The United Nations has entered 2026 under severe financial strain, operating with a sharply reduced regular budget of $3.45 billion and preparing for widespread job cuts that will eliminate nearly one-fifth of its workforce.

The UN General Assembly approved the budget late Tuesday after protracted negotiations among the organisation’s 193 member states. While the adopted figure is higher than the $3.238 billion initially proposed by Secretary-General Antonio Guterres, it represents a significant contraction from the $3.72 billion budget approved for 2025 — a reduction of about $270 million, or 7.25 per cent.

The approved allocation applies only to the UN’s core operations, including political affairs, humanitarian coordination, human rights, and administrative functions. Separate budgets govern peacekeeping missions and specialised agencies such as UNESCO, the World Health Organisation (WHO), and UNICEF.

As part of the austerity measures, the UN will abolish approximately 2,900 staff positions beginning Friday, amounting to a 19 per cent reduction in posts. According to Assistant Secretary-General for Programme Planning, Finance and Budget Chandramouli Ramanathan, around 1,000 employees have already agreed to depart voluntarily.

“This was an extremely difficult process involving intense negotiations,” Ramanathan told the General Assembly’s Fifth Committee, which oversees budgetary matters. “That is something remarkable that you should not underestimate,” he said, referring to the consensus reached despite deep divisions among member states.

The financial crisis stems largely from unpaid dues. As of December 1, total arrears stood at $1.586 billion, including $709 million outstanding from 2024 and $877 million from 2025. UN officials have warned that delayed contributions severely limit the organisation’s ability to function effectively.

Ramanathan urged member states to remit their 2026 assessments as early as possible to stabilise cash flow and avoid further operational disruptions.

India’s assessed contribution to the UN’s regular budget stands at 1.016 per cent, calculated under a complex formula based on gross national income, population size, and other economic indicators.

Before adopting the budget unanimously, the General Assembly rejected two proposed amendments. One, introduced by Russia, sought changes to provisions related to investigations into alleged human rights violations in Syria. Another, put forward by Cuba, concerned the mandate of the Secretary-General’s adviser on the responsibility of states to protect populations from mass atrocities. India abstained on both votes.

The United States remains the UN’s largest contributor, assessed at 22 per cent of the regular budget, followed closely by China at 20 per cent. However, the organisation’s finances have been further strained by Washington’s delayed payment.

Under President Donald Trump, a vocal critic of the UN, the United States has withheld its 2025 contribution despite congressional approval, significantly worsening the cash crunch. Trump has also proposed slashing US funding for the 2026 regular budget by $610 million — a move that could undermine the financial viability of the newly approved plan if enacted.

UN officials have cautioned that sustained funding uncertainty could weaken the organisation’s ability to respond to global crises, from humanitarian emergencies to conflict mediation and development efforts.

As 2026 begins, the UN faces the challenge of maintaining its global mandate with fewer resources, fewer staff, and mounting geopolitical pressures — a test of resilience for the world’s premier multilateral institution.