Did PA receive Saudi reward for its support?
Saudi Arabia has resumed aid to the Palestinian Authority in a surprising move that raises questions about the kingdom’s motives behind the decision.
An ever-worsening financial crisis has been plaguing the Palestinian Authority (PA) since the beginning of 2018. Foreign support for its budget has been declining and it is expected to keep on doing so given the current political conditions. As a result, the PA will no longer be able to perform its duties and meet its economic, financial and social commitments. Its financial deficit for 2018 has already reached 2.6 billion Israeli shekels ($697 million).
In August, Washington cut $200 million in aid to projects in the Palestinian territories and to PA salaries, after the United States declared Jerusalem as the capital of Israel in December 2017 and transferred its embassy there in May. As a result, the PA had to take severe austerity measures that affected the salaries of its employees and reduced the budgets of many sectors of the government after foreign aid dropped by 70%.
