UN reforms budget carry‑over policy after General Assembly vote

The United Nations announced a significant reform to its budgetary carry‑over policy after the General Assembly voted in favor of a new financial rule on July 1. Secretary‑General Antonio Guterres welcomed the decision, noting that the previous rule required the organization to credit member states for any unutilised budget at the end of each fiscal year, even when no cash had been disbursed.

The new framework, set to run for a four‑year trial, stipulates that credits for unused funds will be issued only when actual cash becomes available. This change is expected to bring greater predictability to the UN’s regular and peace‑keeping budget planning, allowing for more responsible resource management and better fulfillment of member‑state directives.

Guterres, who has advocated for this adjustment since the start of his term, said the modification is crucial for the uninterrupted functioning of peace‑building missions and other core UN activities. He thanked the contributing nations for their financial commitments and called on all members to adhere to their responsibilities under the UN Charter.