Palestinian Finance Ministry reveals partial salary disbursement amid financial crisis
(MENAFN) Amid a persisting financial crisis exacerbated by declining international support and the Palestinian Authority's refusal to accept tax revenues collected by Israel on its behalf, the Palestinian Ministry of Finance announced on Tuesday its decision to disburse 60 percent of December's salaries to employees in both the civil and military sectors. This move comes as a response to the ongoing financial challenges faced by the Palestinian Authority, which has been grappling with a significant decrease in revenue streams, particularly the cessation of tax transfers from Israel.
In a statement released by the ministry, it was clarified that the scheduled date for distributing public employees' salaries for December 2023 is set for the following day, Wednesday, with payments amounting to 60 percent of the salary, with a minimum threshold of 2,000 shekels. This partial payment signifies the Authority's efforts to mitigate the financial strain experienced by its workforce, albeit falling short of providing full salary disbursements.
The financial plight confronting Palestinian Authority employees has persisted for over two years, as the Authority struggles to meet its financial obligations amid dwindling resources. Notably, the inability to pay full salaries has not only affected civil servants but has also hindered the Authority's ability to fulfill its financial commitments to the private sector, exacerbating economic challenges within Palestinian territories.
The Ministry further affirmed its commitment to addressing the outstanding dues owed to employees, pledging to disburse them as soon as financial capabilities permit. This assurance underscores the Authority's recognition of its responsibility towards its workforce and its determination to navigate through the prevailing financial hardships with transparency and accountability.
The decision to reject the tax revenues (clearance) collected by Israel, which are intended for goods entering the Palestinian market, stems from the Palestinian Authority's objection to an Israeli deduction of USD140 million from this fund. The deduction, purportedly allocated for expenditures in the Gaza Strip, was met with opposition by the Authority, further complicating the already strained economic relationship between the two entities.
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