Why did Saudi Arabia halt its aid to Palestinian Authority?
The Palestinian government announced recently that Saudi Arabia has not been paying its monthly aid to the Palestinian Authority since April, which will negatively affect the economy.
The Palestinian government continues to talk about its fiscal deficit and questions its ability to meet Palestinians' economic needs. Most recently on Oct. 24, Palestinian Prime Minister Rami Hamdallah said that the Palestinian Authority (PA) is facing a severe financial crisis, calling on nations and donors to fulfill their obligations toward the Palestinians per the Oslo Accord signed between Palestinians and Israelis in 1993.
On Oct. 30, the director of the Budget Department at the Palestinian Ministry of Finance, Farid Ghannam, pointed to Saudi Arabia's failure to meet its financial obligations toward the PA since April, noting that the value of this seven-month failed contribution is estimated at $140 million. Ever since January 2013, Riyadh has raised the sum of its monthly financial support to the PA from $14 million to $20 million.
