Mr. Chair,

1. I have the honor to deliver this statement on behalf of the Group of 77 and China on Agenda Item 136: Improving the financial situation of the United Nations.

2. The Group of 77 and China would like to thank the Under-Secretary-General for Management Strategy, Policy and Compliance, Catherine Pollard for her presentation on the financial situation of the United Nation on 10 May 2024, and Mr. Chandru Ramanathan, Assistant Secretary-General for his briefing on the management of the liquidity situation on 17 May 2024.

3. The Group in addition notes the Secretary-General's report contained in document A/78/524/Add.1 on the financial situation of the organization.

Mr. Chair,

4. The Group wishes to emphasize that for the United Nations to fulfil its mandates, the organization must be funded adequately and in a predictable manner. The Group is concerned that cash situation with regard to the regular budget continues to fluctuate hence bringing unpredictability and uncertainty in the budget implementation.

5. The Group notes that the unpaid assessed contributions as at 30 April 2024 stood at $1.7 billion. While this is relatively better than the same period last year at $1.8 billion. It nonetheless represents a concerning situation for the organization that has necessitated the continuation of cash conservation measures and restrictions. As highlighted by Secretariat executing 100% of the budget would most likely result in payment default by August.

5. Similarly, for peacekeeping operations, the level of unpaid assessments as at 30 April 2024 was $2.6 billion.

Mr. Chair,

6. The ability for the Organization to settle its liabilities is fully contingent on payments being made to the United Nations. Of particular emphasis are those member states with the highest arrears that have aggravated the financial situation of the organization. It is extremely concerning that one Member State currently owes more than a half of all outstanding assessments to the UN regular budget and Peacekeeping operations budget respectively, despite having the capacity to pay. This is especially concerning in the current circumstances. Despite already benefiting from a fundamental distortion in the determination of how the Organization is financed, this member state continues to unilaterally withhold its contributions for political reasons, while still clinging on to its special privileges in the Security Council.

7. We call on member states who are in a position to do so to put their words and commitments into action, and to settle their arrears and pay their assessments in full, on time and without conditions.

8. The Group reiterates that ensuring financial stability is critical for the Organization to function effectively and fully implement its mandates. The Group wishes to express its appreciation to Member States who have made real efforts to reduce their outstanding contributions despite the financial challenges affecting their economies. We continue to empathize with Member States who are genuinely unable to meet their financial obligations for reasons beyond their control.

9. The Group also wishes to reaffirm that all actions should be taken in order to facilitate the payments of assessed contributions of Member States, and that Member States should not be prevented or hindered from honoring their legal and financial obligations to the Organization. This is especially pertinent when the Organization is experiencing persistent liquidity challenges.

Mr. Chair,

10. Despite bearing an ever-increasing share of the financial burden of the Organization, the Group remains committed to participate constructively in any efforts towards resolving the financial difficulties of the Organization. Likewise, we call on our partners to do the same. Otherwise, we are setting up the Organization for failure at a time when it is most needed.

I thank you.