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[POLITICS] · Palestinian Territories, Israel · 9 sources

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Palestinian Finance Minister warns of fiscal crisis amid withheld funds

Palestinian Minister of Finance and Planning, Stephan Salame, has warned of an existential threat to Palestinian institutions due to a severe financial crisis. The crisis is driven by Israel's continued withholding of clearance funds (tax revenues) for 17 consecutive months.

Salame reported that the Palestinian government faces a monthly funding gap of approximately 650 to 700 million shekels. While the government's monthly requirements are estimated at 1.5 billion shekels, only 800 to 850 million shekels are currently available. This shortfall has forced the government into a monthly struggle to pay employee salaries, with a minimum payment of 50% being issued, though over 51% of employees receive 80% or more of their pay.

During a meeting of the international coordination committee (AHLC) held alongside the UN General Assembly, Salame called for exceptional international financial and political support. He emphasized that current donor aid is insufficient to address the economic pressures caused by Israeli restrictions and settler violence. He urged the international community to take practical steps to support the Palestinian budget and the reconstruction of Gaza, rather than waiting for Israeli election outcomes.

Entities

AHLC · Ad Hoc Liaison Committee (AHLC) · Israel · Palestinian Authority · Stephan Salame · Stephan Salameh · United Nations

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