Editing Palestinian Authority (section)

==Economy==
{{further|Economy of the State of Palestine}}
The [[Gaza International Airport]] was built by the PA in the city of [[Rafah]], but operated for only a brief period before being destroyed by Israel following the outbreak of [[Al-Aqsa Intifada]] in 2000. A seaport was also being constructed in Gaza but was never completed.

Some Palestinians are dependent on access to the Israeli job market. During the 1990s, some Israeli companies began to replace Palestinians with foreign workers.{{citation needed|date=October 2022}} The process was found to be economical and also addressed security concerns. This hurt the Palestinian economy, in particular in the Gaza strip, where 45.7% of the population is under the poverty line according to the [[CIA World Factbook]], but it also affected the West Bank.

===Budget===
According to the [[World Bank]], the [[budget deficit]] in PNA was about $800 million in 2005, with nearly half of it financed by donors. The World Bank stated, "The PA's fiscal situation has become increasingly unsustainable mainly as a result of uncontrolled government consumption, in particular a rapidly increasing public sector wage bill, expanding social transfer schemes and rising net lending."<ref>{{cite web |url=http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/MENAEXT/WESTBANKGAZAEXTN/0,,contentMDK:20805063~pagePK:141137~piPK:141127~theSitePK:294365,00.html |title=West Bank & Gaza – The Palestinian Economy and the PA's Fiscal Situation- Current Status as of February 1, 2006 |publisher=World Bank |date=1 February 2006 |access-date=26 November 2012 |archive-date=8 October 2008 |archive-url=https://web.archive.org/web/20081008040909/http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/MENAEXT/WESTBANKGAZAEXTN/0,,contentMDK:20805063~pagePK:141137~piPK:141127~theSitePK:294365,00.html |url-status=dead }}</ref>

In June 2011, Prime Minister [[Salam Fayyad]] stated that the Palestinian Authority is facing a financial crisis because funds pledged by donor nations have not arrived on time. Fayyad said that "In 2011, we have been receiving $52.5 million dollars a month from the [[Arab]] countries, which is much less than the amount they committed to deliver."<ref>{{cite news |url=http://www.maannews.net/eng/ViewDetails.aspx?ID=392837 |title=Fayyad: Promised donor aid not arriving |agency=Ma'an News Agency |date=11 May 2011 |access-date=26 November 2012 |archive-url=https://web.archive.org/web/20130513210056/http://www.maannews.net/eng/ViewDetails.aspx?ID=392837 |archive-date=13 May 2013 |url-status=dead }}</ref>

In June 2012, the Palestinian Authority was unable to pay its workers' salaries as a result of their financial issues, including a cutback in aid from foreign donors, and Arab countries not fulfilling their pledges to send money to the Palestinian Authority, in which the Palestinian Authority is heavily dependent. Finance Minister Nabil Kassis called the crisis "the worst" in three years.<ref>{{cite news| url=https://www.huffingtonpost.com/2012/07/03/palestinian-authority-salaries_n_1646032.html | work=HuffPost| title=Palestinian Authority Can't Pay Salaries | date=3 July 2012}}</ref><ref>{{cite web |url=https://abcnews.go.com/International/wireStory/citing-crisis-palestinians-pay-salaries-16702998 |title=International News |publisher=ABC News|location=United States |date=21 November 2012 |access-date=26 November 2012 |archive-url=https://web.archive.org/web/20120703230639/https://abcnews.go.com/International/wireStory/citing-crisis-palestinians-pay-salaries-16702998 |archive-date=3 July 2012 |url-status=dead }}</ref><ref>{{cite web |url=https://www.usnews.com/news/world/articles/2012/07/03/citing-crisis-palestinians-cant-pay-salaries |title=Citing crisis, Palestinians can't pay salaries – ''U.S. News & World Report'' |publisher=Usnews.com |date=3 July 2012 |access-date=26 November 2012 |archive-url=https://web.archive.org/web/20130511224129/http://www.usnews.com/news/world/articles/2012/07/03/citing-crisis-palestinians-cant-pay-salaries |archive-date=11 May 2013 |url-status=dead }}</ref><ref>{{cite web |url=http://www.canada.com/business/Palestinian+Authority+delays+June+government+salaries+worst+money/6875910/story.html |title=Article |publisher=canada.com |access-date=26 November 2012 }}{{dead link|date=January 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> Adding to the complications are the fact that in the same month, the head of the [[Palestine Monetary Authority]], [[Jihad Al-Wazir]], stated that the Palestinian Authority reached the maximum limit of borrowing from Palestinian banks.<ref>{{cite news |url=http://www.maannews.net/eng/ViewDetails.aspx?ID=494054 |title=Monetary chief: PA bank borrowing reaches limit |agency=Ma'an News Agency |access-date=26 November 2012 |archive-url=https://web.archive.org/web/20130528013852/http://www.maannews.net/eng/ViewDetails.aspx?ID=494054 |archive-date=28 May 2013 |url-status=dead }}</ref>

