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Friday, March 6, 2026
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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