Palestinian Prime Minister Mohammad Shtayyeh said his government is working on a strategy for tax revenues and rationalization of expenditures, in an attempt to reduce the estimated $1 billion deficit in the 2021 budget.
Speaking at the opening of the weekly cabinet session on Monday, Shtayyeh said ministers will continue discussing the general budget for the fiscal year 2021 before referring it to President Mahmoud Abbas for approval.
The government will work to bridge this gap through administrative and financial structural reforms, the premier added.
It will apply the 2021-2025 tax revenue strategic plan, which mainly focuses on addressing tax evasion, tax avoidance, horizontally expanding the tax base and reducing tax burden on citizens, he explained.
Shtayyeh affirmed that work is underway to rationalize public expenditure in net lending, medical transfers and other costs, and vigorously follow-up efforts to resolve pending financial issues with Israel, based on the Paris Protocol.
His remarks were made as the government continues to work on approving the first regular budget in two years, due to the financial disputes with Israel and the coronavirus outbreak.
Shtayyeh said Palestine’s development plan aims to end the occupation, carry out reforms and improve the quality of public services.
The general budget will be “flexible and feasible” and in accordance with the available monthly cash flows and the government’s priorities, said the Finance Ministry.
It will also be subject to complete or partial amendment, following the legislative elections scheduled for May 22, it added.
Shtayyeh pledged to allocate up to 62 percent of the total public spending on the health, education, social protection and security sectors.
Also, 17 percent of the total budget have been allocated to education, including schools’ infrastructure.
“Schools in the city of Jerusalem, the areas classified (C) and the Jordan Valley will be supported, in addition to providing technological empowerment and developing the educational level.”
