Palestine Economy Portal

Translated by Tamara Barakat

The overall public and development budget for 2016 reached, according to the Ministry of Finance, 16 billion and 577 million shekels (4.251 billion dollars), 3 billion and 901 million dollars of which are embarked for the public budget and 350 million dollars for the development budget.

The public budget law, which was approved by the President two weeks ago, reveals a drop in the forecasted net public revenue and the sources of funding for the budget by around 3 billion shekels in comparison to last year. This year they are estimated at 16 billion and 577 million shekels, while last year they were estimated at 19 billion and 570 million shekels.

External financial aid was estimated in the 2016 budget at 3 billion and 881 million shekels, marking a great drop from the estimated 7 billion and 400 thousand dollars in 2015.  

The budget law also anticipated that the financial deficit before funding would be 5 billion and 388 million dollars. After the receipt of the external and local funding, the financial gap is estimated at 1.5 billion shekels, noting that in 2015, the budget did not anticipate that a financial gap would still exist after the funding.

The law also demonstrates that the Government is seeking to decrease the public expenditure, which in addition to the net lending were estimated at 16 billion and 577 million shekels, while they were estimated at 19 billion and 570 million shekels in 2015.

The greatest drop was anticipated for grants designated for the development expenditure, decreasing by about 3 billion and 300 million shekels. These grants were estimated at 956 million shekels in the 2016 budget, while they were estimated at 4 billion and 290 million shekels in the 2015 budget.

Moreover, the law shows that the Government aims to decrease borrowing from banks. The anticipated the bank financing for 2016 reached 975 million shekels, while it was estimated at a billion and 170 million shekels last year.

The budget law also reveals that the Government wants to decrease the net backlog of accumulated arrears, which was estimated at 975 million shekels this year, and a billion and 170 million shekels last year.