Source: UN News: Wednesday, 08 July 2026 00:00 AM
The United Nations has changed decades-old “extremely complex and impractical financial rules” that required it to return money to member states that it never received. united nations General Assembly which is responsible for administrative and budgetary matters fifth committee This decision was taken on Tuesday based on the recommendations of the UN. This decision has been taken at a time when the United Nations is facing a serious cash crisis due to the delay in the mandatory contributions of the member countries. This is leading to spending cuts across the UN system, including recruitment, peacekeeping operations and humanitarian assistance. Reforms welcome Tweet URL
United Nations Secretary General Antonio Guterres Welcoming the decision after voting a statement He said that the old financial rules were “jeopardizing the stability” of the organization. He said that the General Assembly had agreed to implement the new system for a trial period of four years. Under this, unspent funds will be returned to Member States only when actual cash is available. The UN chief said that this decision will help to manage the resources of the regular and peacekeeping budget in a more responsible and predictable manner and will help to better fulfill the responsibilities assigned by the member states. ‘Very important’ for the future of the UN The Secretary-General said that this change will ensure the continuation of the work of the UN, especially peacekeeping. Very important for campaigns”. He also called it an important improvement for the next Secretary-General, who takes office in January. Now the United Nations will not be forced to return money for which it has never received payment from member states. The outstanding balance is at a record level. The Secretary-General’s latest report on the financial condition of the organization released last month Report According to the report, a record amount of $1.6 billion in mandatory contributions by member states was outstanding by the end of 2025. The total arrears related to the general budget, peacekeeping operations and two international tribunals are more than $6.5 billion. To deal with the cash crisis, the United Nations imposed strict spending limits earlier this year. The report said that the Secretary-General called on member states to either make their contributions in full on time, or leave the organization with serious financial difficulties. To save from the crisis, a request has been made to make fundamental changes in its financial rules. The hands of the United Nations are tied due to the old rules. Under the 80-year-old financial rules applicable till Tuesday night, the United Nations had to return the remaining funds to the member countries. This amount was adjusted against their future mandatory contributions. This rule applied even if the United Nations was not able to spend the money due to late payment by member states or due to it never being received.United Nations General Assembly President Annalena Baerbock told the European Parliament in February addressing This issue was raised. Referring to the UN’s “existentially threatening liquidity crisis”, he urged European countries to submit proposals to change this “extremely complex and impractical financial rule”. Broad message After the vote, General Assembly President Anna Elena Baerbock said, “Through this historic resolution, the General Assembly saved the United Nations from an imminent financial crisis and changed a 75-year-old rule that had been in place for a long time.” He said that this decision has also given a broader message that even in times of deep division, UN member states can unite and take decisive action.
