More on the Fifth Committee and the Cuts in the UN Budget and Posts: Shared by Tom McDermott

"There were moments during the negotiations when I was questioning my life choices."

 Hungarian Ambassador Zsuzanna Horváth, Chair of the Fifth Committee, "

The UN's Largest Budget and Staff Cuts in History: 2,900 Posts Abolished for 2026

Author: Ronny Patz

Publication: LinkedIn

Date: December 30, 2024

Click here for the article

Click here for related article

Summary:

The UN General Assembly's Fifth Committee adopted by consensus the 2026 UN budget featuring the largest budget and staff cuts in UN history. Effective January 1, 2026, 2,900 UN staff posts will be abolished. While many posts are vacant, significant numbers of staff will face termination, relocation, or reassignment. 

Despite approval of the budget, UN Controller Chandramouli Ramanathan expressed concern about paying salaries later in 2026, given depleted liquidity reserves and a potential 22% funding shortfall if the United States doesn't pay its assessed contributions. The US delegation made no commitment to payment, while both USA and China indicated these cuts are only the first step in ongoing reforms through the 2027 budget.

Earlier predictions by Patz and others  that member states would reject the cuts proposed by the SG were wrong for four reasons: 

* Fifth Committee delegates failed to recognize the cuts could worsen the liquidity crisis; 

* the G77 and EU cancelled each other out rather than pushing for the status quo; 

*  China's budget-hawkish stance as it now pays 20% of the UN budget. 

* ACABQ and the Fifth Committee failed to recognize the severity by focusing on micromanagement instead of the big picture.

Patz argures that unless the US announces payment of assessed contributions for 2024, 2025, and/or 2026, the adopted budget will be "an empty shell." If the USA doesn't pay, then today's adoption of the largest budget cuts in the 80 year history of the United Nations could be the best worst day the UN will have in the next 12-24 months. This would be the legacy of Guterres who gambled big time by proposing these cuts. And who would have lost his gamble.

With UN underspending repayment from 2024, depleted reserves, and risk of no US funding, 2026 could be the worst year in UN finances history. 

Quotes:

"There were moments during the negotiations when I was questioning my life choices." (Ambassador Zsuzsanna Horváth, Chair of the Fifth Committee)

"As of Thursday, 1 January 2026, 2900 UN staff posts will be abolished." (Controller Chandramouli Ramanathan)

"I thought Fifth Committee delegates and capital-level experts would be sharp enough to realize that the cuts don't resolve the liquidity crisis. They can make it worse. If the USA doesn't pay, the UN has massively less cash in 2026 than it had in 2024 and 2025. The organization could bleed out." (Ronny Patz)

"I underestimated how budget hawkish China has become, now that it pays 20% of the UN budget." (Ronny Patz)

"Unless the US announces today that they are paying their assessed contributions for 2024, for 2025, and for 2026 (or at least 1 out of 3), the UN budget adopted today will be an empty shell. Again." (Ronny Patz)

"If the USA doesn't pay, then today's adoption of the largest budget cuts in the 80 year history of the United Nations could be the best worst day the UN will have in the next 12-24 months. This would be the legacy of Guterres who gambled big time by proposing these cuts. And who would have lost his gamble." (Ronny Patz)