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Business Report International

WHO facing $2.5bn gap even after slashing budget: report

AFP|Published 1 month ago

a sign of the World Health Organisation (WHO) at their headquarters in Geneva.

Image: AFP

The World Health Organisation is facing a gaping deficit this year and through 2027 following the US decision to withdraw, even after dramatically slashing its budget, a media report indicated on Wednesday.

As the United Nations health agency has been bracing for the planned full US withdrawal next January, it has gradually shrunk its two-year budget for 2026-2027 from $5.3 billion to $4.2bn (R75.6bn).

But even after that dramatic scaling back, it remains $1.9bn short towards the budget, Health Policy Watch reported  on Wednesday.

That figure, which the publication said had been provided to staff during a town hall meeting on Tuesday, comes on top of the nearly $600 million the agency had already warned was missing towards this year's budget, it said.

WHO did not immediately respond to AFP's request for comment on the report, which comes as the organisation is grappling with the looming departure of its historically biggest donor.

Besides announcing the US pullout from the WHO after returning to the White House in January, President Donald Trump decided to freeze virtually all US foreign aid, including vast assistance to health projects worldwide.

The US gave WHO $1.3bn during its 2022-2023 budget period, mainly through voluntary contributions for specific, earmarked projects rather than fixed membership fees.

But Washington never paid its 2024 dues, and is not expected to respect its membership obligations for 2025, the agency acknowledged.

Altogether, the United States owes $260m in membership fees alone for 2024-2025, according to a WHO overview.

In an effort to bridge the funding gap, outgoing German Health Minister Karl Lauterbach announced on Wednesday his government would allocate an additional €2m (R39m) to the agency, bringing its total contribution to just over $317 million.

"The United States' withdrawal from the WHO not only threatens financial stability but also multilateral cooperation in the global health architecture," Lauterbach said in a statement, calling the agency "indispensable".

AFP

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