In July 2012, Prime Minister Salam Fayyad urged Arab countries to send the money they promised, which amounts to tens of millions of dollars, as they have not made good on their pledges, while [[Western world|Western]] donors have.<ref>{{cite news | url=https://news.yahoo.com/palestinian-pm-urges-arabs-send-promised-cash-100713941.html | publisher=[[Yahoo! News]] | title=Palestinian PM urges Arabs to send promised cash | location=Ramallah | access-date=15 January 2017 | archive-date=5 March 2016 | archive-url=https://web.archive.org/web/20160305135607/http://news.yahoo.com/palestinian-pm-urges-arabs-send-promised-cash-100713941.html | url-status=dead }}</ref> The Palestinian labor minister [[Ahmed Majdalani]] also warned of the consequences of a shortfall in the delivery of aid from Arab donor nations.<ref>{{cite web |author=<!--[if IE 6]> <![endif]--> |url=http://english.alarabiya.net/articles/2012/07/01/223836.html |title=Palestinian authority faces 'worst funds crisis since founding': Labor minister |publisher=Al Arabiya |date=1 July 2012 |access-date=26 November 2012 |archive-url=https://web.archive.org/web/20120708040549/http://english.alarabiya.net/articles/2012/07/01/223836.html |archive-date=8 July 2012 |url-status=dead}}</ref>

In order to help the Palestinian Authority solve its crisis, Israel sought $1 billion in loans from the [[International Monetary Fund]], intending to transfer this loan to the Palestinian Authority who would pay them back when possible. The IMF rejected the proposal because it feared setting a [[precedent]] of making IMF money available to non-state entities, like the Palestinian Authority, which as a non-state cannot directly request or receive IMF funding.<ref>{{cite web |author=<!--[if IE 6]> <![endif]--> |url=http://english.alarabiya.net/articles/2012/07/02/223967.html |title=Israel sought $1 bln IMF loan for Palestinians: report |publisher=Al Arabiya |date=2 July 2012 |access-date=26 November 2012 |archive-url=https://web.archive.org/web/20120929045236/http://english.alarabiya.net/articles/2012/07/02/223967.html |archive-date=29 September 2012 |url-status=dead}}</ref><ref>{{cite web|url=https://www.google.com/hostednews/afp/article/ALeqM5gEjiMcwlEdyaJBUcYQV58bqnwIZg?docId=CNG.5a68850480a01fb7349833bd9c847954.51 |archive-url=https://web.archive.org/web/20130131114353/http://www.google.com/hostednews/afp/article/ALeqM5gEjiMcwlEdyaJBUcYQV58bqnwIZg?docId=CNG.5a68850480a01fb7349833bd9c847954.51 |url-status=dead |archive-date=31 January 2013 |title=AFP: Israel sought $1 billion IMF loan for Palestinians |date=2 July 2012 |access-date=26 November 2012}}</ref><ref>{{cite news | url=http://in.reuters.com/article/palestinians-israel-imf-idINL6E8I24JH20120702 | work=Reuters| title=Israel sought bln IMF loan for Palestinians | date=2 July 2012 | access-date=6 July 2021 | archive-date=18 March 2020 | archive-url=https://web.archive.org/web/20200318190519/https://in.reuters.com/article/palestinians-israel-imf-idINL6E8I24JH20120702 | url-status=dead }}</ref><ref>{{cite web|url=http://www.hurriyetdailynews.com/israel-sought-1-billion-imf-loan-for-palestinians.aspx?pageID=238&nID=24537&NewsCatID=359 |title=INTERNATIONAL – Israel sought $1 billion IMF loan for Palestinians |work=Hürriyet Daily News |date=2 July 2012 |access-date=26 November 2012}}</ref>

