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[Reuters] Adam Entous and Mohammed Assadi - An impending drop in revenues means PA Prime Minister Salam Fayyad's government could face shortfalls of $90 million a month starting in January, Western officials said. Officials said the cash crunch will begin within two months when Israel finishes handing over tax revenues totaling $224 million that it had withheld for 17 months while Hamas controlled the PA. While the U.S. asked Congress last week to approve $350 million in aid, including $150 million in direct support, none of the money can go to salaries. Donors say they are reluctant to give money before Fayyad takes steps to rein in spending by cutting the PA payroll. The PA's wage bill averaged about $110 million per month as of June, exceeding total revenues. That compares to a wage bill of less than $80 million a month in 2005, according to IMF estimates. 2007-10-30 01:00:00Full Article
Despite Promises of Support, PA Facing Budget Woes
[Reuters] Adam Entous and Mohammed Assadi - An impending drop in revenues means PA Prime Minister Salam Fayyad's government could face shortfalls of $90 million a month starting in January, Western officials said. Officials said the cash crunch will begin within two months when Israel finishes handing over tax revenues totaling $224 million that it had withheld for 17 months while Hamas controlled the PA. While the U.S. asked Congress last week to approve $350 million in aid, including $150 million in direct support, none of the money can go to salaries. Donors say they are reluctant to give money before Fayyad takes steps to rein in spending by cutting the PA payroll. The PA's wage bill averaged about $110 million per month as of June, exceeding total revenues. That compares to a wage bill of less than $80 million a month in 2005, according to IMF estimates. 2007-10-30 01:00:00Full Article
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