Usually, the preparation and ratification of the Palestinian Authority’s (PA) budget is accompanied by a great deal of domestic and international anticipation due to the ongoing financial crisis plaguing the authority. This crisis has negatively affected the PA's popularity within Palestinian society, just as it reflects the balance of power within the Palestinian community between large companies, unions and civil society organizations. It acts as a litmus test for the PA's relationship with Israel. This time, however, the ratification came under different circumstances.

Old and new conditions

The approval of the 2013 budget came under new and old political and financial conditions. The PA has been reeling under the pressure of a persistent financial crisis for years, a crisis that has intensified in the past year, prompting violent demonstrations in the West Bank. These demonstrations have called for lowering taxes and combating the high cost of living, while some have even been calling for the dismissal of the government of Salam Fayyad.

Moreover, the ratification of the budget comes amid sharp differences between President Mahmoud Abbas and Prime Minister Fayyad following the resignation of the finance minister, Dr. Nabil Kassis, on March 9. The resignation was quickly accepted by Fayyad without consulting Abbas, who was at the time in the Kingdom of Saudi Arabia. For his part, President Abbas asked Kassis to return to his post, which further strained the relationship between the two heads of the PA.