In mid-July 2012, it was announced that [[Saudi Arabia]] would imminently send $100 million to the Palestinian Authority to help relieve them of their financial crisis. Still, the Palestinian Authority is seeking the support of other countries to send more money to help fix a budget deficit that is approximately $1.5 billion for 2012, and it is estimated that they need approximately $500 million more.  [[Ghassan Khatib]], a Palestinian Authority spokesman, said, "This $100 million is important and significant because it's coming from a leading Arab state, and this hopefully can be an example for other countries to follow... We will remain in need of external funding. Whenever it is affected, then we will be in crisis."<ref name="ReutersSaudi">{{cite news | url=http://uk.reuters.com/article/uk-palestinians-saudiarabia-aid-idUKBRE86E0BF20120715 | archive-url=https://web.archive.org/web/20160101105130/http://uk.reuters.com/article/uk-palestinians-saudiarabia-aid-idUKBRE86E0BF20120715 | url-status=dead | archive-date=1 January 2016 | title=Saudis to give $100 million to cash-strapped Palestinians | date=15 July 2012 | work=Reuters| access-date=15 July 2012 | author=Browning, Noah}}</ref><ref name="JPostSaudiArabia">{{cite news | url=http://www.jpost.com/MiddleEast/Article.aspx?id=277545 | title=S. Arabia to transfer $100m. to PA to avert crisis | work=The Jerusalem Post | date=15 July 2012 | access-date=15 July 2012 | author=Toameh, Khaled Abu}}</ref>

By 15 July 2012, Palestinian Authority workers received only 60% of their salaries for June, which caused discontent against the government.<ref name="JPostSaudiArabia" />

In a "goodwill gesture" to the Palestinian Authority to renew dialogue with Israel, Israeli prime minister [[Benjamin Netanyahu]] and Finance Minister [[Yuval Steinitz]] decided to give Ramallah a NIS 180 million advance on tax money it transfers on a monthly basis. The Israeli government's economic cabinet also decided to increase the number of Palestinian construction workers allowed in Israel by approximately 5,000. One Israeli official said that the money helped the Palestinian Authority pay its salaries before [[Ramadan]], and it was part of Israel's policy of helping to "preserve the Palestinian economy."<ref name="180 NIS to P.A.">{{cite web | url=http://www.jpost.com/DiplomacyAndPolitics/Article.aspx?id=278536 | title=Israel advances PA NIS 180m. to ease financial crisis | work=The Jerusalem Post | date=23 July 2012 | access-date=23 July 2012 | author=Keinon, Herb | url-status=dead | archive-url=https://web.archive.org/web/20120723094532/http://www.jpost.com/DiplomacyAndPolitics/Article.aspx?id=278536 | archive-date=23 July 2012}}</ref>

The [[World Bank]] issued a report in July 2012 that the Palestinian economy cannot sustain statehood as long as it continues to heavily rely on foreign donations and the private sector fails to thrive. The report said that the Palestinian Authority is unlikely to reach fiscal sustainability until a peace deal is achieved that allows the private sector to experience rapid and sustained growth. The World Bank report also blamed the financial issues on the absence of a final status agreement that would allow for a two-state solution to the Israeli-Arab conflict.<ref name="World Bank financial issues">{{cite web | url=http://www.jpost.com/MiddleEast/Article.aspx?id=278897 | title=Palestinian economy cannot support state | work=The Jerusalem Post | date=25 July 2012 | access-date=25 July 2012 | author=Lazaroff, Tovah}}</ref>

