Mr. Chair,

1. I have the honour to deliver this statement on behalf of the Group of 77 and China on the financial performance report on the programme budget for 2025.

2. The Group thanks Mr. Chandru Ramanathan, Assistant Secretary-General and Controller, and Ms. Juliana Gaspar Ruas, Chair of the Advisory Committee on Administrative and Budgetary Questions for introducing their respective reports.

3. The Group attaches great importance to this agenda item. Reviewing financial performance goes beyond calculating credits: it enables Member States to assess compliance with the General Assembly's budgetary decisions and whether approved resources supported mandate delivery in an effective and efficient manner. The lessons drawn must inform future planning and implementation, with clear links between financial and programmatic performance.

Mr. Chair,

4. The Group notes expenditure of $3.485 billion in 2025, leaving an unencumbered balance of $330.1 million against appropriations. We remain deeply concerned that spending restrictions, which reached $600 million, curtailed activities and constrained recruitment. Underspending arising from liquidity restrictions must not be presented as efficiency gains or used to justify reductions in future resource requirements. Mandate delivery must remain the driver of budget implementation.

5. We note the Advisory Committee's observations regarding the information provided on resource allocation and the prioritization of activities. We encourage the Secretariat to provide further clarification on the criteria guiding allotments and hiring exceptions across budget sections, as well as their implications for programme delivery. Additional information on activities affected by liquidity constraints and the measures envisaged to address those effects would assist Member States in their consideration of the report.

6. The Group stresses that the development pillar and the priorities of developing countries must receive due attention and resources. We are particularly concerned about the effects of restrictions on activities supporting development priorities. We also share the Advisory Committee's concern that reduced funding for travel of representatives and experts may undermine inclusive participation, particularly for Member States requiring financial assistance.

7. The Group remains deeply concerned that 2025 closed with record arrears of approximately $1.6 billion. The unilateral and persistent withholding of contributions, late payments and accumulated arrears undermine mandate implementation and place an unfair burden on Member States that fulfil their obligations.

Mr. Chair,

8. We recall the historic decision taken collectively during the second part of the resumed 80th session to revise the credit-return methodology through resolution 80/270. This decision supersedes the proposals in the Secretary-General's report. We note that $383.1 million in unspent funds attributable to collection shortages will be recorded as payables to Member States, while credits from higher-than-budgeted income and cancelled prior-period commitments will be returned with the 2027 assessments. However, the most fundamental and effective response to the Organization's recurrent liquidity problems remains the fulfilment by Member States of their obligations to pay their assessed contributions in full, on time and without conditions, while recognizing the genuine difficulties faced by those affected by circumstances beyond their control.

9. The Group emphasizes transparent and accountable implementation of the revised methodology. We support dedicated reporting on its annual application, including clear information on credits returned and outstanding balances, and timely implementation of the mandated memorandum accounts and disclosure arrangements. These safeguards are essential to enable Member States to assess implementation and inform the Assembly's review. Therefore, we urge the Secretariat to expedite the necessary adjustments to Umoja and provide a clear timeline for making information on the memorandum accounts publicly available and accessible.

10. The Group reiterates its longstanding interest in the management of cost-recovery funding. We request an update on proposals to improve cost tracing, align service charges with actual costs and clarify the treatment of accumulated balances and reserves. Reported surpluses must be explained, including timing differences between revenues and expenses, so that Member States can assess their nature and any scope for their use in full compliance with the Assembly's guidance.

11. The Group reaffirms the General Assembly's authority to approve final appropriations. We share the Advisory Committee's continued concern regarding the treatment of initial appropriations as the final budget without reflecting actual performance. Clear arrangements are needed to ensure full compliance with established budgetary procedures, including the Financial Regulations and Rules, and the timely submission, where appropriate, of proposals for transfers between budget sections. The comprehensive review of the annual budget cycle must address these outstanding issues.

12. The Group remains committed to engaging constructively to ensure that budget implementation respects the Assembly's decisions and enables the Organization to deliver fully on its mandates.

Thank you.