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UN Itself in crisis, Bangladesh at the helm

$6.6 billion in arrears, budget cut by 9.2 percent—Khalilur Rahman faces tough reform test

Published : Monday, 21 September, 2026 at 12:46 AM

Mamunur Rashid, New York

The United Nations, the world’s foremost international institution for peace, security, human rights and development, is facing deep financial pressure.

Delays in receiving assessed contributions from member states, mounting arrears and funding shortages have forced the organization to pursue spending cuts and structural reforms. Staff numbers and expenditures on various activities are being reduced.

At this critical juncture, Bangladesh’s Khalilur Rahman has assumed the presidency of the 81st session of the UN General Assembly. His leadership therefore comes at a time when the role of Bangladesh is gaining significance in efforts to make the United Nations more effective and restore confidence in the organization.

According to the June 2026 progress report of the UN80 Initiative, arrears in assessed contributions to the UN Secretariat stood at $3.4 billion in 2022. By April 2026, the figure had risen to $6.6 billion—an increase of nearly 94 percent in four years. The arrears include contributions related to both the UN regular budget and peacekeeping operations.

The financial crisis has had a direct impact on the UN budget. The General Assembly approved a regular budget of $3.45 billion for 2026, about 7 percent lower than the approved budget for 2025.

At the same time, the organization decided to eliminate 2,900 posts at the beginning of 2026. More than 1,000 staff members had already completed the process of leaving their jobs.

A senior UN Secretariat official responsible for management, strategy, policy and compliance said at a briefing in July that the Secretariat’s budget had been reduced by 9.2 percent in 2026.

However, there are no plans for another cut of the same magnitude in the 2027 budget. According to the official, the central issue behind the UN’s financial crisis is the failure of member states to pay their assessed financial obligations on time.

The UN’s financial difficulties, however, are not solely the result of unpaid contributions. The UN80 Initiative’s documents state that the regular budget is facing a serious liquidity crisis, with the failure of member states to pay their assessed contributions fully and on time being one of the principal causes. The decline in voluntary funding and financial difficulties facing peacekeeping operations have further complicated the situation.

To address the crisis, the General Assembly took an important financial decision in June. Then-General Assembly President Annalena Baerbock said the decision would relieve the organization of pressure to return more than $900 million from peacekeeping operations and around $400 million from the regular budget to member states. She made clear, however, that the decision did not address the root causes of the UN’s financial problems. Timely and full payment by member states remains essential to a long-term solution.

Against this backdrop, the 81st session of the UN General Assembly began on September 9. Bangladesh’s Khalilur Rahman assumed the presidency of the new session. After taking office, he emphasized the need to make the United Nations fit for the future. His declared theme for the year is: “Restoring trust, managing transformation: A United Nations that delivers for all.”

According to the United Nations, Khalilur Rahman’s priorities include peace and security, sustainable development, climate, human rights and humanitarian assistance, digital governance and UN reform. Advancing reform amid the organization’s financial difficulties is therefore emerging as one of the major tests of his presidency.

Under the UN80 Initiative, efforts are being made to reduce administrative costs, eliminate duplication of work, improve efficiency and prioritize the use of limited resources. As part of the process, the work and structures of various departments are being reviewed. At the same time, there is discussion over the impact of staff reductions on different UN activities. Senior UN officials have said the objective of the reforms is to make the organization more effective while operating with limited resources.

There has also been some progress in the collection of assessed contributions. According to the latest information from the UN Committee on Contributions, as of September 16, 140 of the 193 member states had fully paid their assessed contributions to the 2026 regular budget. The remaining 53 member states had yet to pay their full assessed contributions for the year.

-AAH