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Aid cuts keep PA stuck in economic rut

The Palestinian Authority has been plagued by a protracted financial crisis amid thinning foreign aid and not enough local revenues to end the deficit.
A Palestinian woman talks to Palestinian Prime Minister Rami Hamdallah (L) during his visit to Susya village south of the West Bank city of Hebron June 8, 2015. Residents of Susya village, living in tents erected on the top of sand hills for almost 30 years, feared that Israel would drive them out of the area. The village is located in an area classified in Israeli-Palestinian peace accords as Area C, where Palestinian residents must obtain a license to build or stay there. REUTERS/Mussa Qawasma - RTX1FMLZ
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GAZA CITY, Gaza Strip — Foreign aid and grants to the Palestinian government have dropped by 45% so far this year, according to Palestinian Prime Minister Rami Hamdallah, raising questions about the reasons for this significant drop, the extent to which the Palestinian Authority is affected (as it depends on these grants as a major source of funds) and how successful the measures taken by the PA to meet this challenge are.

Hamdallah revealed the figures in his speech Aug. 27 at the second Social Accountability Forum in Ramallah.

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