With 37 Member States having paid all their assessments so far this year, speakers in the Fifth Committee (Administrative and Budgetary) today emphasized the need for all countries to fulfil their financial obligations to the United Nations — and warned of the impact on peacekeeping if they failed to do so.

The representative of Australia, also speaking on behalf of Canada and New Zealand, said that unpaid assessed contributions not only had a negative impact on cash flow, but also discouraged Member States from contributing to future peacekeeping operations.  Without money coming in, he said, troop- and police-contributing countries would be left waiting to be reimbursed for costs incurred.

His counterpart from Thailand, on behalf of the “Group of 77” developing countries and China, noted how many troop-contributing countries were also developing countries.  As such, she said, they could not single-handedly sustain their troop commitments for long periods of time.  She also expressed concern about the withholding of assessments as a means to push for reform, and called for assurances that programmes and activities would not be delayed or scaled down.

Japan’s representative said his country had discharged its payments despite its long-standing domestic financial difficulties and recent exchange rates trends.  While welcoming the Secretariat’s efforts to utilize resources in the best way possible, he asked that it share all relevant information about the implementation of the Umoja enterprise resource planning system, saying it was important for Member States to ensure accountability to their taxpayers.

Representatives of Iran and Cuba described how their countries’ ability to pay their assessments was complicated by unilateral sanctions.

Yukio Takasu, Under-Secretary-General for Management, updating the Committee on developments since his presentation last week on the United Nations financial situation, said the Organization was “very, very grateful” that 37 Member States had so far paid all their regular budget, peacekeeping and tribunal assessments.

In other business, the Committee heard the introduction of reports from the Secretary-General on proposed 2016/17 budgets for the United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) and the United Nations Mission in South Sudan (UNMISS), set at $945.5 million and $1.1 billion respectively.

It also heard the introduction of a report on revised estimates relating to the Secretary-General’s report on implementation of the recommendations of the High-Level Independent Panel on Peace Operations.  Representatives of the United Republic of Tanzania, for the African Group, and Ethiopia emphasized the importance of the United Nations working with regional and subregional groups, such as the African Union.  Others, however, criticized the way in which the Secretariat had presented the revised estimates and called for it to respect budgetary discipline.

Representatives of China, Brazil, Kuwait and Switzerland also spoke today, as did a representative of the European Union.

The Committee will meet again at 3 p.m. on Friday, 27 May, to conclude the second resumed part of the seventieth session.

Financial Situation of United Nations

YUKIO TAKASU, Under-Secretary-General for Management, updated the Committee on developments since his presentation last week on the Organization’s financial situation.  Since the cut-off date of 30 April, he said, $20.2 million for the regular budget had been received from six Member States, including $9.3 million from Mexico.  The Organization also received $133.4 million for peacekeeping operations from 17 Member States, including $103 million from the United Kingdom.  For tribunals, $1.55 million had been received from 10 Member States.  The total number of Member States that had paid in full currently stood at 84 for the regular budget, 45 for peacekeeping and 57 for tribunals.  Following payments received from Denmark and the Federated States of Micronesia, the number of Member States that had paid their assessments in full across all categories stood at 37, he said.

CHULAMANEE CHARTSUWAN (Thailand), speaking on behalf of the “Group of 77” developing countries and China, expressed concern over the increase of unpaid assessments for peacekeeping operations.  Despite some improvement, significant amounts were still owed to the Organization, she added, noting the level of outstanding payments to Member States as it related to troop costs and contingent-owned equipment was slightly lower at the end of 2015.  Since many troop-contributing countries were also developing countries, they were not in a position to sustain their troop commitment and maintain their equipment on their own for extended periods of time.  This represented a major concern and priority for the Group, she said, stressing the need to improve timelines for this process.

She reiterated the legal obligations of Member States in accordance with the United Nations Charter.  Financial stability was critical for the Organization to function effectively and implement its mandate.  While recognizing that some may be experiencing genuine economic difficulties, the Group would urge all Member States to pay their assessed contributions in full, on time and without conditions.  The Group also remained concerned about policies of withholding financial obligations due to the United Nations to push reform.  Withholding funds created “artificial political leverage” that undermined the principles of the United Nations, she stressed, calling on the Organization to reassure Member States that programmes and activities would not be delayed or scaled down due to non-payment of contributions.

SIMONA PILLERI of the European Union Delegation said that ensuring the sound management of United Nations financial resources was a priority for European Union members.  Both Member States and the Secretariat had to take their responsibilities seriously, providing and utilizing funding in a responsible manner.  As previously stated by Mr. Takasu, she said, as of 30 April, the number of Member States that had paid their regular budget and peacekeeping assessments in full had decreased slightly from a year earlier.  That was a concern, she said.

Although financial indicators were generally positive, the level of cash available for the regular budget was expected to again tighten towards the end of year, she said.  The final outcome would largely depend on contributions over the remainder of the year.  She encouraged Member States to pay their assessed contributions in full and as soon as possible, but reiterated the need for the Organization to live within agreed budget levels.  New and creative ways of working needed to be found to achieve more effective delivery of mandates and sustainable use of resources.

