Mon Dec 10, 2012 11:29PM
Arab countries pledge to assist the Palestinian Authority with its budget shortages. Since Palestine's upgrade at the U-N, Israel has withheld taxes owed to Palestine and taken further punitive measures by expanding settlements.
Arab states have made an agreement to pay the Palestinian Authority $100 Million per month in order to assist with their debt deficit. This followed Palestinian gaining a non member status at the United Nations General Assembly. Since this victory, Israel has withheld tax revenues collected on behalf of the Palestinian Authority in order to ostensibly pay off an electricity debt. As one of the main funding donors of the Palestinian Authority, America has furthermore threatened to withdraw funding from the PNA. In the past the PNA has relied on donor funding to pay their deficit which the World Bank forecast to be $1.5 billion for 2012. The Arab ministers have called for a donors conference to discuss ways to support the Palestinian people in the West Bank and discuss reconstruction in the Gaza Strip. Although the Arab states pledged to pay 100 million dollars per month to the Palestinian authority the pal authority stated in a meeting last week they may need up to 240 million per month as they have to pay a deficit and Israel are now withdrawing funds and tax revenues.