As of May 2011, the Palestinian Authority spent $4.5 million per month paying Palestinian prisoners. The payments include monthly amounts such as NIS 12,000 ($3,000) to prisoners who have been imprisoned for over 30 years. The salaries, funded by the PA, are given to [[Fatah]], [[Hamas]], and [[Islamic Jihad Movement in Palestine|Islamic Jihad]] prisoners, despite financial hardships by the Palestinian Authority. These payments make up 6% of the PA's budget.<ref name="Budget">{{cite web | url=http://www.timesofisrael.com/cash-strapped-pa-spends-4-5-million-per-month-compensating-security-detainees/ | title=PA spends 6% of its budget paying Palestinians in Israeli jails, families of suicide bombers | work=The Times of Israel | date=3 September 2012 | access-date=4 September 2012 | author=Ben Zion, Ilan}}</ref>

{{As of|2015|January}}, the PA has a debt of 1.8 bln NIS to the [[Israel Electric Corporation]].<ref>{{cite news|url=http://www.ynetnews.com/articles/0,7340,L-4620683,00.html |title=Electricity company cuts supply to the PA over NIS 1.8 billion debt |newspaper=Ynetnews |date=29 January 2015 |publisher=Yedioth Internet |access-date=29 January 2015|last1=Gutman |first1=Lior }}</ref>

In 2017, the PA received $693 million from foreign donors, of which $345 million, was paid out through the [[Palestinian Authority Martyrs Fund|Martyrs Fund]] in the form of stipends to convicted militants and their families.<ref name="LieberForiegnAid">{{cite news|last1=Lieber|first1=Dov|title=PA payments to prisoners, 'martyr' families now equal half its foreign aid|url=http://www.timesofisrael.com/pa-payments-to-prisoners-martyr-families-now-equal-half-its-foreign-aid/|access-date=31 July 2017|newspaper=The Times of Israel|date=31 July 2017}}</ref>

===Corruption===
A poll conducted by the [[Palestinian Center for Policy and Survey Research]] revealed that 71% of Palestinians believe there is corruption in the Palestinian Authority institutions in the [[West Bank]], and 57% say there is corruption in the institutions of the dismissed Palestinian government in the [[Gaza Strip]]. 34% say that there is no freedom of the press in the West Bank, 21% say that there is press freedom in the West Bank, and 41% say there is to a certain extent. 29% of Palestinians say people in the West Bank can criticize the government in the West Bank without fear.<ref name=PSR>{{cite web|title=Palestinian Public Opinion Poll No. 44|url=http://www.pcpsr.org/survey/polls/2012/p44efull.html#domestic|access-date=13 July 2012|url-status=dead|archive-url=https://web.archive.org/web/20120714000218/http://www.pcpsr.org/survey/polls/2012/p44efull.html#domestic|archive-date=14 July 2012}}</ref><ref name=Ynet>{{cite news|last=Savir|first=Aryeh|title=Arab poll: Palestinian Authority is corrupt|url=http://www.ynetnews.com/articles/0,7340,L-4244044,00.html|access-date=13 July 2012|newspaper=Yedioth Ahronot|date=18 June 2012}}</ref><ref name=Congress>{{cite web|title=Testimony of Jim Zanotti, Specialist in Middle Eastern Affairs, Congressional Research Service |url=http://foreignaffairs.house.gov/112/HHRG-112-FA13-WState-ZanottiJ-20120710.pdf |work=Chronic Kleptocracy – Corruption within the Palestinian Political Establishment |access-date=13 July 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120915135516/http://foreignaffairs.house.gov/112/HHRG-112-FA13-WState-ZanottiJ-20120710.pdf |archive-date=15 September 2012 }}</ref>

