Madam Chair,

1. I have the honor to deliver this statement on behalf of the Group of 77 and China on agenda item 148, following the introduction of the related reports before the Committee.

2. The Group would like to thank Ms. Maria Costa, Deputy Controller and Director of the Finance Division of OPPFB, Ms. AnneMarie van den Berg, Assistant Secretary-General of the Department of Operational Support, Ms. Fatoumata Ndiaye, Under-Secretary-General of the Office of Internal Oversight Services, Mr. Christian Saunders, Under-Secretary-General and Special Coordinator on Improving the United Nations Response to Sexual Exploitation and Abuse, Ms. Eileen Cronin, Inspector of the Joint Inspection Unit, Ms. Federica Pietracci, Senior Programme Management Officer of the CEB Secretariat, and Ms. Juliana Gaspar Ruas, Chair of the Advisory Committee on Administrative and Budgetary Questions, for the presentation of their respective reports.

Madam Chair,

3. The Group takes note of the proposed reduction of 12.4 per cent in the overall peacekeeping budget for the 2026/27 period, excluding new mandates, reflecting continued adjustments in the size and configuration of missions, including transitions, drawdowns, and the implementation of efficiency measures. The Group stresses that any reductions must be data-driven, evidence-based, and subject to thorough assessment, so as not to undermine safe and effective mandate delivery, particularly in complex and high-risk environments.

4. The Group expresses serious concern regarding the persistent and worsening liquidity challenges affecting peacekeeping operations. We note that unpaid assessed contributions have reached significant levels, resulting in reduced cash balances, increased reliance on cross-borrowing and delayed reimbursements to troop- and police-contributing countries, including important deferrals for contingent-owned equipment. These developments are not sustainable and risk undermining both mandate delivery and the credibility of the Organization.

5. In this regard, the Group reiterates that the timely and full payment of assessed contributions by all Member States remains the only sustainable solution to the Organization's liquidity challenges. We emphasize that financial constraints should not be addressed through measures that compromise the effective functioning of missions or shift the burden onto those Member States that contribute personnel and capabilities to peacekeeping operations, as it is now the case.

6. The Group acknowledges the Secretariat's efforts to promote a culture of efficiency and cost-effectiveness. While we support genuine efficiency gains, we stress the importance of clearly distinguishing between structural efficiencies and short-term expenditure compression measures, such as hiring freezes and delayed deployments, which may have adverse implications for mandate implementation, safety and security of personnel, and timely reimbursement to T/PCCs.

7. The Group further notes that the current financial environment has led to the prioritization and scaling down of activities in several missions, with potential implications for the full implementation of mandates. In this regard, we stress the importance of comprehensive and transparent reporting on the impact of such contingency measures, including on mandate delivery, operational effectiveness and the safety and security of personnel.

8. The Group reiterates its long-standing concern regarding the lack of equitable geographical representation within the United Nations, particularly at senior levels and in entities supporting peacekeeping operations. In this regard, the Group underscores the importance of ensuring the fair and balanced representation of developing countries, including troop- and police-contributing countries, across all levels of staffing, both in the field and at Headquarters, including in departments funded through the support account.

9. With respect to the report of the Office of Internal Oversight Services, the Group notes the significant volume of oversight activities and recommendations issued in relation to peace operations. We underscore the importance of effective follow-up to these recommendations, particularly in areas such as procurement, supply chain management, mission transitions and internal controls, to strengthen accountability and improve operational performance.

10. Turning to the reports on protection from sexual exploitation and abuse, the Group acknowledges the progress made in strengthening policy frameworks and coordination mechanisms across the system. At the same time, we note with concern that efforts remain uneven, with persistent gaps in prevention, accountability and victim support. We stress that a system-wide, properly resourced and fully institutionalized approach is essential to effectively address this issue.

11. In this regard, the Group emphasizes the importance of the development of a renewed system-wide strategy, including a costed implementation framework, clear indicators and strengthened accountability mechanisms. We look forward to further information on how these elements will be integrated into existing structures and supported through predictable and sustainable financing.

12. The Group also acknowledges the report of the Joint Inspection Unit and the emphasis placed on enhancing system-wide coherence, strengthening coordination mechanisms, and ensuring a victim-centred approach that upholds the principles of presumption of innocence, impartiality, and fairness. We underline that the effective implementation of these recommendations will depend on sustained resourcing, a clear delineation of responsibilities, and strong commitment across all entities.

13. With respect to the report on the triennial review of contingent-owned equipment, the Group expresses its appreciation for the work of the 2026 Working Group, which brought together a broad range of technical expertise and achieved a significant number of consensus-based outcomes. We note the progress made in advancing reforms aimed at enhancing accountability, operational readiness and transparency. The Group will examine carefully the proposed changes, including the introduction of usage-based reimbursement models, to ensure that they are implemented in a fair, transparent and practical manner, taking into account the perspectives of T/PCCs.

Madame Chair,

14. In conclusion, the Group of 77 and China reiterates its commitment to engaging constructively on this agenda item, with a view to ensuring that peacekeeping operations are adequately resourced, effectively supported and able to deliver on their mandates, while upholding the principles of accountability, transparency and sound financial management.

I thank you.