Palestinian Authority’s Financial Crisis Deepens, Public Sector Suffers
The Palestinian Authority (PA) is grappling with an acute financial crisis that has left public servants without full salaries since August 2022. Veteran Palestinian journalist Elias Zananiri sheds light on the escalating hardships faced by PA employees and the broader community.
In Ramallah, a tense scene unfolded at a supermarket as a customer, unable to afford his groceries, had to return items. This incident reflects the severe financial strain on PA public sector workers, whose salaries have been slashed progressively from 80% to 50%.
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The PA’s financial woes are attributed to the erosion of its budget pillars, including reduced tax transfers from Israel, declining European Union support, dwindling loans and grants from the World Bank, and cuts in US and Arab country aid.
Economic expert Moayad Afaneh argues that the Israeli occupation is a primary cause of the crisis, restricting Palestinian access to vital resources and revenue. The crisis impacts essential services like healthcare, with strict rules now governing medical transfers to neighboring countries.
Further complicating matters, the PA’s stipends to families of Palestinians killed or imprisoned by Israel have sparked controversy and financial repercussions. Israel deducts equivalent amounts from tax revenues it collects for the PA, intensifying the economic strain.
To explore the full extent of the PA’s fiscal challenges and their impact on daily life, read the complete article by Elias Zananiri.
