The Palestinian Authority is heavily dependent on foreign assistance. With Western aid suddenly in question following Hamas' victory in legislative elections, the Palestinians could face a serious financial crisis. Here is a look at the Palestinian finances:
2005 BUDGET
- Total: $1.96 billion.
FOREIGN AID
- Total: $1.1 billion, about one-third for government salaries and other operating expenses; remainder for infrastructure and reconstruction projects.
MAJOR DONORS
- European Union: $295 million, most for development aid.
- Individual European Union countries: $300 million, with the two largest being Germany at $56 million and Britain $50 million.
- United States: $234 million, almost all for development projects.
- Arab nations: $204 million.
- Norway: $60 million.
- Japan $30 million.
TAX REVENUES:
- 2005: $396 million.
ADDITIONAL INCOME:
- Customs duties and value added tax collected for Palestinians by Israel each month: $50 million.
- An additional combination of foreign aid and bank loans make up the shortfall of about $400 million, according to Cabinet Secretary Sair Hlaileh.
Sources: World Bank, Palestinian Finance Ministry, European Union, State Department, Norwegian government. All donor figures refer to 2005 except Great Britain, which refers to fiscal 2005, which runs from April 1, 2004 to March 31, 2005.