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Palestinian Authority grapples with financial crisis, mulls pay cuts for employees


Mona Kandil
TV,

The Palestinian Authority is presently experiencing the worst financial difficulties since its inception more than a quarter-century ago.

PA officials say this could soon reflect on the party’s ability to pay salaries to its employees and conduct daily businesses.

The is the PA’s largest single donor, but the bloc has not announced any aid to the Fatah-led authority so far in 2021.

Palestinian Mohammed Ishtaye told his cabinet recently that the PA has also not received any financial aid from the Arab countries in two years.

Along with the longstanding fiscal leakages fueling the financial crisis, continues to deduct millions of dollars every month from clearance revenue transfers. This is in response to payments by the Palestinian Authority to the held in Israeli jails, their families and the families of those killed by forces.

Meanwhile, the has called on donors to help reduce the budget deficit of the PA, saying that the financial situation remains fragile due to high public spending and very low external financing to the authority.

Observers have expressed concern that the increasingly cash-strapped PA could eventually face financial collapse.

PA officials say the main reason behind the financial crisis is lack of international and Arab donations to .



Source link:presstv

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