Editing Palestinian Authority (section)

===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>