee adopted without a vote a draft on financing the United Nations Disengagement Observer Force (UNDOF) (document A/C.5/80/L.40).
Syria has been usually active on this item, its delegate said, because when the Syrian people liberated themselves, Israel decided to move into the area where UNDOF operates. As a result the Mission faces an “unusual reality”, he said, noting that the Syrian community in the region is facing aggression from the Israel Defense Forces. “UNDOF is doing real meaningful work on the ground” and that requires resources, he said, adding that his country is engaging politically, and hopes to resolve this issue. “Until then, we have to do everything we can to ensure” that the UN presence is funded, he stressed.
Drafts on several other peacekeeping operations were also adopted without a vote.
They included texts on financing of the UN Interim Security Force for Abyei (document A/C.5/80/L.34); UN Multidimensional Integrated Stabilization Mission in the Central African Republic (document A/C.5/80/L.35);
UN Peacekeeping Force in Cyprus (document A/C.5/80/L.36); UN Organization Stabilization Mission in the Democratic Republic of the Congo (document A/C.5/80/L.37); UN Interim Administration Mission in Kosovo (document A/C.5/80/L.38); UN Multidimensional Integrated Stabilization Mission in Mali (document A/C.5/80/L.39); UN
Mission in South Sudan (document A/C.5/80/L.41); UN Mission for the Referendum in Western Sahara (document A/C.5/80/L.42); UN Support Office in Haiti (document A/C.5/80/L.44) and the activities arising from Security Council resolution 1863 (2009) (document A/C.5/80/L.43).
Also adopted were drafts on the triennial review of the rates and standards for reimbursement to Member States for contingent-owned equipment (document A/C.5/80/L.49); rates of reimbursement to troop- and police-contributing countries (document A/C.5/80/L.46); the support account for peacekeeping operations (document A/C.5/80/L.45), financing of the UN Regional Service Centre in Entebbe, Uganda (document A/C.5/80/L.47, and of the UN Logistics Base at Brindisi, Italy (document A/C.5/80/L.48).
Board of Auditors Reports
The Committee also adopted a draft resolution titled “Financial reports and audited financial statements, and reports of the Board of Auditors” (document A/C.5/80/L.33)
Deferred Agenda Items
Also adopted today was a draft decision on “Questions deferred for future consideration” (document A/C.5/80/L.51 and the Committee took note of the Secretary-General’s notes, as contained in documents A/C.5/80/19 and A/C.5/80/20.
Several delegations, including Norway and Israel, expressed regret that cross-cutting issues have yet to be addressed, including the issue of sexual exploitation and abuse.
Closing Remarks by Committee Chair
“No Chair succeeds alone,” said Committee Chair Zsuzsanna Horváth (Hungary) in her closing remarks, thanking colleagues who helped her navigate even the most difficult moments.
“When I accepted the honor of chairing the Fifth Committee, I thought I had a fairly good idea of what awaited me,” she said. However, she added, “I have to admit that if someone had shown me a preview of these past months, I might have asked a few more questions before saying yes”.
But then again, “helping to keep the United Nations functioning is a cause that makes even the longest nights worthwhile”. Looking back over the entire eightieth session, “I believe we have every reason to be proud of what this Committee has accomplished”.