At a hearing of the [[House Committee on Foreign Affairs]] in the [[United States Congress]] on 10 July 2012, titled "Chronic [[Kleptocracy]]: Corruption within the Palestinian Political Establishment," it was stated that there is serious corruption within the political establishment and in financial transactions.<ref name=Congress1>{{cite web |title=Chronic Kleptocracy: Corruption within the Palestinian Political Establishment |url=http://foreignaffairs.house.gov/hearings/view/?1454 |access-date=13 July 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120715062400/http://foreignaffairs.house.gov/hearings/view/?1454 |archive-date=15 July 2012 }}</ref> The experts, analysts, and specialists testified on corruption within financial transactions concerning [[Mahmoud Abbas]], his sons Yasser and Tareq, and the Palestine Investment Fund, among others, as well as on the limiting of freedom of the press, crushing political opposition, and cracking down on protestors. According to Representative [[Steve Chabot]], who testified at the hearing, "Reports suggest that Palestinian President Mahmoud Abbas, like his predecessor Yassir Arafat, has used his position of power to line his own pockets as well as those of his cohort of [[cronyism|cronies]], including his sons, Yasser and Tareq. The Palestinian Investment Fund, for example, was intended to serve the interests of the Palestinian population and was supposed to be transparent, accountable, and independent of the Palestinian political leadership. Instead, it is surrounded by allegations of [[Cronyism|favoritism]] and [[fraud]]." Concerning Abbas' children, Chabot stated that "Even more disturbingly, Yasser and Tareq Abbas—who have amassed a great deal of wealth and economic power—have enriched themselves with U.S. taxpayer money. They have allegedly received hundreds of thousands of dollars in [[USAID]] contracts."<ref name=Congress2>{{cite web |last=Schanzer |first=Jonathan |title=Chronic Kleptocracy: Corruption Within The Palestinian Political Establishment |url=http://foreignaffairs.house.gov/112/HHRG-112-FA13-WState-SchanzerJ-20120710.pdf |publisher=House Committee on Foreign Affairs |access-date=13 July 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120813023220/http://foreignaffairs.house.gov/112/HHRG-112-FA13-WState-SchanzerJ-20120710.pdf |archive-date=13 August 2012 }}</ref><ref name=Congress3>{{cite web |last=Chabot |first=Steve |title=Chronic Kleptocracy: Corruption within the Palestinian Political Establishment |url=http://foreignaffairs.house.gov/112/HHRG-112-FA13-MState-C000266-20120710.pdf |access-date=13 July 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120915135459/http://foreignaffairs.house.gov/112/HHRG-112-FA13-MState-C000266-20120710.pdf |archive-date=15 September 2012 }}</ref>

In April 2013, the Palestinian organization Coalition for Transparency in Palestine said it was investigating 29 claims of stolen public funds. In addition, they said that the PA "has problems with money laundering, nepotism and misusing official positions." Twelve earlier claims were investigated and sent to the courts for resolution. In response, Palestinian Authority Justice Minister Ali Muhanna said that they have "made large strides in reducing corruption."<ref>{{Cite web|url=https://news.yahoo.com/palestinian-watchdog-corruption-continues-182306963.html|title=Palestinian watchdog: corruption continues|publisher=Yahoo! News|access-date=15 January 2017|archive-date=27 April 2013|archive-url=https://web.archive.org/web/20130427103224/https://news.yahoo.com/palestinian-watchdog-corruption-continues-182306963.html|url-status=dead}}</ref>

===International aid===
{{see also|International aid to Palestinians|United States security assistance to the Palestinian National Authority|taxation in the Palestinian territories}}

The majority of aid to the Palestinian Authority comes from the United States and [[European Union]]. According to figures released by the PA, only 22 percent of the $530,000,000 received since the beginning of 2010 came from Arab donors. The remaining came from Western donors and organizations. The total amount of foreign aid received directly by the PA was $1.4 billion in 2009 and $1.8 billion in 2008.<ref name="Ref_ak">{{cite web|url=http://www.businessweek.com/news/2010-12-08/palestinians-lure-banks-with-first-sukuk-bills-islamic-finance.html |archive-url=https://web.archive.org/web/20101212090617/http://www.businessweek.com/news/2010-12-08/palestinians-lure-banks-with-first-sukuk-bills-islamic-finance.html |url-status=dead |archive-date=12 December 2010 |title=Palestinians Lure Banks With First Sukuk Bills: Islamic Finance |work=Bloomberg Businessweek |date=8 December 2010 }}</ref>

Palestinian leaders stated the Arab world was "continuing to ignore" repeated requests for help.<ref name="Ref_al">{{cite web|last=Abu |first=Khaled |url=http://www.jpost.com/MiddleEast/Article.aspx?id=187993 |title=Abbas's plea to Arab states: Show me the money! |work=The Jerusalem Post |date=14 September 2010 |access-date=5 January 2013}}</ref>

