UNITED NATIONS, Nov 30: The United Nations could face a debilitating financial crisis if United States manage to block the world body’s two-year budget until management reforms are agreed, according to a senior UN official.

“This place does not run on air — it runs on money,” United Nations Controller Warren Sach said at a press conference in New York, as he addressed concerns over the possibility that funding would be provided for the organization for three months out of the next biennium.

But Mr Sach rejected the notion of a complete UN shutdown, saying it was possible that salaries might not be paid in full or on time and the UN might have to borrow from peacekeeping missions or freeze purchases to close a potential shortfall.

The United States proposed a week ago that the body set an interim budget only for three or four months pending a resolution of a stalemate over management reforms Washington strongly supports.

The longer term budget would be stalled until the reforms are agreed, according to the proposal made by John Bolton, the US ambassador to the United Nations.

“Reform should drive the budget process, not the other way around,” Mr Bolton said.

Mr Sach told reporters that the $3.89 billion regular budget proposal before the fifth committee included some $73.4 million for reform activities resulting from the outcome of the September summit, he continued. The proposal did not include the funds needed for peacekeeping, the Capital Master Plan and international tribunals.