Palestine faces a deepening treasury crisis as Israel withholds a record USD 4.4 billion in tax revenues, threatening salaries and essential services.
RAMALLAH: The Palestinian government has warned of a deepening crisis facing its public treasury as Israel continues to withhold Palestinian tax revenues.
Mohammed Abu al-Rub, director of the Palestinian Government Communication Centre, said the total amount withheld has reached a record high of some 14 billion shekels (USD 4.4 billion).
He stated this casts “a heavy shadow on the government’s ability to meet its financial obligations to employees and vital sectors.”
The government needs at least 1.3 billion shekels (USD 407 million) each month to cover salaries and essential operating expenses.
Abu al-Rub said this amount exceeds available resources under the current financial constraints.
He added that the Palestinian side remains in contact with international parties to secure a financial safety net.
However, the support received so far “remains partial and does not meet the minimum actual needs.”
Under existing arrangements, Israel collects customs duties and value-added taxes on goods imported into Palestinian territories.
It is supposed to transfer these funds to the Palestinian Authority monthly.
Since November 2021, the PA has been paying only partial salaries, ranging from 50% to 90%, to public sector employees due to severe financial crises.
Security tensions in the West Bank have intensified since the start of the Israel-Hamas conflict in October 2023.
This has further deepened the PA’s financial crisis and limited its ability to pay salaries and deliver essential public services.
