Quinta Comisión, 4ª sesión plenaria, Asamblea General, 80° período de sesiones Asamblea General Date: 9 October 2025 Language: English Transcript: https://transcripts.un.org/es/ga/c5/80/4?lang=en Transcripts available through this tool are created by using automatic speech recognition and are not official records nor official documents of the United Nations. Official records and official documents are available on the Official Document System of the United Nations. --- Hungary · Chair [0:02]: I call to order the fourth meeting of the Fifth Committee at the 80th session of the General Assembly. Distinguished delegates, it is my distinct honor to welcome Her Excellency, Ms. Annalena Baerbock, President of the 80th session of the General Assembly to the Fifth Committee this morning. We are grateful to have you with us, Ms. President. I would like to give the floor to Her Excellency, Ms. Annalena Baerbock. to address the committee. Your Excellency, you have the floor. GA · PGA [0:34]: Good morning, everybody. Your Excellency, Ms. Susanna Horvath, Permanent Representative of Hungary and Chair of the Fifth Committee, Under-Secretary-General, Ms. Catherine Pollard, Excellencies, distinguished guests. Allow me to begin with warm congratulations to the Chair and the members of the Bureau on their election, and by wishing you every success as you assume these important responsibilities. The work of the Fifth Committee is central to the effective functioning of our organization. It is here that decisions are taken on funding, on management, and on human resource policy. Even in normal times, this committee carries a special responsibility, ensuring that the United Nations has the resources it needs to operate. That responsibility takes on greater urgency today in an era of budgetary constraint. However, as I said at the general debate, this is not an ordinary session. Our house of dialogue and diplomacy needs a renovation. Our house is also under heavy pressure. We are literally at a crossroads, a make or break moment, politically and financially. This is why the UN Aid Initiative and the wider reform process are not luxury, but necessities. We have to deliver a United Nation that is agile, cost effective, and fit for purpose. The program budget before you includes the revised estimates linked to this initiative. These proposed budgets are a critical first step in advancing the goals of the UNADA initiative to revive the efficiency and the credibility of this institution. I encourage all delegations to approach the committee's deliberation as well as the wider processes of the 80th session in a constructive manner. I also remind you the commitments we made in the resolution on General Assembly revitalizations, to review working methods during the session and to submit concrete proposals to the General Committee on how to make our work more efficient and effective. I have likewise encouraged the other thematic committees to think carefully before simply repeating resolutions and working methods of the past. Instead, we should ask ourselves each time, does this paragraph still make sense in our times, or do we have more efficient methods and technologies? Drafting resolutions is not a just copy and paste exercise. We have to ask ourselves, especially if we call for another SG report, when so many are not even funded, if we need another one, which will not be funded and therefore implemented in the end. Excellencies, on the other hand, I would like to strongly underline that it's not only an exercise in cutting cost, but an exercise in doing better together. The reason for this reform is to make our organization fit for the future, fit for purpose. And the purpose is clear. It's defined in our charter, serving humanity by delivering on peace and security. and also delivering on sustainable development, human rights, and justice, as they are highly interlinked. Without delivering on the 2030 agenda on the SDGs, lasting peace will never be reached. So amid all the discussions and even disputes over commerce, numbers, and cuts, Let us not lose sight of our larger responsibility, especially in this committee. For those of us, and I hope all of us, who believe in the Charter or, like myself, have sworn the oath to our Charter, our duty goes in these times and days beyond finalizing the budget. It is to ensure that the budget, first and foremost, serves always the Charter, our principles, and makes the work of our United Nations possible. If we are saying we are at a crossroads, this is now the moment to take the right decisions. To do otherwise, to cut just for cutting's sake, was not considering the results of some of the cuts. That would also mean shredding the very principles and functions of this organization. Excellencies, as we also know, the financial health of the organization goes beyond the 2026 budget. The liquidity crisis has been years in the making. A sustainable solution requires that aforementioned reforms and budget adjustments, but it also requires that member states meet their obligations in full, on time, and without conditions. When contributions are delayed or withheld, the United Nations is weakened and risk paralyzes. It cannot deliver on its principles. With practical and sometimes dramatic consequences on the ground. We can see it with our own technique here in the room, but the consequences around the world are even heavier. So cutting funds to the World Food Program means literally that people go hungry to bed or people starve. Halving the budget