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UN Slashes Budget by 7.25% and Cuts 19% of Jobs Amid Cash Crunch

The United Nations begins 2026 with a significantly reduced regular budget of $3.45 billion, a 7.25% decrease from the previous year. As part of severe belt-tightening, the organization will abolish 2,900 positions, constituting a 19% cut in jobs. The financial strain is exacerbated by member states' arrears, particularly the United States withholding its approved 2025 contribution under the Trump administration. The adopted budget followed arduous negotiations and the defeat of amendments from Russia and Cuba, on which India abstained.

Key Points: UN 2026 Budget: $3.45B with 19% Job Cuts

  • $3.45B 2026 budget adopted
  • 2,900 positions abolished
  • US withholds dues, creating crunch
  • India's share is 1.016%
  • Separate peacekeeping budget
2 min read

UN starts 2026 with shrunken budget of $3.45 billion, 19 per cent job cuts

Facing a cash crunch, the UN adopts a $3.45 billion budget for 2026, cutting 2,900 jobs. The US, a top contributor, withholds dues.

"That is something remarkable that you should not underestimate. - Chandramouli Ramanathan, UN Assistant Secretary-General"

United Nations, Jan 1

Facing a severe cash crunch, the world organisation starts 2026 with a shrunken budget of $3.45 billion and scheduled 19 per cent job cuts.

The General Assembly has adopted a budget that broadly reflects Secretary-General Antonio Guterres' proposal, but is higher than the $3.238 billion he had asked for.

This year's budget is about $270 million, or 7.25 per cent lower than 2025's $3.72 billion.

This budget covers only the main UN operations, and the budgets for the peacekeeping operations and other UN outfits, like UNESCO, the World Health Organisation, are separate.

India's share of the regular budget is 1.016 per cent based on an assessment calculated using a complex formula based on the gross national income, population and other factors.

Speaking earlier to the Assembly's Fifth Committee, which deals with the budget, Assistant Secretary-General Chandramouli Ramanathan said that as part of the belt-tightening, 2,900 positions will be abolished as of Friday, and about 1,000 employees had agreed to leave.

About the budget process that required arduous negotiations among 193 member countries, Ramanathan, the UN's top financial official, said, "That is something remarkable that you should not underestimate."

According to the UN, the arrears on December 1 were $1.586 billion -- $709 million in dues for 2024, and $877 million for 2025.

Because of this, Ramanathan appealed to member countries to send in their 2026 dues as quickly as possible.

Before the Assembly adopted the budget unanimously, a Russian amendment relating to provisions for investigations into human rights violations in Syria, and another from Cuba on the Secretary-General's adviser on the right or duty of nations to protect citizens against serious atrocities were defeated.

India abstained on both amendments.

The United States is the top contributor to the UN, assessed for 22 per cent of the budget, followed by China, responsible for 20 per cent.

The US under President Donald Trump, a vehement critic of the UN, has held back its contribution to the UN for 2025, even though it has been approved by Congress, creating a serious cash crunch.

Trump has proposed cutting US contributions to next year's regular budget by $610 million, and this could affect the viability of the budget that has been adopted.

(Arul Louis can be contacted at arul.l@ians.in)

- IANS

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Reader Comments

P
Priya S
India's share is just over 1%, which seems fair given our population and development status. But with these cuts, I hope our contributions are still used effectively. The UN needs serious reform to cut waste, not just staff. Maybe this budget pressure will force some long-overdue efficiency measures. 🤞
R
Rohit P
Interesting that India abstained on those amendments. Shows a balanced, non-aligned approach. The UN's financial crisis is a symptom of bigger geopolitical tensions. When the US and China play politics with funding, it's the smaller nations and global humanitarian work that suffer the most.
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Sarah B
As someone who has friends working in UN agencies, this news is heartbreaking. These are dedicated people working on climate change, refugee crises, and health. Losing nearly 3000 positions is a massive brain drain. The world can't afford to weaken multilateralism right now.
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Vikram M
$1.5 billion in arrears! Shameful. Countries happily take the global stage but don't pay their membership fees. The UN should have stricter rules for defaulters, maybe even suspend voting rights. You can't run a household, let alone a world body, if people don't pay their bills.
K
Karthik V
With respect, I have to offer some criticism. While the budget cuts are bad, hasn't the UN bureaucracy become too bloated over the years? High salaries, excessive travel, and overlapping mandates. This belt-tightening, though painful, might lead to a leaner, more focused organization in the long run. Hope they cut the fat, not the muscle.

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