Prime Minister Fayyad Submits $3.9 Billion Budget; Claims $1.4 Billion Shortfall

Prime Minister Salam Fayyad told the Palestinian Authority that at least $1.4 billion in aid from foreign nations is needed in order to cover the shortfall in the $3.9 billion budget for 2013 he submitted on Monday. Fayyad repeated what he has said before, that the primary reason for the shortfall is the failure by donor nations to make good on their aid pledges. The Palestinian treasury received a boost at the end of President Obama’s trip last Friday when it was informed that $500 million in American aid to the PA that had been frozen by Congress is being freed-up and will be sent to Ramallah. Under pressure from Washington, Israel will be forwarding the approximately $100 million tax and tariff revenues it collects for the Palestinians each month and is supposed to transfer monthly.