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Wednesday, 28 November 2007

Financing

The UN is financed from assessed and voluntary contributions from member states. The regular two-year budgets of the UN and its specialized agencies are funded by assessments. 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%. The U.S. is the only member that meets the ceiling. In addition to a ceiling rate, the minimum amount assessed to any member nation (or 'floor' rate) is set at 0.001% of the UN budget. Also, for the least developed countries (LDC), a ceiling rate of 0.01% is applied.
The current operating budget is estimated at $4.19 billion (refer to table for major contributors). Some member nations are overdue on their payments, most notably the United States (see United States and the United Nations).
Special UN programmes not included in the regular budget (such as UNICEF and UNDP) are financed by voluntary contributions from member governments. Most of this is financial contributions, but some is in the form of agricultural commodities donated for afflicted populations.

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