# Palestinian economic and fiscal crisis > Live situation record from CLSTR: https://clstr.news/situations/palestinian-economic-and-fiscal-crisis > Updated: 2026-10-24T22:47:32.000Z. Sources: 12. Developments: 3. The Palestinian economy is experiencing a severe structural crisis characterized by rising public debt and the withholding of clearing funds by Israel. These funds, which represent approximately 68% of total public revenues, have faced significant disruptions. By the end of 2025, the Palestinian Authority’s public debt reached approximately $4.8 billion, including $3.3 billion owed to local banks, leaving the local banking sector with substantial exposure to sovereign risk. The Palestinian Monetary Authority has warned that restrictions on correspondent banking relationships could impede the import and export of essential goods, including food, medicine, and fuel. Recent reports indicate the crisis has reached unprecedented levels, with available resources covering less than 20% of monthly requirements. To mitigate shortages, the Ministry of Finance and Planning has implemented financial settlements totaling approximately 3.6 billion shekels, involving net lending issues and debts from local authorities and utility companies. These measures helped secure between 1.5 and 1.6 billion shekels to fund current expenditures and partial salaries. 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. Minister of Finance and Planning Dr. Stephan Salameh has continued to call for exceptional international financial and political support, emphasizing that current donor aid is insufficient to address economic pressures caused by Israeli restrictions and settler violence. ## Claims - A minimum salary payment of 50% is being issued to employees. (disputed by 5 sources) - More than 51% of employees receive 80% or more of their salaries. (disputed by 5 sources) - Israel has withheld clearance funds (tax revenues) for 17 consecutive months. (corroborated by 7 sources) - The Palestinian government is fighting a monthly battle to secure partial salaries for employees. (corroborated by 5 sources) - The Palestinian government's monthly financial needs are approximately 1.5 billion shekels. (corroborated by 5 sources) - The government currently has between 800 and 850 million shekels available monthly. (corroborated by 5 sources) - The Palestinian government is requesting exceptional international financial and political support. (corroborated by 5 sources) - The Palestinian Authority is operating with approximately 10% of its revenues over the last 17 months. (corroborated by 2 sources) ## Timeline ### 2026-10-24: Palestinian Government faces severe financial crisis amid revenue shortages The Palestinian government reports that available resources cover less than 20% of monthly needs due to Israel withholding 68% of revenues, prompting 3.6 billion shekel in financial settlements to fund salaries 3 sources. https://clstr.news/cluster/palestinian-government-faces-severe-financial-crisis-amid-revenue-shortages ### 2026-09-27: Palestinian Finance Minister warns of fiscal crisis amid withheld funds Palestinian Finance Minister Stephan Salame warns of an existential crisis as Israel withholds clearance funds for 17 months, leaving the government unable to meet 1.5 billion shekels in monthly needs. 9 sources. https://clstr.news/cluster/palestinian-finance-minister-calls-for-increased-international-aid ### 2026-09-01: Palestinian economy faces crisis amid clearing fund shortages and rising debt The Palestinian economy faces a severe crisis as Israel withholds clearing funds, driving public debt to $4.8 billion and threatening the banking sector and the availability of essential goods and services. 2 sources. https://clstr.news/cluster/palestinian-economy-faces-crisis-amid-clearing-fund-shortages-and-rising-debt --- Cite as: Palestinian economic and fiscal crisis. CLSTR, https://clstr.news/situations/palestinian-economic-and-fiscal-crisis