of peacekeeping missions could impair the mission itself, fueling the risk of renewed conflict. In the end, it all comes down to this: We either make it together or we suffer alone. The good thing, the Fifth Committee's long tradition of consensus is the embodiment of the theme of this session, better together. Your ability here to reach across the aisles and find common ground is a testament to your dedication and leads to strong and lasting results. This is the heart of diplomacy. This is the heart of compromises and consensus. We all know this session will not be easy. It's an extraordinary session. But I encourage you to redouble your commitments to this tradition of finding compromises, to show that the world wants to see that the United Nations is still capable of reforming itself, that the United Nations is possible of working together, of delivering results even in the most difficult circumstances. So no pressure, even though the whole world is watching. But yes, we have to finalize the budget in the remaining last weeks, and it's still some months. I wish you the very best to hit the ground running and encourage you to make the most of each day of this session, especially now in autumn fall season. I remain at your disposal to support you at any time and of any help if you need. not only to reach a hard-won consensus, but also for the sake of finishing in time so everybody could also enjoy December holidays. I thank you. Hungary · Chair [8:27]: On behalf of the committee, I would like to thank Her Excellency for her remarks. As the President has informed me of her other commitments, I should like, on behalf of the committee, to thank her once again for her presence here with us. I would like to pause for a few moments to enable changes to the seating at the podium, so that we may begin the next item on our agenda. Speaker 4 [9:17]: It's like, I don't. Know what it's up to? Hungary · Chair [10:36]: I invite the Committee to begin its consideration of agenda item 138, entitled "Improving the Financial Situation of the United Nations." It is my pleasure to welcome to the Committee the Under-Secretary-General for Management Strategy, Policy and Compliance, Ms. Catherine Polat, as well as the Assistant Secretary-General, Office of Program Planning, Finance and Budget and Controller, Mr. Chandru Ramanathan. I now invite the Under-Secretary-General to make a statement on the present financial situation of the United Nations. Please note that the copy of the presentation of Ms. Pollard will be uploaded to the public website of the Fifth Committee. Ms. Pollard, you have the floor. UN Secretariat · USG Management Strategy, Policy and Compliance [11:20]: Madam Chair, Excellencies, distinguished delegates, good morning to you all. Thank you for this opportunity to present to you the current financial situation of the United Nations. The Secretary-General continues to actively engage with Member States on the liquidity situation of the Organization, which unfortunately has not improved since my last briefing to the Committee. I will focus first on the regular budget and then cover the financial situation of peacekeeping operations and the international tribunals. As mentioned by the Chair, the presentation and my statement will be made available on the website of the Fifth Committee. So we start with the regular budget. As you can see from chart one, monthly regular budget collections continue to fluctuate each year, making it difficult to plan the implementation of the budget efficiently or effectively. This year, we collected $67 million less than we anticipated in the first quarter and $160 million less than anticipated by the end of the second quarter. Due to large collections received in September, for the first time this year, we ended the third quarter ahead of our collection forecast. We collected $185 million more than anticipated by the end of September. However, collections in this, the last quarter of the year, remain uncertain. In August, we had to borrow the full amount of the Working Capital Fund. We anticipate that we will need to borrow from the Special Account in this month, leaving us only the surplus cash in the closed tribunals, which the General Assembly has approved as a last liquidity buffer. We now anxiously await the outcome of the fourth quarter. As we have said on several occasions in recent years, predictability in the timing and amount of collections is critical for managing the organization's cash outflows and to plan spending properly and safely without risks of payment defaults. We therefore appeal to member states to commit to paying earlier and to communicate their plans for payment as early as possible. The more confident we can be about collections, the greater our ability to commit funds when we need them for program delivery. As shown in chart two, stringent cash conservation measures have been effective during the last few years in increasing liquidity to ensure business continuity and reducing the risk of disruptions through exhaustion of our reserves. During these years, we have delayed borrowing until later in the year. The first borrowing occurred in May in 2018 and then in July in 2019. Since then, we have pushed back first borrowing until September in 2020 and in November in 2021 September in 2022, August in 2023, September in 2024, and this year in August. While we managed to stay within our liquidity reserves in 2022 and barely avoided borrowing from the closed tribunals in 2023, we were forced to borrow from the