A Palestinian holding banknotes denominated in Israeli shekels with "Free Palestine" stickers on them, in Ramallah, West Bank, in 2011. (Credit: Abbas Momani/AFP)
Facing a deep financial crisis, the Palestinian Authority (PA) is increasingly at risk of collapse. For months, the Ramallah-based administration has struggled to pay civil servants, its institutions have slowed, and its ability to deliver basic services has been severely weakened.For nearly a year, Israel has withheld about $4.4 billion in Palestinian tax revenues, according to the Palestinian Finance Ministry, depriving the PA of its main source of income. These funds, mainly from VAT and customs duties collected by Israel on the PA’s behalf under the Paris Protocol, account for roughly 70% of public revenue. The sudden budget shortfall, combined with other Israeli restrictions and intensified military operations in the occupied West Bank, has disrupted the Palestinian economy and institutions. In the news In the Palestinian West...
Facing a deep financial crisis, the Palestinian Authority (PA) is increasingly at risk of collapse. For months, the Ramallah-based administration has struggled to pay civil servants, its institutions have slowed, and its ability to deliver basic services has been severely weakened.For nearly a year, Israel has withheld about $4.4 billion in Palestinian tax revenues, according to the Palestinian Finance Ministry, depriving the PA of its main source of income. These funds, mainly from VAT and customs duties collected by Israel on the PA’s behalf under the Paris Protocol, account for roughly 70% of public revenue. The sudden budget shortfall, combined with other Israeli restrictions and intensified military operations in the occupied West Bank, has disrupted the Palestinian economy and institutions. In the news In the Palestinian West...
