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Despite austerity measures due to decreased foreign aid, PA payments in salaries projected to increase by 3.1%

     “The [PA] government continued to discuss the general budget proposal of the State of Palestine for the 2017 financial year. According to the forecasts, the gross income will stand at 13.72 billion [Israeli] shekels (25.6% of the GDP) [parentheses in source], that is to say an increase of 6% compared to 2016, when [the gross income] stood at 12.95 billion shekels. This is while the net income will stand at 13.37 billion shekels (25% of the GDP) [parentheses in source], that is to say an increase of 6% compared to 2016, when [the net income] stood at 12.6 billion shekels.

Regarding the gross domestic income, it is expected to reach 4.94 billion shekels, that is to say an increase of 23% compared to 2016, when it stood at 4 billion shekels.
The clearing income (that Israel collects for the PA –Ed.) is expected to reach 8.77 billion shekels, a decrease of 2% compared to 2016, when it stood at 8.9 billion shekels…
The net total of expenses and loans is expected to reach 16.1 billion shekels in 2017, an increase of just 1% compared to 2016. The cost of salaries and wages is expected to reach 8.1 billion shekels (15.1% of the GDP) [parentheses in source], an increase of 3.1% compared to 2015 (sic., should be 2016)…

According to these figures, the joint deficit is expected to reach 2.76 billion shekels, a decrease of 18% compared to 2016. Together with the expected development projects, whose cost is 1.36 billion shekels, the total deficit is expected to reach 4.12 billion shekels, a decrease of 9% compared to 2016.

Regarding the foreign funding supporting the budget, it is not expected to exceed $500 million, and $92 million for funding development projects through the treasury’s coffers.
Regarding paying the debt balances, $300 million will be allocated for payment of the debt balances to the private sector. Therefore, as a result of the great decrease in the foreign funding for the budget, the funding gap will stand at $765 million, which will obligate the government to take austerity measures in all fields.”