closed tribunals in 2024. Current indications that we may have to borrow from the tribunals once again this year. In order to fully execute the 2025 budget, we would require about $3,530 million. However, liquidity in 2025 has been and will remain challenging because we started the year without our full liquidity reserves and we returned $89 million in credits. Based on a somewhat optimistic scenario for collections, our cash conservation target was initially set at around $400 million. Comparatively, last year, the similar target was $345 million. However, in early March, we had to increase the cash conservation target to about $600 million based on a reassessment of our forecast for collections. Chart 3 shows the cash resources available on 30th September and 31st December of last year and on 30th of September this year. Last year, we borrowed the full amount from the Working Capital Fund in September and from the Special Account in October. We almost exhausted the regular budget liquidity reserves. This year, We borrowed the full amount from the working capital fund in August and risk exhausting the special account in October. This year, we collected about 66.2% of the year's assessment by 30th September, compared with 78.1% this same time last year. If collections in the fourth quarter of this year do not significantly pick up, we could end 2025 with a cash deficit that would exacerbate liquidity pressures into 2026. Last year, we ended the year with a smaller cash deficit of $135 million compared with 2023 after collecting 102.9% of the year's assessments. Chart 4 summarizes the status of regular budget assessments as of 30th September since 2021. In 2025, assessments were $276 million above the level in 2024. By 30th September of this year, we received $192 million lower than the same period in 2024. Approximately $2.4 billion was collected by the 30th of September 2025, and of this amount, $52 million relates to the delayed receipts of outstanding contributions. This chart also reflects a continuing increase in unpaid assessments as of 30th September for the last four years, indicating a worrisome trend. Collections in the final quarter remain critical for the outcome of 2025. We do hope that collections will increase as large arrears deplete the liquidity reserves. 136 Member States have paid their regular budget assessments in full by 30 September 2025, compared to 141 Member States as of 30 September 2024. Chart 5 shows the number of Member States paying in full at the year end. The number of fully paid Member States has lagged behind last year's count so far this year, but we hope that collections will increase in the last quarter and that we can exceed the 2021 record of 153 Member States paying in full by year end. We would also like to again thank the 12 Member States that have made advance payments to the 2025 regular budget. We welcome any Member State that is interested in making an advance payment, and we stand ready to provide those estimates. Chart 6 lists the 136 Member States that have paid their assessed contributions in full. I would like to thank those Member States for their regular budget contributions. Since the cut-off date, Central African Republic, Guinea, and the Islamic Republic of Iran have also paid their assessments in full, bringing the count of fully paid Member States to 139. Chart 7 shows the 57 Member States who are yet to pay their assessments to the regular budget in full as of 30 September 2025, five more than in September last year. Chart 8 provides a comparative view of the largest outstanding assessments for the regular budget as of 30 September 2024 and 2025. I will now turn up to the peacekeeping operations. As you know, peacekeeping has a different financial period from the regular budget that goes from 1 July to 30th June, rather than the calendar year. Chart 9 shows the status of peacekeeping assessments and collections by September for the five most recent fiscal years. Total payments and credits in the last four fiscal years have ranged from $2.5 billion to $2.8 billion. This year, we have collected only $1.4 billion. That is significantly lower than the last four years. As shown in chart 10, on 30 September 2025, 54 member states have paid all peacekeeping assessments in full. This was five less than on 30 September 2024. I would like to pay tribute to these Member States for their efforts. Since the cut-off date, the Central African Republic, Croatia, Lithuania and the United Kingdom have also paid their assessments in full, bringing the count of fully paid Member States to 58. Chart 11 provides an overview of outstanding amounts for each peacekeeping operation. As seen in the chart, the $3.7 billion outstanding on 30th September 2025 comprises $3.2 billion owed for active missions and $483 million for closed missions. For active and closing missions, out of $3.2 billion, $1.8 billion relates to 2025-26 assessments, and over $1.4 billion relates to assessments in 2024-25 and prior years. Chart 12 shows the unpaid peacekeeping assessments as of 30 September 2025 for Member States. The chart also lists outstanding amounts from these Member States as of 30 September 2024. Before moving on to the next chart, I would like you to recollect that in its resolution 73/307, the General Assembly decided that the Secretary-General should issue assessments for peacekeeping operations for the full budget period for which scales of assessment are available, including the period for which the mandate has not yet been