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Why did the League of Nations have a limited budget?

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Delegates in formal attire seated closely together at an international League of Nations conference, circa 1930. — League of Nations Delegates attending a League of Nations meeting, c. 1930.

The League of Nations operated with a limited budget primarily because its member nations, particularly the wealthiest ones, consistently made dedicated efforts to reduce its expenditures to the absolute minimum.1

Throughout the League's existence, its work was hampered by this persistent poverty. Despite the organization managing a complex range of institutions—including the International Labour Organization and the permanent court—the combined average annual budget was less than $5,500,000. This funding had to cover all operational costs as well as capital expenditures, such as the construction of the Palais des Nations.1

While the League was often perceived by its opponents as an extravagant institution, this was largely a legend; in reality, the organization functioned under strict financial constraints imposed by its own members.1