UN budget cut by 5 per cent for 2012-13

United Nations: Adjusting to tough economic times, the United Nations has taken a five per cent cut in its budget for 2012-2013 at $ 5.15 billion, making it only the second time in 50 years that the world body's budget has declined over the previous year.

The budget was approved by the 193-member UN General Assembly after night-long negotiations over the weekend.

UN Secretary-General Ban Ki-moon said the new budget reflects the commitment of the world body to "do more and better with less" at a time when governments and people everywhere are struggling.

"All budget years are tough. But this year was especially difficult," Ban said, adding that "It is a time of global financial austerity."

The UN's budget in 2010-2011 stood at $ 5.41 billion. In October, Ban had proposed a budget of $ 5.197 billion, which represented a 3.2 per cent cut, as part of adjusting to the current sluggish global economy.

Ban said while the approved budget is lower than the one from the previous biennium, it was imperative to "make the most of our resources" to be able to "continue fulfilling every one of the critical global mandates entrusted to the United Nations."

Ban has proposed a series of modifications to improve UN's efficiencies and "cut fat", including a decrease of 44 posts as well as cost-cutting for travel, consultants, general operating expenses, supplies, materials and equipment.

Assembly President Nassir Abdulaziz al-Nasser praised the "robust and constructive engagement" of all delegations in reaching consensus on a financial plan, and said that the negotiation process had been "particularly challenging this year in the wake of global financial challenges."

US deputy ambassador Joseph Torsella said in a statement the budget agreement was "historic," given that it was the first time since 1998 and only the second time in the last 50 years that the UN regular budget declined from the previous budget's actual expenses.

The US pays 22 per cent of the UN's administrative budget.

Torsella said the new budget "saves the American taxpayers millions of dollars and sets the United Nations on the path of real fiscal discipline and continued reform."

He said the average increase in UN biennial budgets over the last two decades has been 5 per cent.

The approved budget does not include peacekeeping, spending for which is approved separately.