PA may soon pay only 40% of public salaries amid Israeli fund withholding — official

Jacob Magid is The Times of Israel's US bureau chief

The Palestinian Authority may soon be forced to cut the salaries of public employees amid a spiraling financial crisis, primarily caused by Israel withholding tax revenues, which make up the majority of its budget, a PA official tells The Times of Israel.

Israel hasn’t made a monthly transfer of tax revenues, as required by the Oslo Accords, since May of last year.

The PA says the total amount of funds that Israel owes Ramallah is above $4 billion.

For much of the past year, the PA has only been paying 60% of the salaries of public employees.

The PA official says that Ramallah may soon have to drop that figure to 40% due to a lack of funds

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