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UN Faces Worst Budget Deficit in a Decade, Threatening Staff Payments

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 10 October 2019.

The United Nations is facing its worst budget deficit in a decade, threatening operations in its main hubs, including New York, Geneva, Vienna, and Nairobi.

According to a statement on the UN website, the organization may not have sufficient funds to pay its staff in November, citing a severe budget deficit.

UN Secretary-General António Guterres warned Member States earlier this week that vacant posts cannot be filled, travel will be limited to essential travel only, and meetings may have to be canceled or deferred.

Despite taking drastic steps to save money and cut spending, the UN is still facing a significant budgetary gap, with the US being one of the countries that has not paid 22% of the annual budget.

The US owes $674 million (approximately Ksh.68 billion) for this year's budget, with President Donald Trump having previously complained that Washington bears too great a responsibility to the UN budget and called for reforms.

Only 129 of the 193 countries have already paid their fees for this year, leaving the UN at risk of depleting its liquidity reserves by the end of the month and defaulting on payments to staff and vendors.

The UN regular budget funds political, humanitarian, disarmament, economic, and communication projects, while the UN peacekeeping budget is funded separately.

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