UN fails to reach deal on budget shortfall as US funding dips

United Nations, United States | AFP | United Nations member states failed to come up with a deal Friday to make up for a $220 million budget black hole left by the United States downsizing its contribution to peacekeeping operations, diplomats said.

The United States had paid around 28 percent of the UN peacekeeping budget before President Donald Trump announced in September that Washington would pay no more than 25 percent. That three percent shortfall represents around $220 million.

The UN operating budget for 2018-19 is around $5.4 billion, and the US pays around a fifth of that. The separate peacekeeping budget is in excess of $6.6 billion — cut last year by $600 million under US pressure.

Peacekeeping financing is determined by a complicated formula that takes into account a country’s wealth, its standing as a permanent Security Council member and other factors.

China’s strong economy has meant that its share of the peacekeeping budget has grown significantly to 15 percent, but other permanent council members, such as Russia, pay less than five percent.

Since Trump came to office in early 2017, the United States has refused to pay more than 25 percent of the peacekeeping budget.

The UN’s financial shortfall will continue to grow after a consensus reached overnight to maintain the status quo on key budget issues for another three years, diplomats said.

One diplomat said Washington had in recent week approached several member states and tried to enlist them to pick up some of the slack for the money the Trump administration is no longer willing to pay.

“They realized they weren’t getting anywhere and gave up,” said the diplomat, adding that the US approached Brazil, India, Turkey, Mexico, Saudi Arabia, Qatar, the United Arab Emirates, Singapore and Brunei.

The US mission to the world body did not respond to questions on the issue Friday.

Diplomats said the so-called Group of 77 plus China — in reality a group of 134 nations — tried to establish a way of making the European Union pay for its observer status at the UN.

The EU refused, citing the fact that European states already pay 32 percent of the UN operating budget and 30 percent of the peacekeeping costs, according to diplomats.