Translated by Sabrin Qadah

The monthly data of the Palestinian monitory ministry showed the decline of funds in which they declined in the first seven months of year 2016 by 220 million shakels (about $85 million) than the same period of last year.

The total exterior fund to the budget amounted to 850 million shakel ($487 million) since the beginning of july this year , while it amounted to 2 billions and 71 million shakel ($ 545 million) in the same period of last year.

The World Bank has recently issued a report that showed a decline in the foreign aid to the Palestinian authority by 50% in the past three years warning that an economic crisis might occur.  

In 2013, international donors, especially the European Union and the United States, gave direct aid that mounted to $ 1.3 billion to support the budget. In the current year, this figure is expected to decrease below $ 700 million, including causing a large financial gap.

According to the Bank, this decrese will impose a severe pressure on the budget, and put the pension system on the verge of collapse.

The report submitted by the World Bank, and other reports from the International Monetary Fund and UNCTAD on the Palestinian economic situation, showed the depth of the crisis in the accumulated fiscal deficit and the needs of the financial power.

on his part, the head of the Palestinian Economic Council for Development and Reconstruction " PECDAR " D . Mohammed Shtayyeh attributed the decline in the doner’s aid to the faltering Palestinian - Israeli political track , because the goal of these funds is to assist in reaching a political agreement . "

Shtayyeh also warned of the negative impact of declining aid to the fact that these funds are allocated to securing government employees whom the government is struggling to secure a monthly salary wage bill.

He added that the decline in aid will affect the government's cashing in on some sectors and development projects , and meeting its debts to the private sector, which will develop fatigue, which ultimately will affect the size of the investment . "