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January 16, 2013       Share:    

Source: http://www.reuters.com/article/2013/01/15/us-palestinians-economy-idUSBRE90E0O120130115

Palestinians Demand Salaries as PA Cash Crisis Bites

(Reuters) Noah Browning - Hundreds of Palestinian government workers protested outside the PA prime minister's office in Ramallah in the West Bank on Tuesday, saying they had not received a full salary in almost three months amid a deepening financial crisis. From a high of $1.8 billion in 2008, foreign aid plummeted to $600 million last year, according to the Palestinian Monetary Authority. Yet hiring has continued to rise in the PA's swollen public sector, and efforts to improve tax and utility bill collections have only increased public anger. Palestinian officials said Arab countries had failed to deliver a $100 million monthly "safety net" promised before their UN statehood move in November. Around $200 million in U.S. budget assistance pledged by Washington in 2012 has been held up by Congress.

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