The Palestinian Ministry of Finance announced on Monday a significant development in addressing the payroll challenges facing its public sector employees.
As per the latest statement, the Ministry, in coordination with the Palestinian Monetary Authority, has arranged for a 50% salary advance to be disbursed to government employees and retirees for the month of October.
This advance will be facilitated through local banks, ensuring a minimum payout of 1800 Shekels.
This decisive move comes in the wake of the Palestinian Authority’s refusal to accept tax revenues collected by Israel on behalf of the Palestinian market.
This tax revenue, which includes a 3% commission for Israel, forms a significant part of the authority’s budget.
The refusal to accept these funds last month was a reaction to the Israeli government’s decision to deduct a portion of the revenue destined for the Gaza Strip. This deduction was intended to cover various expenditures in Gaza, including salaries, healthcare sector operations, and fuel purchases.
Tax revenues, commonly referred to as clearance revenues, constitute two-thirds of the Palestinian Authority’s budget.
The Ministry’s decision to offer salary advances illustrates the critical financial situation facing the Palestinian government, as it navigates through complex fiscal challenges amidst ongoing political tensions.
The Ministry’s announcement underscores the continuing economic strain in Palestinian territories, where government employees and the broader public sector play a vital role in maintaining stability and providing essential services.
The provision of these salary advances reflects the government’s commitment to supporting its employees in challenging times, even as it grapples with significant budgetary constraints.