The US and the EU responded to Hamas' political victory by stopping direct aid to the PA, while the US imposed a financial blockade on PA's banks, impeding some of the [[Arab League]]'s funds (e.g. Saudi Arabia and Qatar) from being transferred to the PA.<ref name="LemondeA">{{Citation | url=http://www.lemonde.fr/proche-orient/article/2006/05/09/le-quartet-cherche-une-solution-a-la-banqueroute-palestinienne_769645_3218.html| date=9 May 2006 | access-date=9 May 2006 |work=Le Monde | title=Le Quartet cherche une solution à la banqueroute palestinienne|language=fr}}</ref> On 6 and 7 May 2006, hundreds of Palestinians demonstrated in Gaza and the West Bank demanding payment of their wages.

In 2013 there are 150,000 government employees. Income to run the government to serve about 4 million citizens, comes from donations from other countries.<ref>{{Cite news | title=Palestine leader warns of cash crisis | url=https://news.yahoo.com/ap-interview-palestinian-pm-warns-cash-crisis-192032134.html | newspaper=Florida Today | location=Melbourne, Florida | pages=4A | date=7 January 2013 | access-date=15 January 2017 | archive-date=1 January 2016 | archive-url=https://web.archive.org/web/20160101105129/http://news.yahoo.com/ap-interview-palestinian-pm-warns-cash-crisis-192032134.html | url-status=dead }}</ref><!---the soft copy article is more extensive than the hard copy one, but this summary is taken from the hard copy--->

In 2020, Swedish foreign aid minister [[Peter Eriksson (politician)|Peter Eriksson]] ([[Green Party (Sweden)|Green Party]]) announced a 1.5 billion SEK support package (about 150 million euro) to the Palestine Authority in 2020–2024. This announcement came after several other countries had reduced aid due to indicators of corruption and that funds go towards the salaries of militants.<ref>{{Cite web|title=Nytt palestinskt miljardbistånd: "Upprörande"|url=https://www.varldenidag.se/nyheter/nytt-palestinskt-miljardbistand-upprorande/reptfo!dOT07yEKDdqJpuMm8WVW@w/|access-date=4 July 2020|website=varldenidag.se|language=sv}}</ref>

====Economic sanctions following January 2006 legislative elections====
{{main|2006–2007 economic sanctions against the Palestinian National Authority}}
Following the [[2006 Palestinian legislative election|January 2006 legislative elections]], won by [[Hamas]], the [[Quartet on the Middle East|Quartet]] (the United States, Russia, the European Union, and the United Nations) threatened to cut funds to the Palestinian Authority. On 2 February 2006, according to the [[Agence France Presse|AFP]], the PA accused Israel of "practicing collective punishment after it snubbed the US calls to unblock funds owed to the Palestinians." Prime minister [[Ahmed Qorei]] "said he was hopeful of finding alternative funding to meet the budget shortfall of around 50 million dollars, needed to pay the wages of public sector workers, and which should have been handed over by Israel on the first of the month." The US Department criticized Israel for refusing to quickly unblock the funds. The funds were later unblocked.<ref name="Ref_2006c">{{cite news | title=Palestinian fury at Israeli refusal to unblock funds | agency=Agence France-Presse | date=3 February 2006 | url=http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/business/2006/February/business_February58.xml§ion=business&col= | access-date=29 October 2021 | archive-date=11 May 2013 | archive-url=https://web.archive.org/web/20130511142417/http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data%2Fbusiness%2F2006%2FFebruary%2Fbusiness_February58.xml§ion=business&col= | url-status=dead }}</ref> However, ''The New York Times'' alleged on 14 February 2006 that a "destabilization plan" of the United States and Israel, aimed against [[Hamas]], winner of the January 2006 legislative elections, centered "largely on money" and cutting all funds to the PA once Hamas takes power, in order to delegitimize it in the eyes of the Palestinians. According to the news article, "The Palestinian Authority has a monthly cash deficit of some $60 million to $70 million after it receives between $50 million and $55 million a month from Israel in taxes and customs duties collected by Israeli officials at the borders but owed to the Palestinians." Beginning March 2006, "the Palestinian Authority will face a cash deficit of at least $110 million a month, or more than $1 billion a year, which it needs to pay full salaries to its 140,000 employees, who are the breadwinners for at least one-third of the Palestinian population. The employment figure includes some 58,000 members of the security forces, most of which are affiliated with the defeated [[Fatah]] movement." Since 25 January elections, "the Palestinian stock market has already fallen about 20 percent", while the "Authority has exhausted its borrowing capacity with local banks."<ref name="Erlanger2006">{{Citation | title=U.S. and Israelis Are Said to Talk of Hamas Ouster |work=The New York Times |date=14 February 2006 | url=https://www.nytimes.com/2006/02/14/international/middleeast/14mideast.html?ei=5094&en=d28cff5caa1702fa&hp=&ex=1139979600&partner=homepage&pagewanted=print | first=Steven | last=Erlanger | access-date=21 May 2010}}</ref>

