The budget, adopted by the 191-nation assembly by consensus late on Tuesday, would authorise the world body to spend $3.16 billion in 2004 and 2005, or $1.58 billion annually.

The two-year budget has grown by about 15 per cent over the past 10 years and was nearly flat between 1994 and 2001, but most of the decade's increases reflect adjustments for inflation, the officials said.

The new budget compares to $2.97 billion for 2002-2003.

UN Secretary-General Kofi Annan requested $3.01 billion for 2004-2005, but the extra funding approved by the assembly was again limited to adjustments required to keep up with inflation and the cost of the falling US dollar, said Warren Sach, the UN programme planning and budget director.

"In real terms, the budget remains at the same level," Sach told reporters.

To help cope with future dollar fluctuations, the assembly authorized Annan to seek dues from some countries in currencies other than US dollars over the next three years. The assembly also approved 62 of the 117 new posts that Annan requested and gave him new powers to shift staff and funding to deal with changing priorities.

The budget provides more money mainly for development programmes and particularly for the special needs of Africa, hit hard by civil wars, poverty and soaring AIDS caseloads. It also funnels extra money to crime prevention, human rights and humanitarian aid.

The United Nations is funded primarily through dues from member nations and the assembly extended for three more years an assessment scale adopted in 2000 despite complaints from some developing nations that their dues had jumped under the new scale. Assessments were revised in 2000 at the insistence of the United States, which wanted its dues cut.

Under the new scale, Washington nonetheless pays 22 per cent of the general UN budget, while Japan pays 19.5 per cent. Among permanent security council members in addition to the United States, Britain pays 6.1 per cent, France 6.0 per cent, China 2.05 per cent and Russia 1.1 per cent.