approved by the Security Council, with the understanding that the advance assessment will be considered due within 30 days of the effective date of the renewal of the mandate. Chart 13 shows the impact of this General Assembly decision. In July 2025, $2.6 billion was assessed for peacekeeping operations, for the non-mandated period through 30 June 2026. This chart shows the amounts paid voluntarily by Member States against these assessments. Together with the General Assembly decision in resolution 73/307 to remove the restriction on cost borrowing of cash for active missions, the assessment and collection for non-mandated periods has assisted with the overall liquidity which in turn has helped to settle the dues to troop and police contributing countries. Chart 14 shows those Member States that have paid in full for the period to 30 June 2026, including the non-mandated period. I would like to thank these 18 Member States for their additional payments to all peacekeeping operations. As chart 15 shows, As of 30 September 2025, the liabilities to Member States for troop and foreign police units have been settled in full, while liabilities for contingent-owned equipment for active missions amount to $333 million. The total liabilities for contingent-owned equipment amount to $30 million for closed peacekeeping operations, where these are pending settlement only because we are awaiting instructions from the respective member states. This is the first time in several years that we have outstanding contingent-owned equipment claims in September. Chart 16 shows the breakdown of the overall amount owed for contingent-owned equipment to member states as of the 30th of September 2025. The Secretary-General is committed to meeting obligations to Member States providing troops and equipment as expeditiously as possible, as the cash situation permits. I would like to reassure you that we monitor the peacekeeping liquidity situation continuously and attach high priority to maximizing the quarterly payments based on the available cash and data. In order to do so, we also depend on the expeditious finalization of memoranda of understanding with contingent-owned equipment contributors. As requested by the General Assembly in resolution 73/307, quarterly briefings are being organized for member states on the status of these reimbursements and the actions taken for timely settlement. Moving on to international tribunals, Chart 17 provides details on the situation of the tribunals. As seen in the chart, the total contributions outstanding for the tribunals as of 30th September 2025 are $65 million. This includes amounts outstanding for ICTR that was last assessed in 2016, and for ICTY that was last assessed in 2018, and the most recent assessment for the MICT in 2025. Chart 18 shows the overall situation as of 30 September 2025, where 113 Member States have paid their assessed contributions in full for all the tribunals, which is three less than on 30 September 2024. Since the cut-off date, the Central African Republic, and Panama have also paid their tribunal assessments in full, bringing the total count of member states to 150. I would like to thank all Member States for their financial support to the Tribunals and urge those Member States with pending assessments to complete their payments as soon as possible. Chart 19 provides the breakdown of unpaid Tribunal assessments as of 30 September 2025, with the largest contributions outstanding. For comparison purposes, The chart also lists amount outstanding from these member states on the 30th of September 2024. Chart 20 shows the month-by-month position of the overall cash balances for the tribunals over the last three years. As per General Assembly resolution 76272, the surplus cash in closed tribunals may be used for liquidity of the regular budget, if needed, from January 2023. The ability to borrow from closed tribunals has been a critical measure in mitigating the negative impact of liquidity shortages for regular budget operations, both in 2023 and in 2024. For 2025, we are also counting on this surplus available cash. In conclusion, chart 21 summarizes the status of assessments and unpaid assessments for each of the three categories of operations at the end of the last two years, as well as at the end of the third quarter for comparison purposes. Unpaid assessments for all categories are higher compared with a similar period last year. The chart also provides an overview of the evolution of the cash situation for all three categories of operations, as well as the evolution of the outstanding payments to troop and police contributing countries for peacekeeping operations. As of 30th September 2025, the outstanding payments to member states amounted to $363 million, of which $30 million is awaiting instructions from Member States. Chart 22 gives you the very latest information on payments as of today, 9 October 2025. 