Palestinian Government faces severe financial crisis amid revenue shortages

The Palestinian government is facing an unprecedented financial crisis, with available resources covering less than 20% of monthly requirements. Dr. Mohammad Abu al-Rub, Director of the Government Communication Center, stated that Israel continues to withhold approximately 68% of Palestinian revenues, primarily through the retention of clearance funds (Maqasa).

To mitigate the shortage, the Ministry of Finance and Planning has implemented financial settlements totaling approximately 3.6 billion shekels. These settlements involve net lending issues, including accumulated debts from local authorities and electricity and water distribution companies. According to Magdi al-Hassan, Undersecretary of the Ministry of Finance and Planning, these measures helped secure between 1.5 and 1.6 billion shekels in resources, which assisted in funding current expenditures and providing partial salary payments for employees.

Despite these efforts, the government faces significant challenges in maintaining essential services in health, education, and social protection. Officials noted a decline in external support, highlighting that the administration has gone nearly a year without direct budget support from Arab or Islamic nations for the general treasury.