Mr. Chair,

1. I have the honor to speak on behalf of the Group of 77 and China on agenda item 136: "Review of changes to the budgetary cycle".

2. The Group would like to thank Ms. Catherine Pollard, Under-Secretary-General for Management, Strategy, Policy and Compliance, for introducing the report of the Secretary-General on this agenda item. The Group takes note of the report of the Secretary General A/77/485 "Shifting the management paradigm in the United Nations: review of changes to the budgetary cycle". We also thank Mr. Abdallah Bachar Bong, Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) for presenting the Advisory Committee's related report.

3. The Group welcomes the efforts led by the Secretary General to place the United Nations at a better position to contribute to the implementation of the 2030 Agenda for Sustainable development. As part of his initiatives to enhance the UN's capacity to deliver in a more efficient way, we note that the management reform has represented a major transformation in the Organization.

4. One of the main features of this reform, the annual budget cycle, introduced on a trial basis by resolution 72/266 A, has been put forward as an attempt to obtain a faster adjustment by the Secretariat to implement new mandates and better respond to quickly evolving contexts in the world.

5. Mindful of the Secretary General's willingness to boost the functioning of the Organization through a more efficient management performance, the Group of 77 and China embarked on this reform, showing confidence and support to this vision, despite the big challenges of the Covid-19 pandemic and the liquidity challenges of the United Nations.

6. However, it must be remembered that since the initial stages of this reform, the Group has expressed, in a clear and consistent manner, its concerns on some changes, especially about the disruption of the established budgetary procedures and practices i.e. the sequential nature of the proposed programme budget. We also noted other challenges, including the increased workload and the more frequent expiration of funds as pointed out by ACABQ.

Mr. Chair,

7. The Group of 77 and China attaches paramount importance to the preservation of the intergovernmental nature of the United Nations. To ensure this, it is fundamental that Member States, through the Committee for Programme and Coordination (CPC), approve programme plans as the basis for the preparation of the programme budget. Since the implementation of the annual budget cycle on a trial basis, the proposed programme budget is presented to the ACABQ before members of the CPC can provide recommendations on the programme plans.

8. To remedy this situation, the Group has engaged in a constructive manner in previous sessions. We recall our proposal, reflected in resolution 74/251, requesting the Secretary-General to present a report with possible options to ensure the preservation of this sequence, including the possibility of the Advisory Committee to prepare its conclusions and recommendations on the basis of a programme plan approved by the General Assembly. At the time, the requested report was presented under the code A/74/852; yet, the group felt that the report did not take into account the legitimate expectations of the Group, since it clearly discouraged any adjustment to solve the issue of the sequence.

9. More recently, during the 62nd session of the CPC, the members of the Group represented in this Committee raised a new proposal to ensure the preservation of the sequential nature of the budget while respecting its annual cycle. It is regrettable that some other members of CPC showed no willingness to discuss and find a solution on what represents a core concern for the Organization.

10. Now, at the time to review the annual budget after the 3 years trial, as indicated in resolution 72/266 A the views of more than two thirds of the UN membership need to be considered. In the same way the G77 and China committed to work constructively on this initiative with Secretary-General, despite its original preoccupations, we expect the same constructiveness from every stakeholder involved in this process.

11. These discussions provide us a valuable opportunity to strengthen the role of the CPC. The interaction between the CPC and ECOSOC needs to be strengthened and empowered, the group will engage in proposals to enhance the relationship and to strengthen the governance mandate of the CPC and ECOSOC in program planning.

12. We wish to highlight that any outcome of this review must find a balance that satisfies every stakeholder in the negotiation and ensure accountability, responsiveness, and effectiveness of mandate delivery. In the absence of a constructive and balanced outcome, the vision of this reform and what it represents will be undermined, affecting as well other future discussions in this regard. What is at stake is the way in which the United Nations will operate for decades; this is something too important to go without transparent and constructive action.

Mr. Chair,

13. The Group of 77 and China remains optimistic that new ways will be considered to address the main concern that we have raised since the approval, on a trial basis, of the annual budget cycle. We are encouraged by the comments made by the Secretary-General to the Fifth Committee, on 12 October, about the need to conjugate the planning and budgeting processes and preserve their intergovernmental nature. We look forward to maintaining this spirit during our deliberations.

14. In conclusion, Mr. Chair, the Group of 77 and China would like to assure you of our continued commitment to work constructively with all delegations and to present alternatives for the fruitful conclusion of this agenda item.

I thank you.