SCOTT MARSHALL HARPER (Australia), also speaking on behalf of Canada and New Zealand, said the consequences of unpaid assessed contributions were clear.  Troop- and police-contributing countries were left waiting to be reimbursed for the costs they had incurred.  That hindered Member States’ motivation to contribute personnel and material assets to future peacekeeping operations.  It also created inequity between Member States which had paid their assessed contributions in full and on time and those which had not.  Unpaid assessed contributions also had a significant impact on the Organization’s cash flow.  As of 30 April 2016, more than $1.4 billion of regular budget contributions remained outstanding.

While the Working Capital Fund was established to provide advances to bridge the period before contributions were received, it could only function properly if those contributions were paid on time and in full, he said.  It was also important to be judicious in the use of that Fund and the Special Account, and avoid drawing heavily from them as Member States were required at the end of last year to cover the $217 million cash shortfall.  The United Nations had a mechanism in place to assist Member States in addressing their fiscal issues, he said, encouraging countries to make use of that by submitting multi-year payment plans in advance.

ABBAS YAZDANI (Iran) said his country had always had the intention to pay its assessed contribution to the United Nations in full and on time.  Its current failure to make necessary payments was due to illegal unilateral sanctions and restrictions imposed against Iran to access international banking systems.  Those constraints caused “too much difficulty” for Iran.  Still, his country had made its utmost efforts to reduce its outstanding contribution and had transferred $17 million to the United Nations account in December and January.  “These channels have their own limitations in terms of capacity to absorb more funds,” he said, reiterating Iran’s commitment to its financial obligations.  Its current failure was due to conditions beyond its control.

GUO XUEJUN (China) associated himself with the Group of 77, welcoming the fact that the United Nations current financial situation was generally sound and positive.  However, it was a matter of concern that the total arrears to both the regular and peacekeeping budgets stood at $3.8 billion as of 30 April.  He called on all Member States to fulfil their financial obligations, including developed countries with comparatively high assessments for the regular and peacekeeping budgets.  China understood the difficulties faced by some developing countries facing economic and financial hardship and supported the General Assembly in accommodating their situation in accordance with Article 19 of the Charter when necessary.  Firm support for the United Nations had been demonstrated by the fact that 35 Member States, including China, had paid their assessments in full, he said, hoping that the Secretariat would put to good use every penny of their taxpayers’ money.

ENRIQUE SANCHEZ AZCUY (Cuba) associated himself with the Group of 77, saying Member States were committed to ending poverty, controlling climate change and implementing the 2030 Agenda for Sustainable Development.  So it was logical to expect a similar level of commitment for financing.  It was worrying that one Member State owed the greatest amount of arrears, and it was the same one that benefitted from a distortion in the methodology for calculating assessments, he said, urging the Secretariat to minimize the impact of the economic crunch and to ensure effective use of financial resources.  Cuba was late in making its payments because of unilateral coercive measures imposed in violation of international law, he said, adding that financial relations with the United States had yet to be normalized and that an embargo remained in place.

PATRÍCIA BARBOSA LIMA CÔRTES (Brazil) said her country was a strong supporter of multilateralism and the United Nations.  Brazil was actively taking efforts to evaluate unpaid assessments to the Organization to make its contribution as soon as possible.

KATSUHIKO IMADA (Japan) said his country had paid all assessments in full for the regular and peacekeeping budgets, as well as the budgets for the International Tribunals and the Capital Master Plan.  Japan had discharged its payments despite long-standing domestic financial difficulties and the recent exchange rates trends.  He noted and welcomed the Secretariat’s efforts to utilize resources efficiently and effectively.  Regarding Umoja implementation, Japan expected the Secretariat to share all relevant information with Member States.  He pointed to several difficulties in receiving timely information on the status of contributions, which was maintained by the Contribution Division.  That information was important to Member States to ensure accountability to their respective taxpayers and pay assessments on time.

LOLWA SAOUD A. ALRASHEED (Kuwait), associated herself with the Group of 77, expressing satisfaction with the financial situation of the Organization in general, but stressed the need for Member States to fulfil their financial obligations so that it could fully perform its tasks.  She said her country had the privilege of being added to the honour list of those Member States which had always paid their assessments in full, on time and without preconditions, and it would make every effort to continue to do so.

JUSTIN KISOKA (United Republic of Tanzania) said his country was proud to be on the list of those Member States on track to pay their contributions.  He encouraged the Secretary-General, among others, to address issues with the online contributions portal.

Mr. TAKASU said that there had been a marked improvement in the number of countries paying their contributions in full, which showed that Governments were serious and for that “we are very, very grateful”.  As a result, the financial situation of the United Nations was positive and sound, he said, adding, however, that the regular budget and reimbursements owed by the Organization to troop-contributing countries remained areas of concern.

