UN Budget Cuts and Reform Proposals Sent to ACABQ for Review
The United Nations has submitted revised budget estimates to the Advisory Committee on Administrative and Budgetary Questions (ACABQ), proposing a 15.1 per cent reduction in resources and an 18.8 per cent cut in posts in the regular budget compared with 2025. The support account for peacekeeping operations, which underpins missions worldwide, would also see reductions in the 2025/26 period.
The ACABQ, a subsidiary body advising the General Assembly, will assess the proposals before forwarding its recommendations to the Fifth Committee, where all 193 Member States decide on administrative and budgetary matters.
Targeted Reductions
In a letter to Member States, Secretary-General António Guterres explained that the cuts followed an extensive review of mandate delivery and resource allocation. Stressing that reductions were “targeted, not across the board,” he said they had been carefully calibrated to maintain balance across the UN’s three pillars—peace and security, human rights, and sustainable development.
Programmes that directly support Member States—particularly least developed, landlocked, and small island developing States—along with Africa’s development advocacy, the Peacebuilding Fund, and the Resident Coordinator system, will be shielded from reductions. Regional economic commissions will see only modest adjustments, while the Regular Programme for Technical Cooperation will continue to expand to strengthen capacity-building for developing countries.
“Reductions of this magnitude will entail trade-offs,” Guterres wrote, noting possible impacts such as narrowed scope, longer timelines, or reduced frequency of outputs. Mitigation measures will include prioritising high-impact work, pooling expertise, and relying more on virtual platforms and automation.
Reform Measures Under the UN80 Initiative
The budget revision is closely tied to the UN80 Initiative, launched in March 2025 to strengthen the Organisation amid rising global political and financial uncertainty. Alongside the cuts, the revised estimates introduce the first set of proposals under Workstream 1, focused on management and operations.
Key measures include:
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Establishing administrative hubs in New York and Bangkok.
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Consolidating payroll into a single global team across New York, Entebbe, and Nairobi.
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Relocating some functions from high-cost duty stations (New York and Geneva) to lower-cost locations.
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Vacating two leased New York buildings by 2027, with projected annual savings from 2028.
Collectively, these reforms aim to cut duplication, enhance quality, and protect mandate delivery while improving efficiency.
Three Workstreams of Reform
The UN80 Initiative is structured around three workstreams:
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Efficiencies and management improvements – now reflected in the revised estimates, with further measures to come.
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Mandate Implementation Review – a report submitted in August is under review by a new Informal Ad Hoc Working Group, meeting on 16 September.
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System-wide realignments – proposals on structural and programmatic clusters will be presented later this week.
Together, the workstreams signal a major reorientation of UN operations, aimed at ensuring effectiveness, credibility, and sustainability.
Next Steps and Staff Engagement
The ACABQ will begin hearings this week before passing its recommendations to the Fifth Committee, with a final General Assembly decision expected by December. If approved, changes would be phased in starting 2026, with future budget cycles reflecting additional reforms from the UN80 workstreams.
In a separate letter to UN staff, Guterres acknowledged that the changes will affect daily work and professional life but pledged full support throughout the transition. “You will be fully engaged and supported throughout the process,” he assured, promising regular communication, consultation opportunities, and practical guidance.
Acknowledging the difficulty of the decisions, the Secretary-General emphasised accountability—beginning with him, but also extending to managers and staff. He urged that reforms be carried out with fairness, empathy, and professionalism, underscoring the shared responsibility of upholding UN values during the transition.