Imad Rajabi – Palestine Economy Portal

Translated by Tamara Barakat

Data published by the Palestinian Ministry of Finance on Tuesday revealed that the Government’s overall contribution to the Pension Fund during 2015 reached 145 million shekels, forming 21% of the anticipated number for that period, which amounted to 702.2 million shekels. Moreover, the Government did not make any contributions to the Fund during the past two years.

The report also showed that the Government’s arrears to the Fund reached 556.2 million shekels in 2015.

The number of the Fund’s beneficiaries was around 35 thousand people who received salaries amounting to 30 million dollars each month.

Also, the report revealed that the Government’s contribution to the Fund was nothing but “crumbs” when compared with the statements of the Minister of Finance, Shukry Bshara, in which he explained that the Government’s debts to the Fund reached 1.6 billion dollars.

The economic expert, Samir Abdullah, said that the Government must place the issue of repaying its debts to the Fund on the top of its list of priorities.

Abdullah told the Palestine Economy Portal that many problems might occur if the Government does not meet its financial obligations to the Fund, including lawsuits filed by the retired employees against the Government and the work of the Fund might be banned. Also, it will lead to social problems since many of those retired rely solely on their pension, and so poverty and the dependability of the elderly on others will increase.

Bshara also said that the Ministry of Finance paid 10 million shekels each month during 2015 to the Pension Fund, and emphasized that “this amount of money will double to 20 million shekels each month starting from the beginning of 2016 in order to decrease the debt.”