The Palestinian government said on Monday that President Mahmoud Abbas adopted the general budget for the year 2025 with a financial deficit close to 7 billion shekels (1.9 billion dollars).
The government added in a statement, “The total expected revenue for 2025 is approximately 16,041 billion shekels, including local revenues expected 5,807 billion shekels, and clearing revenues are 10.234 billion shekels, while the total public expenditures is expected to reach 20.645 billion shekels,” the government added in a statement.
“In the event that the current illegal Israeli deductions of the clearing money continued, it is expected that the financing gap will reach 6,923 billion shekels,” the statement continued.
The government stated – in its statement – that this financing gap “is” without calculating external support, as the government seeks to recruit external financing sources to address the possible deficit in the 2025 budget. “
The Israeli government continues to deduct sums of money from the tax funds gathered on behalf of the Palestinian Authority for the goods through which it passes to the Palestinian market in exchange for a 3%financial commission.
The government stated – in its statement – that the 2025 budget aims to “achieve a balance between meeting the increasing needs of citizens and the requirements of financial and administrative reform, in light of the continued Israeli illegal deductions of clearing funds, which exceeded 7 billion shekels in recent years.”
The Palestinian government cannot fulfill its financial obligations for more than two years, whether for its employees who have worked to pay a percentage of their salaries or the private sector, which provides them with services in the field of health, construction or lending.
Public sector employees have not received any percentage of the salary of last February until today.
Financial blockade
“The government focuses in the 2025 budget on controlling public spending and mobilizing external financing to support priority projects, with the aim of enhancing the ability to fulfill financial obligations, including paying employees salaries and paying financial dues to suppliers from the private sector and banks,” the statement said.
The government added that “a package of austerity measures aimed at reducing operational and capitalist expenses has been adopted to a minimum, to counter the financial blockade.”
The government reviewed some of these measures, which include “reviewing organizational structures, integrating or canceling unnecessary institutions, stopping accessories, buying government buildings and limiting their rental, in addition to suspending the purchase or replacement of government cars except for the utmost necessity, and control of unnecessary travel missions has also been strengthened, and to direct development expenses to complete the ongoing projects only.”