46 Member States have paid all of their assessments in full. On behalf of the Secretary-General, I would like to express my deep appreciation to these Member States. As always, Madam Chair, The financial health of the Organization depends on Member States meeting their financial obligations in full and on time. The full and efficient implementation of our programme of work depends on the financial support of Member States through adoption of realistic budget levels and providing timely contributions to ensure a stable and predictable financial situation throughout the year. For our part, the Secretariat is committed to using the resources entrusted to it by Member States in a cost-effective and efficient manner and to provide information to Member States with full transparency. I would like to take this opportunity to express my gratitude to Member States for heeding the Secretary-General's repeated call for predictable and timely payments to be able to improve the financial situation of the United Nations. Thank you, Madam Chair. Hungary · Chair [31:29]: I thank Ms. Pollard for updating the Committee on the financial situation of the United Nations. In accordance with established practice, the statement of the Under-Secretary-General will be issued shortly as a report of the Secretary-General on the financial situation of the United Nations. The general discussion on this item will be held during the formal meeting on Wednesday, 22nd October at 10:00 a.m. I would like to pause for a few moments to enable changes to the seating at the podium so that we may begin the next item on our agenda. I now invite the Committee to continue its consideration of agenda item 136 entitled Proposed Programme Budget for 2026, in particular the question of the financial performance report on the programme budget. In this connection, I invite the Assistant Secretary-General Office of Program Planning, Finance and Budget and Controller, Mr. Chandru Ramanathan, to introduce the financial performance report of the Secretary-General on the program budget for 2024, contained in document A/80/89. Mr. Ramanathan, you have the floor. UN Secretariat · ASG and Controller [34:27]: Good morning, Chair, distinguished delegates. Happy to see you again, and we'll see a lot of each other today. in the afternoon as well. I have the honor to present the financial performance report on the program budget for 2024. The report has been prepared in line with General Assembly resolution 72/266A. The final expenditure in 2024 amounted to $3,361.2 million. This is $254.5 million less than the approved appropriation. This under expenditure comprised 194.9 million for regular budget entities and 59.6 million under special political missions. We also collected $20.3 million more than the estimates in income, mainly due to higher income from bank interest and miscellaneous income. The $298.9 million of credits returnable to member states also includes $25.5 million relating to the cancellation of prior period commitments. Madam Chair, distinguished delegates, a new high of $859 million in arrears at the end of 2023 left us with only $67 million in cash. in liquidity reserves at the beginning of 2024. A credit return of $114 million exacerbated the cash shortage. Executing the full budget would have resulted in a payment default by August. So, a $355, sorry, a $350 million cash conservation target was established in January 2024 to avoid the default, uh, to the default. But we kept adjusting the collection forecast periodically. The forecast in January was 94.7%. We increased it to 97.5% in May and 99.8% in November. The final collection was 102.9% of 15.2% sorry, it was 102.9% of which 15.2% or 490 million was collected only in December. Spending was monitored closely throughout the year to adapt to the changes in the collection forecast. And as Ms. Pollard just mentioned a few minutes ago, we had to borrow from the working capital fund and the special account, but we ended the year also borrowing from the closed tribunal account. In fact, we almost ran out of cash in December. But the large collections in December were used to repay the loans to the closed tribunal and the special account, but we could not repay the working capital fund. In summary, because we collected $93 million more than the assessment for the year, but we spent $255 million less than the budget, we closed the year with a smaller cash deficit compared to the beginning of the year. but we still ended the year 760 million in arrears. The return of the unspent balance of 255 million and about 45 million of other credits would seriously affect the organization's ability to fully implement the program budget for 2026 unless arrears are sufficiently reduced or the return of credits is suspended. This report in front of you includes a proposal requesting the General Assembly to temporarily suspend the return of credits of 298.9 million after apportioning it amongst member states and placing them in a reserve that can be used if collections in '26 are insufficient to enable the full implementation. When the General Assembly decides that the liquidity situation has improved sufficiently, these credits will be returned promptly to member states. With increasing arrears and depleted liquidity reserves, this measure, I would like to emphasize, becomes imperative for the Organization to continue delivering on its programme of work during 2026. And this afternoon's briefing on the financial situation, which I will provide, will go into the details of the challenges and the potential impact, so that you have a background for a decision on this particular report. Madam Chair, distinguished delegates, we look forward to the discussion of this report. Thank you. Hungary · Chair [39:28]: I thank Mr. Ramanathan for his introduction. I now invite the Vice-Chair of the Advisory Committee on Administrative and Budgetary Questions, Mr. Udo Fenschel, to introduce the related report of that committee as contained in document A/AT/7/Add.1. Mr. Fenschel, you have the floor. ACABQ · Vice-Chair [39:52]: Thank you, Madam Chair. Good morning, distinguished