Palestinian Prime Minister Ismail Haniya has appealed for a concerted regional effort to ensure that funds get through to the Palestinian people.
In an interview with the BBC Arabic Service, he said the Arab League had been given the names of 160,000 unpaid government employees.
He said the league had been unable to use donated monies to pay their wages because of the Israeli occupation.
Mr Haniya said efforts were being made to find a way to pay the salaries.
Mr Haniya said it was not just the government that had the duty of getting the salaries paid: the Palestinian president, financial institutions and Arab countries also shared the responsibility.
‘There must be a unified relationship between all these parties to ensure the funds reach the Palestinian people,’ Mr Haniya said.
Mr Haniya confirmed that most Arab states had offered financial aid in line with the recommendations of the Arab summit in Khartoum last March.
Fuel supplies resumed
Earlier on Friday, fuel supplies begun arriving at petrol stations in the West Bank, defusing a mounting crisis over petrol shortages.
Israeli company Dor Energy, which is the sole supplier of petrol and cooking gas to the Palestinian territories, agreed on Thursday to resume deliveries.
Supplies had been cut off because of unpaid Palestinian Authority bills totalling about $26m (£14m), and petrol stations across the West Bank had been closing as they ran out of fuel.
The Palestinian Authority has been in deep financial crisis since Hamas took it over, following its election victory in January.
Western donors have cut off direct financial aid, and Israel has been withholding $55m a month in tax and customs revenues that it collects on the Palestinians' behalf.
Protest clash
Reports from the West Bank say Israeli forces have fired tear gas and rubber bullets to break up a demonstration against the barrier Israel is building there.
A number of people are said to have been injured, including two foreign pro-Palestinian activists and a photographer for an international news agency.
The protest took place near the village of Bilin, where Palestinian, Israeli and international activists hold a regular weekly demonstration against the barrier.
Israel says the West Bank barrier is designed to stop suicide bombers from entering, but Palestinians see it as an attempt to grab West bank territory.
The International Court of Justice issued an advisory ruling in 2004 that the barrier breached international law where it is built on occupied territory and should be dismantled.
PA FINANCIAL CRISIS
$166m: PA's monthly wage bill
PA employs 165,000 people
25% of people in West Bank and Gaza depend on PA wages