Fayyad to Detail Palestinian Budget Crisis to Arab League

Posted July 26th, 2011 at 6:10 am (UTC-5)
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Palestinian Authority Prime Minister Salam Fayyad is set to outline the government's budget crisis at an emergency meeting of the Arab League, and to urge members to deliver pledged aid.

Palestinian officials said the meeting Tuesday in Cairo was called at the request of Palestinian President Mahmoud Abbas, as the West Bank government struggles with a huge budget shortfall.

The Palestinian Authority said earlier this month it would only pay its employees half their salary, after donors failed to deliver on their pledges of financial aid.

Fayyad said the government had only received $330 million of the $971 million pledged for this year, and blamed countries in the region for the drop-off in funding.

The Palestinian government relies on foreign donors to help make up its yearly budget. It also receives tax and customs revenue, which Israel collects on its behalf.