delegates. I hope this will not be too anticlimactic to what we've just heard from the Controller. But I'm pleased to introduce the report of the Advisory Committee on the Financial Performance Report on the Program Budget for 2024. The Committee recalls that the General Assembly requested the Secretary-General to conduct a comprehensive review of the annual budget cycle and to submit a report for consideration by the Assembly at the main part of its 83rd session. The Committee trusts that the budget performance and the performance report will be central elements in the assessments and considerations under the comprehensive review. The Committee also trusts that a detailed assessment of the impact of the annual budget cycle on the liquidity situation, compared with the biennial budget, will be conducted and that an update will be provided in the context of the next report of the Secretary General on improving the financial situation. Regarding the proposal for the temporary suspension of the return of a net surplus of almost 299 million U.S. dollars as a credit against the assessment to member states for 2026, the Committee reiterates that this is a matter within the purview of the General Assembly. Final expenditure for 2024 amounted to 3.36 billion U.S. dollars. or 92.6% compared with the appropriation approved by the General Assembly. The total expenditure of the equivalent amount includes unliquidated commitments amounting to $81.5 million, or 2.3% of the appropriation. Canceled prior period commitments amount to $25.5 million, comprising 12.6 million U.S. dollars of commitments in regular budget entities and 12.9 million U.S. dollars in special political missions. The Committee reiterates that detailed information with the justifications for the cancelled prior period obligations for each budget section and by object of expenditure should be included in future performance reports. The Advisory Committee notes that cost recovery activities have been growing steadily over the past few years. With the request for more efficiency and the UNAT initiative, it is expected that cost recovery will further grow in volume and complexity, while the cooperation with agencies, funds, and programs will also bring about more cost recovery or cost sharing that will need to be monitored centrally. The committee looks forward to deliberating on the comprehensive report on cost recovery with a view to improving the management of the cost recovery fund and enhancing the compliance with the cost recovery guidelines and accountability for noncompliance. Madam Chair. With the respect to presentation of the financial performance report for 2024, the committee notes that while the financial performance reports present expenditures and variances against initial appropriations, they do not propose a final appropriation. The Committee reiterates its concern that the absence of such information prevents the General Assembly from approving related transfers in accordance with Financial Regulation 5.6, particularly in cases of overexpenditure without authorization. The Committee is further concerned that treating the initial appropriation as the final budget without reflecting actual performance departs from established budgetary methodology and practice and undermines the Assembly's role in approving final appropriations. The Committee recommends that the General Assembly request the Secretary-General to propose, in the next financial performance report, measures to address that situation in line with financial regulations and rules, previous Assembly resolutions and established practices and procedures. Thank you very much, Madam Chair. Hungary · Chair [44:34]: I thank Mr. Feng Qiao for his introduction. The floor is now open for any delegation who wishes to make statements. And I now give the floor to the distinguished representative of Iraq on behalf of G77 and China. Iraq · G77 + China [44:52]: Thank you, Madam Chair. I have the honor to deliver this statement. on behalf of the Group of 77 and China on the financial performance report for the budget period 2024. The Group wishes to thank Mr. Chandor Ramanathan, Assistant Secretary General and Controller, and the Vice Chair of the ACABQ for introducing their respective reports. The Group attaches great importance to the agenda item. Assessing the performance of the program budget during the previous year is not only relevant to the credit calculations. It is an important opportunity for the Committee to ensure that mandates are implemented in an effective and efficient manner, that the General Assembly's budgetary decisions are being adhered to. Madam Chair, the group regrets that once again, because of unpredictability in the pattern of collection, hiring and spending restrictions have been imposed as from July and September 2024, respectively. The group reiterates that mandate delivery must be the driver of budget implementation. We are deeply concerned that cash availability has repeatedly become a dominate factor potentially hindering mandate delivery. The group takes note of Secretary General proposal for temporary suspension of return of the credit of 2024, meaning that indicated returnable amount of $298.94 million would be placed after apportionment to member states in a reserve that would be used in the event that collections are insufficient to enable the implementation of mandates in 2026. The group stresses, however, that most fundamental and effective answer to the The current liquidity problems of the organization depends