Palestinian Authority to pay reduced salaries as Israel blocks funds
RAMALLAH, Feb 6 (Reuters) - The Palestinian Authority said on Tuesday it will pay public sector workers 60% of their December salaries this week as it grapples with the longrunning 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.
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