United Nations - Funding

Funding

The UN is financed from assessed and voluntary contributions from member states. The General Assembly approves the regular budget and determines the assessment for each member. This is broadly based on the relative capacity of each country to pay, as measured by their gross national income (GNI), with adjustments for external debt and low per capita income.

The Assembly has established the principle that the UN should not be overly dependent on any one member to finance its operations. Thus, there is a 'ceiling' rate, setting the maximum amount any member is assessed for the regular budget. In December 2000, the Assembly revised the scale of assessments to reflect current global circumstances. As part of that revision, the regular budget ceiling was reduced from 25% to 22%. For the least developed countries (LDCs), a ceiling rate of 0.01% is applied. In addition to the ceiling rates, the minimum amount assessed to any member nation (or 'floor' rate) is set at 0.001% of the UN budget. Refer to the table for major contributors.

A large share of UN expenditures addresses the core UN mission of peace and security. The peacekeeping budget for the 2005–2006 fiscal year was approximately US$5 billion, €2.5 billion (compared to approximately US$1.5 billion, €995 million for the UN core budget over the same period), with some 70,000 troops deployed in 17 missions around the world. UN peace operations are funded by assessments, using a formula derived from the regular funding scale, but including a weighted surcharge for the five permanent Security Council members, who must approve all peacekeeping operations. This surcharge serves to offset discounted peacekeeping assessment rates for less developed countries. As of 1 January 2011, the top 10 providers of assessed financial contributions to United Nations peacekeeping operations were: the United States, Japan, the United Kingdom, Germany, France, Italy, China, Canada, Spain and the Republic of Korea.

Special UN programmes not included in the regular budget (such as UNICEF, the WFP and UNDP) are financed by voluntary contributions from other member governments. Most of this is financial contributions, but some is in the form of agricultural commodities donated for afflicted populations. Since their funding is voluntary, many of these agencies suffer severe shortages during economic recessions. In July 2009, the World Food Programme reported that it has been forced to cut services because of insufficient funding. It has received barely a quarter of the total it needed for the 09/10 financial year.