RAMALLAH, MAR 26 /DNA/ – Government Communication Center – The Palestinian Ministry of Finance has confirmed that the Israeli occupation authorities have blocked the transfer of approximately NIS 7 billion in Palestinian clearance revenues since 2019, deepening the financial crisis facing the Palestinian Government.
In a statement issued Tuesday, the Ministry said that the Israeli occupation authorities justify blocking the transfer of these funds to the Palestinian Government under several false pretexts, including:
▪︎ Allocations for Gaza – NIS 2 billion have been withheld under this allegation.
▪︎ Allocations for the families of Palestinian martyrs and detainees – NIS 3.7 billion has been deducted under this pretext.
▪︎ Border exit tax – NIS 1.2 billion has been deducted as departure tax paid by travellers at the border crossing with Jordan.
Escalation of deductions and delays in transfer since 2023 war
Since the start of Israel’s war on the Palestinian people in the Gaza Strip in October 2023, the Israeli occupation has intensified financial restrictions against the Palestinian Government, including by doubling clearance revenue deductions to 50% of the total monthly amount while deliberately delaying payments in an unprecedented manner.
Clearance revenues, which should be transferred to the Palestinian Government at the beginning of each month (first week), are now withheld beyond the middle of the month, exacerbating the Government’s fiscal crisis.
Additionally, the Ministry asserted that the Israeli occupation authorities are planning further major deductions from the illegally withheld Palestinian tax revenues to compensate families of Israeli casualties, falsely holding Palestinian institutions responsible. The exact amount being confiscated under this scheme remains unknown.
Severe financial consequences on salaries and Government commitments
The Ministry of Finance warns that these delays and deductions directly impact the Palestinian Government’s ability to pay public sector salaries and meet other financial obligations, worsening the economic crisis, increasing financial pressures on the Government, and intensifying hardship for Palestinian citizens.
Israeli deductions of Palestinian funds: A blatant act of political blackmail
Israeli occupation authorities continue to deduct and withhold substantial sums from Palestinian clearance revenues each month, including:
▪︎ NIS 275 million – This amount is equivalent to what the Palestinian Government allocates to the Palestinian people in the Gaza Strip.
▪︎ NIS 52.6 million – Deducted under the pretext that it is the amount allocated to the families of Palestinian martyrs and prisoners.
Total Israeli deductions since 2012: NIS 20.6 billion
The total amount of illegal deductions from Palestinian clearance revenues by the Israeli occupation authorities since 2012 has reached NIS 20.6 billion, broken down as follows:
▪︎ NIS 12.5 billion – Payments for electricity.
▪︎ NIS 4 billion – Payments for water.
▪︎ NIS 1.3 billion – Payments for sanitation services.
▪︎ NIS 3 billion – Payments for medical services.
In light of these concerning and alarming figures, the Ministry of Finance stresses that these actions by the Israeli occupation are flagrant violations of all signed agreements. Such violations also directly impact the Palestinian economy and the livelihood of the Palestinian people, as part of a wider and all-out war against them, their very existence, and their national institutions.
The Palestinian Government, in close collaboration with international partners and actors, continues to press for the immediate release of illegally withheld clearance revenues and an end to Israel’s unlawful policies.
The Ministry stated that it has adopted a policy of rationalization in preparing the 2025 budget, which came as a continuation of the Government of Palestine’s reform efforts. Over the past year, more than 50 reform measures have been carried out as part of the Palestinian Government’s financial and administrative reform agenda since day one in office.
Despite Israel’s intensified war and financial warfare, the Palestinian Government remains committed to safeguarding national institutions and strengthening the steadfastness of the Palestinian people.
