WHO (World Health Organization) had to recommend a major budget cut following the United States’ decision to quit the agency.
The WHO would have to cut a fifth of its budget and scale back both its reach and staff in response to a nearly $600 million revenue shortfall forecast for 2025, according to the proposal.
Before the US declaration to pull from the WHO, the financial pressure had already been growing.
Growing financial limitations had compelled the organization to begin efficiency initiatives more than nine months before, Tedros said.
The state had though deteriorated markedly once other nations cut official development assistance and the US cut off foreign aid.
Tedros said, “Even before the US decision to withdraw we were facing great financial problems and had already started on efficiency measures.”
Given the increased defense budget, the US decision and lower funding from other nations have exacerbated the situation very.
Already in reaction to the funding deficit, the executive committee of the WHO slashed its planned budget for the years 20262027 from $5.3 billion to $4.9 billion.
Tedros cautioned nevertheless that the outlook for development aid was still worsening, so the agency suggested a further reduced budget of $4.2 billion, a 21 percent decrease from the initial offer.
Representing 16.3 percent of the overall budget, the United States had donated 1.3 billion dollars for the present two-year budget cycle of the WHO (2022-2023).
Most of the American financing had arrived in the form of voluntary donations for particular initiatives in place of set membership charges.
Tedros said the WHO was now at a point where it had no alternative but to reduce activities, although they tried their utmost to lower expenses.
He said, starting with senior management but descending to all levels and areas, the cutback will begin at the headquarters.
