UN Chief Proposes $ 3.6 Billion Budget for 2025, Highlights Peace, Development and Reforms

By R Anil Kumar

• United Nations Secretary General Antònio Guterres on October 16, presented a $ 3.6 billion budget proposal for programmes in 2025,  highlighting the Organisation’s commitment to peace, sustainable development and human rights initiatives, while advancing key reforms

UNITED NATIONS, New York, October 21.  United Nations Secretary General Antònio Guterres has said that the proposal for UN’s regular budget comes with a sense of urgency, amid multiplicity of challenges.

Outlining his proposal at the UN General Assembly’s Fifth Committee – the forum for administrative and budgetary matters, Guterres said ” In a context of major global shocks, the United Nations is more needed than ever.”

The proposal reflects the priorities set out in the recent landmark agreements, he emphasised, citing the Pact for the Future and its annexes, the Global Digita Compact and the Declaration on Future Generations.

All these represent a commitment towards updating and reforming international cooperation to make it more networked, effective, fair and inclusive, Guterres said

The Regular Budget encompasses UN programmes spanning various domains-Political Affairs, International Justice and Law, Regional Cooperation for development, Human Rights and Humanitarian Affairs and Public Information.

UN maintains a separate Budget for Peacekeeping Operations, which follows a fiscal cycle from July 1, to June 30, while the Regular Budget alligns with the calendar year.

BUDGET HIGHLIGHTS: Excluding the Special Political Missions (SPMs), the proposed Budget for 2025 includes a total of 10,494 posts representing a net increase of 115 posts, for new and strengthened mandates.

$711 million is proposed for SPMs reflecting a $ 31 million decrease due to the discontinuation of field operation in Sudan (UNITAMS) and the investigation team in Iraq (UNITAD).

$711 million is proposed for SPMs reflecting a $ 31 million decrease due to the discontinuation of field operation in Sudan (UNITAMS) and the investigation team in Iraq (UNITAD).

The Budget proposal also includes, among other programme, $ 50 million for Peacebuilding Fund, to address ongoing funding gaps; an increase of $ 8 million for the UN Human Rights Office (OHCHR), to support regional initiatives; and an additional $ 8.3 million to support the work of the Independent Institution on Missing persons in Syria.

The proposed Budget further includes $ 3.5 million in additional humanitarian resources for the crisis Gaza, including an increase of $ 2.5 million for the UN Relief and Works Agency(UNRWA), a lifeline for the Palestine refugees.

The 2025 Budget proposal also includes measures to place the System-wide Evaluation Office on firmer footing with Regular Budget (RB), alongside a $ 2 million increase for the Office of Internal Oversight Services (OIOS) and the Ethics Office to bolster capacities.

FOCUS ON DEVELOPMENT: Sustainable development remains a core priority, with an increase of about $ 4.5 million, marking the sixth consecutive annual increase.

The Regular programme of Technical Cooperation (RPTC) will receive a $ 2 million boost, and an additional $ 500, 000 is proposed for technical assistance and advice to Nations on the 2030 agenda for Sustainable Development and African Union’s Agenda for 2063.

The proposal also includes an increase of $ 1 million for the development account to enhance targeted, Country level support.

Mr. Guterres also highlighted the Chronic funding shortfall, facing the Resident Coordinator

System, and the need for a Sustainable and Predictable  funding mechanism, through partial RB financing.

LIQUIDITY CHALLENGES: Mr.Guterres concluded by urging Member States to fulfil their financial obligations in full and on time, stressing that the UN’s ability to meet its mandates depends on the availability of funds.

He explained that the UN started the 2024 with only $ 67 million in cash,  down from the $700 million the previous year, making it extremely vulnerable to adverse changes in payment patterns of assessed contributions.

To stave off implimentation constraints next year, Guterres proposed that the General Assembly temporarily suspend the return of credits for 2023 against the 2025  assessment. The Credits would be held in a reserve and released as conditions improve.

Ultimately the effectiveness of programme delivery and use of financial resources in 2025 will depend on the availability of cash, he said.

UN BUDGET DISCUSSION: Over the next few weeks the Fifth Committee will discuss the proposal, including with heads of UN Secretariat Departments and Senior Programme Managers.

The Committee will then present its Report with recommendations to the UN General Assembly plenary for approval of the UN BUDGET by the end of December, 2024.