Secretary-General of the Palestinian government Amjad Ghanem revealed the draft state budget has a deficit of $1.2 billion, which is a result of forecasts of revenues and spending in 2021.
He noted that it will not be an emergency budget, unlike last year’s which was necessary due to the coronavirus pandemic. He added, however, that challenges caused by the outbreak have impacted the new budget.
After it is passed, it will be evaluated on a monthly basis and the parliament will also revise it.
The cabinet had discussed the draft budget on Monday and will resume them during its next session.
Palestinian Authority Minister of Finance Shukri Bishara said that the new budget must reflect the approach of the government and the aspirations of policymakers.
He stated that it will be flexible and applicable on a monthly basis, and it can be partially or fully amended following the legislative elections in May.
The government announced that the economy contracted 11.5 percent in 2020, while financial donations dropped 33 percent compared to 2019.
Revenues also decreased by 20 percent due to the challenges ensuing from the pandemic.
The deficit totaled 9.5 percent of the GDP during 2020 and the local public debt reached 15 percent compared to 13 percent in 2019.
The Palestinian economy continues to be gripped by the pandemic. The government estimated that total losses exceeded $3.8 billion in one year.