Financing of Peacekeeping Operations

PEDRO GUAZO, Officer in Charge, Office of Programme Planning, Budget and Accounts, introduced the reports of the Secretary-General on the budget for 2014/15, and the budget for 2016/17 for peacekeeping missions in Mali (documents A/70/592 and A/70/735/Rev.1) and South Sudan (documents A/70/599 and A/70/791).   Regarding the United Nations Mission in Mali (MINUSMA), the proposed budget for 2016/17 amounted to $945.5 million, an increase of 2.4 per cent over the approved budget for 2015/16.  That reflected an increase in resource requirements for military, police and civilian personnel, as well as an increase in resources for air transportation and communications support.  The revised concept outlined three core objectives for the 2015-2017 period, namely promoting a sustainable and credible peace process, security and stabilization, and reaching full operational capacity, including the capacity to protect and sustain the Mission.

Concerning the United Nations Mission in South Sudan (UNMISS), a budget of $1,120.2 million was proposed for 2016/17, reflecting an increase of 3.2 per cent compared to 2015/16.  The Security Council revised the Mission’s mandate to include additional tasks to support parties in implementing the Peace Agreement.  That increase reflected the higher level of planned deployment of uniformed personnel and the proposed establishment of 33 posts and positions. In addition to supporting the Peace Agreement, the Mission would continue to protect civilians, monitor human rights, and deliver humanitarian aid.

DURGA PRASAD BHATTARAI (Nepal), Chair of the Fifth Committee, drew the Committee’s attention to the related reports of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on MINUSMA (document A/70/742/Add.2) and UNMISS (document A/70/742/Add.15).

Revised Estimates:  High-Level Independent Panel on Peace Operations

Mr. GUAZO introduced the report of the Secretary-General on revised estimates relating to his report on implementation of the recommendations of the High-Level Independent Panel on Peace Operations (document A/70/745).  In it, he said, the Secretary-General requested total additional resources of $11.6 million (net of staff assessment), including $8.9 million for the Department of Political Affairs and $2.7 million for the Office of Central Support Services.  Those funds would provide for 41 posts for the Department of Political Affairs, including 32 new posts and the conversion of 9 posts previously funded from extrabudgetary resources.  He added that the proposal was aimed at enabling the Department of Political Affairs to respond quickly in instances of conflict prevention and mediation, thus supporting Member States and regional and subregional organizations more effectively.

The Chair drew attention to the related report of the Advisory Committee (document A/70/7/Add.49).

DHISADEE CHAMLONGRASDR (Thailand), speaking on behalf of the Group of 77, said that the Group was concerned about the timing of the presentation of the proposals, in the middle of discussions about peacekeeping operations and a few months after the adoption of budget proposals.  It was equally concerned that the Secretary-General had been presenting budgetary proposals in a piecemeal manner, and stressed the need for budgetary discipline.  The Group would scrutinize the proposal, including staffing requests, based on the impact on performance targets and outputs to be delivered.

Mr. KISOKA (United Republic of Tanzania), speaking for the African Group, and associating himself with the statement of the Group of 77, welcomed the Secretary-General’s proposal to strengthen the Organization’s mediation capacity, but emphasized that such efforts should be complementary to those undertaken by regional and subregional actors, including the African Union.  He also stressed the need to avoid duplication and overlapping of functions, and to allocate resources in the most efficient, effective way.  In addition, budgetary discipline needed to be observed at all times.

OLIVIER MARC ZEHNDER (Switzerland), speaking also on behalf of Liechtenstein, Norway and Turkey, said the regular budget, up to now, had provided only very limited funding for conflict prevention.  With the growing number and intensity of armed conflicts challenging both existing multilateral mechanisms and tools for ensuring peace and security, it was high time to invest more in conflict prevention and mediation.  Prevention was not only better than cure, but also more cost-effective.

DAWIT YIRGA (Ethiopia) associated himself with the statements of the Group of 77 and the African Group, saying that investment in conflict prevention was a “no-brainer”.  Strengthening the Department of Political Affairs in terms of human and financial resources was unavoidable if the United Nations was to build its capacity to anticipate conflicts and take early preventative action.  Noting the importance of the Department to enhance its strategic dialogue with the African Union, he hoped that the Committee would provide it with adequate resources to enable it to carry out its responsibilities.

Mr. SANCHEZ AZCUY (Cuba) pointed out that the level of approved resources for 2016/17 was around $5.4 billion compared to $5.5 billion in 2014/15.  “We don’t need $242 million,” he said, emphasizing that an increase in budget was simply not necessary.  The level of approved resources was not ideal but it was in line with the needs outlined by the Secretariat.  He would have liked to see from the Secretariat a more dynamic approach for an effective and timely budget proposal.  There were fewer resources but due to the re-costing exercises it was clear that those extra funds were not needed.

Mr. BHATTARAI, in his concluding remarks, said he was very pleased that the Committee during informal consultations yesterday was able to adopt the draft resolutions on three closing peacekeeping missions.  He encouraged everyone to continue to engage with a “spirit of flexibility”.  The Secretariat must do its utmost to promptly respond to requests for supplementary information, without which the Committee would not be able to proceed.