UN Faces Severe Financial Crisis: 15% Budget Cut in 2026, Staff Reduced by 18%

International Desk, PNN

The United Nations has decided to cut its 2026 annual budget by 15.1% and reduce staff by 18.8% due to severe financial constraints. UN Secretary-General Antonio Guterres cited unpaid member state contributions totaling $1.59 trillion.

The new budget for 2026 is $3.24 billion, $577 million less than the previous year. Guterres emphasized that despite the financial crisis, the UNRWA budget for Palestinian refugee aid remains unchanged, as cuts could undermine the humanitarian response in Gaza. African development funds will remain at 2025 levels.

The UN plans to eliminate 2,681 positions through restructuring and efficiency improvements. Around 18% of positions are already vacant, which are not directly related to the cuts.

High office rental costs in New York have also led to operational reductions. Two office leases will be canceled by 2027, saving $24.5 million annually from 2029. Since 2017, office closures have saved $126 million.

The budget for special political missions will fall to $543.6 million, a 21.6% reduction from the previous year. Some missions will close or have limited activity.

Experts warn that if member states do not pay dues, international peacekeeping and humanitarian programs could be seriously affected in the long term.