====Use of European Union assistance====
In February 2004, it was reported that the [[European Union]] (EU) anti-fraud office ([[OLAF]]) was studying documents suggesting that [[Yasser Arafat]] and the Palestinian Authority had diverted tens of millions of dollars in EU funds to organizations involved in terrorist attacks, such as the [[Al-Aqsa Martyrs Brigades]]. However, in August 2004, a provisional assessment stated that "To date, there is no evidence that funds from the non-targeted EU Direct Budget Assistance to the Palestinian Authority have been used to finance illegal activities, including terrorism."<ref name="Olaf2004">{{cite press release|publisher=OLAF |date=10 August 2004 |title=OLAF Investigation into EU Budget Assistance for the Palestinian Authority |url=http://europa.eu.int/comm/anti_fraud/press_room/pr/2004/15_en.html |url-status=dead |archive-url=https://web.archive.org/web/20041010181148/http://europa.eu.int/comm/anti_fraud/press_room/pr/2004/15_en.html |archive-date=10 October 2004 }}</ref>

====United States foreign aid packages====
[[United States House Appropriations Subcommittee on State, Foreign Operations, and Related Programs|The US House for Foreign Operations]] announced a foreign assistance package to the Palestinian Authority that included provisions that would bar the government from receiving aid if it seeks statehood at the UN or includes Hamas in a unity government. The bill would provide $513 million for the Palestinian Authority.<ref>{{cite web |last=Leila |first=Hilary |url=http://www.jpost.com/DiplomacyAndPolitics/Article.aspx?id=231160 |title=US foreign aid package may put conditions on PA funding |work=The Jerusalem Post |date=27 July 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110802144737/http://www.jpost.com/DiplomacyAndPolitics/Article.aspx?id=231160 |archive-date=2 August 2011}}</ref>

====Payments to Palestinian prisoners in Israeli prisons====
On 22 July 2004, Salam Fayyad, PA Minister of Finance, in an article in the Palestinian weekly, ''The Jerusalem Times'', detailed the following payments to Palestinians imprisoned by the Israeli authorities:<ref name="Ref_av">{{Citation | title=A settlement for the prisoners | work=Jerusalem-Times.net | url=http://www.jerusalem-times.net/article/news/details/detail.asp?id=449&edition=539 | access-date=19 February 2006 | archive-url=https://web.archive.org/web/20060114065416/http://www.jerusalem-times.net/article/news/details/detail.asp?id=449&edition=539 | archive-date=14 January 2006 | url-status=dead }} Subscription only.</ref>

