Photo Credit: Nasser Ishtayeh/Flash90
Palestinian Authority leader Mahmoud Abbas (left) and P.A. Prime Minister Mohammad Shtayyeh at the swearing-in ceremony of the new government at the P.A.'s headquarters in Ramallah, April 13, 2019.

The Palestinian Authority’s (PA) general budget shows that the US transferred financial aid to its coffers in October, for the first time since March 2017, the last time the US did so under the administration of former President Donald Trump. The $10 million in US aid was transferred to fund hospitals in eastern Jerusalem.

The US suspended its support for the PA in early 2017, and later suspended its support for the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA).

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Current budget data released by the PA’s Ministry of Finance show that the US has transferred a total of $10 million to the PA.

Sources in the PA told TPS that United States Agency for International Development (USAID) has also significantly expanded its activities in the PA’s areas and in eastern Jerusalem, and recently its representatives met with representatives of the Arab tourism industry and other sectors in Jerusalem.

USAID has suspended its work since 2018, but two months ago renewed its support for local projects.

Meanwhile, another source said that the PA is in a bad financial state and now needs $600 million in emergency aid to ensure the payment of salaries to its employees and payments to suppliers.

The PA is suffering from a sharp decline in external grants, both from Arab sources and from European Union countries.

In 2021, there was a sharp decline in foreign aid to the PA budget. The PA received $49 million in aid this year, compared to $321 million over the same period in 2020.

However, financial reports released by the PA show that its revenues during the first 10 months of 2021 were the highest in its history.

According to the PA’s financial report, its net income for the first 10 months of 2021 totaled NIS 11,391,800,000, reflecting a rise of NIS 1.798 billion in comparison to 2019, and over NIS 3 billion in comparison to 2020. Over the past decade, the PA’s net income has doubled.

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Baruch reports on Arab affairs for TPS.