Palestinian Authority to Pay Reduced Salaries as Israel Blocks Funds

 Palestinian Prime Minister Mohammad Shtayyeh chairs a cabinet meeting in Ramallah city in the occupied West Bank on January 29, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas in Gaza. (AFP)
Palestinian Prime Minister Mohammad Shtayyeh chairs a cabinet meeting in Ramallah city in the occupied West Bank on January 29, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas in Gaza. (AFP)
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Palestinian Authority to Pay Reduced Salaries as Israel Blocks Funds

 Palestinian Prime Minister Mohammad Shtayyeh chairs a cabinet meeting in Ramallah city in the occupied West Bank on January 29, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas in Gaza. (AFP)
Palestinian Prime Minister Mohammad Shtayyeh chairs a cabinet meeting in Ramallah city in the occupied West Bank on January 29, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas in Gaza. (AFP)

The Palestinian Authority said on Tuesday it will pay public sector workers 60% of their December salaries this week as it grapples with the long running fallout of Israel's refusal to transfer tax funds earmarked for Gaza.

Funding to the Palestinian Authority, the body which exercises limited governance in the occupied West Bank, has been severely restricted by the months-long dispute over transferring tax revenues Israel collects on behalf of the Palestinians.

Funding from international donors has also been squeezed, falling from 30% of the $6 billion annual budget to around 1%, Palestinian Prime Minister Mohammad Shtayyeh said.

"The funding situation of the Authority is very difficult," he said, following a meeting of the cabinet.

The funding dispute has been a source of friction between Israel and the Palestinians since the start of the war in Gaza in October, when Israeli Finance Minister Bezalel Smotrich refused to release all the funds, accusing the PA of supporting the Oct. 7 attack in Israel led by the Islamist movement Hamas.

Under interim peace accords signed in the early 1990s, Israel collects taxes on the Palestinians' behalf and typically transfers them to the PA monthly on the approval of the finance minister.

However, transfers have been stalled since October, when Smotrich withheld around 600 million shekels ($164.51 million) of the total 1 billion shekels due for transfer, prompting the Palestinian Authority, which says Gaza is an integral part of Palestinian territory, to refuse to accept any funds.

"We cannot accept conditions on our money. We will remain committed to the prisoners and martyrs and to our people in the Gaza Strip, not out of favor, but by virtue of our national, religious and moral responsibility," Shtayyeh said.

Although Gaza is controlled by Hamas, the Palestinian Authority continues to fund essential areas of the blockaded enclave's budget including paying the salaries of health workers.

The dispute comes ahead of a visit by US Secretary of State Antony Blinken, who has pressed Israel to resolve the budget dispute, which has left thousands of Palestinian public sector workers without pay for months.

The dispute over the Palestinian Authority budget coincides with a separate dispute over funding to UNWRA, the United Nations agency which pays for emergency relief for Palestinians.

Much of the UNWRA budget has been cut off since Israel accused 12 of the agency's 13,000 Gaza workers of involvement in the Oct. 7 attack. The claims came as Israel faced a genocide case at the International Court of Justice over its war on Gaza, and after years of it calling for the agency to be disbanded.



Netanyahu Denounces Tactical Pauses in Gaza Fighting to Get in Aid

Israeli Prime Minister Benjamin Netanyahu (C) attends the Knesset plenum vote on the ultra-Orthodox conscription to military service law, in the Knesset, Israeli parliament in Jerusalem, 10 June 2024. (EPA)
Israeli Prime Minister Benjamin Netanyahu (C) attends the Knesset plenum vote on the ultra-Orthodox conscription to military service law, in the Knesset, Israeli parliament in Jerusalem, 10 June 2024. (EPA)
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Netanyahu Denounces Tactical Pauses in Gaza Fighting to Get in Aid

Israeli Prime Minister Benjamin Netanyahu (C) attends the Knesset plenum vote on the ultra-Orthodox conscription to military service law, in the Knesset, Israeli parliament in Jerusalem, 10 June 2024. (EPA)
Israeli Prime Minister Benjamin Netanyahu (C) attends the Knesset plenum vote on the ultra-Orthodox conscription to military service law, in the Knesset, Israeli parliament in Jerusalem, 10 June 2024. (EPA)

Israeli Prime Minister Benjamin Netanyahu criticized plans announced by the military on Sunday to hold daily tactical pauses in fighting along one of the main roads into Gaza to facilitate aid delivery into the Palestinian enclave.

The military had announced the daily pauses from 0500 GMT until 1600 GMT in the area from the Kerem Shalom Crossing to the Salah al-Din Road and then northwards.

"When the prime minister heard the reports of an 11-hour humanitarian pause in the morning, he turned to his military secretary and made it clear that this was unacceptable to him," an Israeli official said.

The military clarified that normal operations would continue in Rafah, the main focus of its operation in southern Gaza, where eight soldiers were killed on Saturday.

The reaction from Netanyahu underlined political tensions over the issue of aid coming into Gaza, where international organizations have warned of a growing humanitarian crisis.

National Security Minister Itamar Ben-Gvir, who leads one of the nationalist religious parties in Netanyahu's ruling coalition, denounced the idea of a tactical pause, saying whoever decided it was a "fool" who should lose their job.

DIVISIONS BETWEEN COALITION, ARMY

The spat was the latest in a series of clashes between members of the coalition and the military over the conduct of the war, now in its ninth month.

It came a week after centrist former general Benny Gantz quit the government, accusing Netanyahu of having no effective strategy in Gaza.

The divisions were laid bare last week in a parliamentary vote on a law on conscripting ultra-Orthodox Jews into the military, with Defense Minister Yoav Gallant voting against it in defiance of party orders, saying it was insufficient for the needs of the military.

Religious parties in the coalition have strongly opposed conscription for the ultra-Orthodox, drawing widespread anger from many Israelis, which has deepened as the war has gone on.

Lieutenant-General Herzi Halevi, the head of the military, said on Sunday there was a "definite need" to recruit more soldiers from the fast-growing ultra-Orthodox community.

RESERVISTS UNDER STRAIN

Despite growing international pressure for a ceasefire, an agreement to halt the fighting still appears distant, more than eight months since the Oct. 7 attack by Hamas fighters on Israel triggered a ground assault on the enclave by Israeli forces.

Since the attack, which killed some 1,200 Israelis and foreigners in Israeli communities, Israel's military campaign has killed more than 37,000 Palestinians, according to Palestinian health ministry figures, and destroyed much of Gaza.

Although opinion polls suggest most Israelis support the government's aim of destroying Hamas, there have been widespread protests attacking the government for not doing more to bring home around 120 hostages who are still in Gaza after being taken hostage on Oct. 7.

Meanwhile, Palestinian health officials said seven Palestinians were killed in two air strikes on two houses in Al-Bureij refugee camp in central Gaza Strip.

As fighting in Gaza has continued, a lower level conflict across the Israel-Lebanon border is now threatening to spiral into a wider war as near-daily exchanges of fire between Israeli forces and the Iran-backed Hezbollah militia have escalated.

In a further sign that fighting in Gaza could drag on, Netanyahu's government said on Sunday it was extending until Aug. 15 the period it would fund hotels and guest houses for residents evacuated from southern Israeli border towns.