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UN May Run Out Of Funds By Month-End, Warns Guterres

United Nations: UN Secretary-Basic Antonio Guterres has once more sounded a warning that the world organisation is dealing with a monetary crunch and will run out of funds by the tip of this month.

With solely 128 of the 193 member nations having paid their dues in full as of October 3, he has reportedly warned UN staffers that the organisation confronted a shortfall of $230 million.

The UN’s common finances for the 12 months is $5.four billion and it’s separate from the peacekeeping finances of $6.5 billion.

India paid up its $23.25 million dues for the common finances on January 30 itself, one of many few nations to pay up on time.

If the funds don’t circulate on this month from extra of the nations in arrears, the UN will seemingly proceed its operations by dipping into its working capital fund briefly.

One of many causes for the shortfall is the US, which funds 22 per cent of the UN’s common finances amounting $674 million, not having paid up in full to this point.

As a result of members don’t ship of their dues originally of the 12 months and the funds trickle in, the UN faces periodic finances crises.

The variety of nations paying in full has fallen considerably this 12 months in comparison with earlier years.

Solely 127 nations had despatched of their contributions this 12 months by the tip of September in comparison with 141 final 12 months.

Guterres had instructed the Basic Meeting’s finances committee in Might, “We are at a tipping point and what we do next will matter for years to come.”

“Despite numerous efforts to contain expenditures this year, we are likely to run out of cash in August and, therefore, borrow from the Working Capital Fund,” he had warned, however the UN managed to coast alongside until now.

Guterres wrote to member nations in July final 12 months when its finance went right into a disaster mode, “An organization such as ours should not have to suffer repeated brushes with bankruptcy.”

The UN has a separate finances for peacekeeping operations, which additionally operates persistently in a deficit mode.

As India’s Everlasting Consultant Syed Akbaruddin has repeatedly identified, this impacts the nations contributing troops to UN peacekeeping operations which might be owed tens of millions to offset their bills and salaries of the peace-keepers.

Whereas India can take in the delay, it will possibly badly harm smaller nations like Nepal and Rwanda.

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