# Prisoner allowances increased between June 2002 and June 2004 to $9.6M USD monthly, an increase of 246 percent compared with January 1995 – June 2002.
# Between June 2002 and June 2004, 77M NIS were delivered to Palestinians held in Israeli prisons, compared to 121M NIS between January 1995 and June 2002, which is an increase of 16M NIS yearly. The increase of annual spending between the two periods registers 450 percent, which is much higher than the percentage increase of the number of prisoners.
# Between 2002 and 2004, the PA paid 22M NIS to cover other expenses – lawyers' fees, fines, and allocations for released prisoners. This includes lawyers' fees paid directly by the PA and fees paid through the Prisoners Club.
In February 2011, The Jerusalem Post revealed that the PA was paying monthly salaries to members of Hamas who are in Israeli prisons.<ref>{{Cite news|title=PA paying salaries to Hamas men in Israel's prisons|work=The Jerusalem Post 
|archive-url=https://web.archive.org/web/20110210035942/http://www.jpost.com/MiddleEast/Article.aspx?id=207540 |archive-date=10 February 2011 
| date= 9 February 2011
| first=Khaled | last=Abu Toameh
|url=http://www.jpost.com/MiddleEast/Article.aspx?id=207540
|access-date=2023-02-20}}</ref>

In March 2009, an extra 800 shekels ($190) was added to the stipends given to Palestinians affiliated with PLO factions in Israeli prisons, as confirmed by the head of Palestinian Prisoner Society in Nablus Ra'ed Amer. Each PLO-affiliated prisoner receives 1,000 shekels ($238) per month, an extra 300 shekels ($71) if they are married, and an extra 50 shekels ($12) for each child.<ref>{{cite news |url=http://www.maannews.net/eng/ViewDetails.aspx?ID=208966 |title=Extra 800 shekels added to PLO prisoner payments following Abbas' order |agency=Ma'an News Agency |access-date=26 November 2012 |archive-url=https://web.archive.org/web/20130528000532/http://www.maannews.net/eng/ViewDetails.aspx?ID=208966 |archive-date=28 May 2013 |url-status=dead }}</ref>

In 2016 the [[United Kingdom]] had a domestic debate about how its aid to the PA ended up funding prisoners incarcerated in Israel.<ref name="tdt_13June2016">{{cite news|title=UK aid 'indirectly spent on Palestinian terror groups' former Cabinet minister warns|url=https://www.telegraph.co.uk/news/2016/06/13/uk-aid-indirectly-spent-on-palestinian-terror-groups-former-cabi/|access-date=2 November 2016|newspaper=The Daily Telegraph|location=London|date=13 June 2016}}</ref> In October 2016 a sum of £25 million, constituting a third of its aid payments, was withheld pending the results of an investigation.{{citation needed|date=December 2019}}

====James G. Lindsay====
[[James G. Lindsay]], a former [[UNRWA]] general-counsel and fellow researcher for [[The Washington Institute for Near East Policy]], published a report regarding the use of international aid in the Palestinian Authority. Lindsay argued that internationally funded construction projects in the [[West Bank]] should try to minimize foreign labor and maximize the participation of Palestinian workers and management to ensure economic expansion through salaries, job training, and improved infrastructure. Lindsay stated that some financial control should stay in international hands to avoid "nepotism or corruption".<ref name="Ref_">{{Cite web
| archive-url= https://web.archive.org/web/20200728082309/https://www.washingtoninstitute.org/policy-analysis/view/tony-blair-takes-on-west-bank-aid
| archive-date = 28 July 2020
| last = Lindsay | first = James G.
| title= Tony Blair Takes on West Bank Aid 
| date = 19 November 2007
| series = Policywatch 1307
| url=https://www.washingtoninstitute.org/policy-analysis/tony-blair-takes-west-bank-aid
|website=The Washington Institute for Near East Policy
}}</ref>

Lindsay has also argued that in any peace settlement acceptable to Israel "there will be few, if any, Palestinian refugees returning to Israel proper".<ref name="Ref_" />
Lindsay suggested that internationally funded construction projects should try to benefit West Bank refugees who are willing to give up their longstanding demand for a "[[right of return]]". Lindsay also claimed that projects that will improve the living conditions of West Bank refugees could also be seen as part of the reparations or damages to be paid to refugees in any likely Israeli-Palestinian agreement. Lindsay criticized the Palestinian Authority treatment of these refugees:
<blockquote>PA projects are not likely to address refugee needs, however, since the PA has traditionally deferred to the UN Relief and Works Agency (UNRWA) regarding infrastructure in refugee camps.<ref name="Ref_" /></blockquote>