RAMALLAH, Feb. 12 (Xinhua) -- Palestinian Finance and Planning Minister Estephan Anton Salameh warned on Thursday that the Palestinian Authority's (PA) financial situation has become "extremely critical," threatening the continued provision of basic services, as Israel has withheld Palestinian tax revenues for the 10th consecutive month.
"2026 will be the most financially difficult year in the history of the Palestinian Authority," Salameh said at a press conference held in Ramallah in the West Bank.
He said that for 10 consecutive months, Israel has continued to withhold tax revenues belonging to the PA, noting that it is currently withholding approximately 4.4 billion U.S. dollars in Palestinian funds.
"There is no alternative to the clearance revenues, which constitute about 70 percent of Palestinian public revenues and are being stolen by Israel," Salameh said.
He said that government institutions are operating "at a tenth of the minimum level," including vital sectors such as health, education, and security.
"We need one billion shekels monthly to operate even at this low level, and austerity is no longer an option, but a necessity," he noted.
Salameh noted that the PA's public debt reached approximately 15.426 billion U.S. dollars by the end of 2025.
"This debt is not the result of mismanagement of public funds, but rather of the theft of our money by Israel," he added, accusing the Israeli government of "playing with fire and crossing all red lines."
Since November 2021, the PA has been paying partial salaries, ranging from 50 to 90 percent, to public sector employees due to recurring financial crises.
Under existing arrangements, Israel collects customs duties and value-added taxes on goods imported into Palestinian territories and transfers the funds to the PA on a monthly basis.
Security tensions in the West Bank have intensified since the outbreak of the Israel-Hamas conflict in October 2023, further deepening the PA's financial crisis and limiting its ability to pay salaries and deliver essential public services. ■