on the member states fulfilling their obligation to pay their assist contribution in full on time without condition- conditions. We welcome the effort from the member states, which have been making consistent effort to reduce their arrears and provide more predictability to the secretariat on their payments. We also emphatically recall that one single member state, which is also only beneficiary of the maximum ceiling in the scale of assessment, continues to be responsible for more than half on unpaid assist contributions to the regular budget. The proposed temporary suspension for return of the credit is not fundamental way of solving this problem. The Group of 77 and China concurs with the ACABQ that the practical of the treating the initial appropriation as the final budget under the annual budget cycle departs from established practice and risks undermining the prerogative of the General Assembly. The group emphasizes that authority to determine and approve the final level of appropriation rests exclusively with Assembly in accordance with financial regulation and rules. In this regard, the Group supports the ACABQ's recommendation that Secretary-General present corrective measures in the next performance report to ensure full compliance with established budgetary procedures. Madam Chair, the Group of 77 and China highlights the need to gain a deeper understanding of the functioning and review of the Cost Recovery Fund, a matter on which the group has consistently raised questions over the past years. The group knows that revenues of the Cost Recovery Fund amounted to nearly $320 million in 2024, which modest surplus of $3.3 million recorded. In view of continued liquidity challenges faced by organization, the group consider it's timely to focus on the account in particular and request the Secretariat to present concrete options to how surplus fund generated through cost recovery could be utilized and elevated the liquidity crisis, while ensuring transparency, accountability, and full compliance with the guidelines established by the General Assembly. We also identify a need to pressure discussion to pursue a discussion on other relevant topics raised by the Advisory Committee, including transfers between section and forward, pursuing of the In conclusion, the group is ready to engage constructively with the view to achieving a successful outcome on the important agenda item. I thank you, Madam Chair. Hungary · Chair [50:27]: I thank you, and I now give the floor to the distinguished representative of Mozambique. Mozambique [50:35]: Thank you, Madam Chair. Well, firstly, I would like to thank the presenters of the proposed program budget for 2026 and the financial performance report for 2024. Madam Chair, allow me to begin by situating these documents within the broader operational reality facing our organization. The United Nations today operates across 4,000 offices in 1,100 locations worldwide, reaching nearly 440 million people through development programs and 140 million through humanitarian intervention annually. This vast footprint is powered by a constellation of more than 140 entities, yet sustained by an increasingly fragile and shrinking core budget, a fundamental disconnect that threaten institutional effectiveness. The 2024 performance report starkly illustrates this imbalance. The organization closed the year with expenditure of 3.6 billion, 7% below the approved appropriation, and accumulated arrears of 760 million, forcing internal borrowing to meet payroll and prompting a proposal to temporarily suspend 299 million in credits owed to member states. The 2024 performance reveals that the under execution resulted not from productivity gains, but from liquidity-driven constraint. Activities were postponed, post-frozen, and programs under implemented, and critical initiatives delayed, not by strategic choice, but by financial necessity. Madam Chair, With this, the world continues looking to this organization for coherence, coordination, and credibility. But a UN that is forced to manage liquidity by withholding reimbursement cannot at the same time be effectively and leading humanity's collective response to existential challenges. A financially stable, managerially modern, and strategically predictable United Nations is not a luxury, but aspirational goal. It is an operational imperative for fulfilling the Charter's promise, advancing Africa's development and peace priorities, and delivering on our pact for the future. Mozambique Therefore, support exploring the adoption of rolling multi-year program and frameworks linking resource allocation to measurable performance indicators and defined outcomes, while providing predictability to the Secretariat for strategic planning purposes. Crucially, such framework must maintain robust annual oversight mechanism by the General Assembly. Regarding the proposal to temporarily suspend the return of credits, Mozambique recognizes its prudence, but stresses that it must be time-bound, transparent, and subject to periodic review by this committee. Liquidity reserves cannot replace structural reform, nor can they replace the charter obligation of all member states to pay their assessed contribution fully on time. I thank you, Madam Chair. Hungary · Chair [54:39]: I thank you. If there are no further comments, the committee has thus concluded its general discussion on this question. Informal consultation on this agenda item will be coordinated by Ms. Johanna Bischof of Austria. The meeting is adjourned.