New York: United Nations Secretary-General António Guterres has warned that the organization is entering what he described as a race toward insolvency, with the risk of running out of cash by mid-August if funding challenges persist.
According to reports, the financial situation of the United Nations has deteriorated due to delayed or unpaid contributions from some of its largest financial supporters, particularly the United States and China. The funding shortfall has placed increasing pressure on the organization’s operations worldwide.
The United States, traditionally the largest contributor to the UN budget, has reportedly withheld billions of dollars in payments. Washington has also withdrawn from several UN programs and agencies, including the World Health Organization, further affecting the institution’s financial stability.
Current estimates indicate that the United States owes nearly $4 billion in outstanding contributions to the United Nations. The delayed payments have become a major factor behind the organization’s ongoing budgetary challenges.
China, the second-largest contributor among member states, has also contributed to the funding strain through delays in meeting its financial obligations. Although Beijing recently paid approximately $850 million, reports suggest that around $455 million remains outstanding.
The United States and China together account for roughly 42 percent of the UN’s core funding. Any disruption in contributions from these two countries can have significant consequences for the organization’s ability to maintain global operations and fulfill its mandate.
As a result of the financial crisis, around 3,000 jobs have reportedly been eliminated, and several offices have been closed. Peacekeeping missions have also been affected, while payments to countries providing troops for UN operations have been delayed, raising concerns about the future effectiveness of international peace and humanitarian efforts.
