Ramallah: The Minister of Finance and Planning, Estephan Anton Salameh, alerted that the financial situation of the Palestinian National Authority is at a critical and highly precarious stage, putting its ability to deliver essential public services at risk. This situation is exacerbated by Israel's refusal to transfer Palestinian tax revenues for the tenth consecutive month, deepening the fiscal crisis.
According to Palestine News and Information Agency - WAFA, Salameh addressed the press in Ramallah, expressing grave concerns about the lack of clearance revenues. He highlighted that Israel is withholding approximately $4.4 billion, equivalent to around 13 billion shekels, in Palestinian clearance funds, significantly worsening the fiscal crisis.
Salameh discussed reports of alleged Israeli plans to confiscate these revenues under various pretexts, emphasizing that the clearance revenues constitute about 70 percent of Palestinian public income. He warned that without these funds, no country could sustain itself.
He noted that government institutions, including critical sectors like health, education, and security, are operating below minimum capacity. The Palestinian Authority requires one billion shekels monthly to function at this basic level, with austerity now mandatory.
Salameh explained that if Israel had fully transferred the tax revenues in 2025 as per agreements, the Authority would have managed a smaller deficit. However, due to withheld revenues and imposed deductions, the year ended with a deficit exceeding 4.5 billion shekels.
He outlined that domestic revenues in 2025 were approximately 5 billion shekels, while total clearance revenues were 10.293 billion shekels. Of this, Israel transferred only 1.951 billion shekels, covering the first four months.
He revealed that total Israeli deductions from clearance revenues amounted to 4.4 billion dollars, with 475 lawsuits against the Authority in Israeli courts totaling 45 billion shekels, alongside compensations of about 20 billion shekels.
By the end of 2025, the National Authority's indebtedness reached around 15.426 billion dollars, attributed to Israel's withholding of revenues rather than mismanagement.
Salameh highlighted that all feasible solutions have been exhausted, pushing the Authority towards collapse. The discipline in cities like Jenin, Nablus, and Hebron reflects societal values more than security.
A significant development in 2025 was the increase in foreign aid, with the treasury receiving approximately 850 million dollars, indicating international political backing for Palestinian rights.
He projected that 2026 will be the most challenging financial year in the Authority's history, with uncertainty surrounding clearance revenues and foreign support until at least June.
Emergency support mechanisms approved by donors last year yielded only 250 million dollars out of the anticipated 1.2 billion dollars.
The 2026 budget is being prepared, focusing on existential sectors. The draft budget includes measures to address the financial crisis, achieve social justice, and prevent tax evasion and smuggling, seen as national priorities.