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The UN is facing a “severe liquidity crisis”, reaching its deepest deficit of the decade and will not have enough cash by next month to cover payrolls.
Several emergency measures have been put in place by the world organization to tide over the financial crunch.
India is among only 35 UN Member States who paid their regular budget dues in full and on time to the world organisation as of October 11, 2019. India paid USD 23.25 million in regular budget assessments by January 31, 2019, the 30-day due period specified as per UN’s Financial Regulation rules.
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“India, though a developing country, has not only settled all of its dues on time, but has also made part payment for future assessments, both for the regular and peacekeeping budgets,” India’s Deputy Permanent Representative to the UN Ambassador K Nagaraj Naidu said Friday.
“This is not easy considering the scale of our developmental needs. It would not be remiss that our assessment rates have also been growing, an increase of 13% in the latest update, Naidu said.
He said that the liquidity crisis at the UN “has been endemic; its effects have now grown to be more pronounced. Five months ago, in May 2019, we were discussing the liquidity crisis in the peacekeeping budget, today, we are discussing liquidity crisis in regular budget mandates.
Speaking at the General Assembly Fifth Committee (administrative and budgetary matters) main session on ‘Improving the Financial Situation of the United Nations’, Naidu said 27 TCCs, 17 from the Group of 77, including India, are still awaiting their legitimate reimbursements from the closed peacekeeping missions.
“Our expectation is that the problem be discussed and addressed comprehensively. We cannot indefinitely delay dues to the TCCs, while using the same funds to pay others, he said.
The UN owed India 38 million dollars, among the highest it has to pay to any country, for peacekeeping operations as of March 2019.
Naidu pointed out that Secretary-General Antonio Guterres has again used closed peacekeeping funds meant to reimburse the troops contributing countries to pay for the salaries of staff thereby contributing to a false sense of financial soundness.
“Here, we would like to remind the Secretary-General that his obligations to the TCCs are equally important as advocating to member states to meet their financial obligations,” Naidu said.
Only 131 members states have settled their regular budget assessments for the current year. While 63 member states owe US$894 million for the current year, a total of 41 countries are yet to settle their dues from the previous years, which cumulatively stands at US$310 million.