RAMALLAH, Sunday, April 12, 2020 (WAFA) – Minister of Finance Shukri Bishara said today that a significant decline has been witnessed in the government revenue due to the repercussions of the coronavirus outbreak in Palestine and the entire world. He said the decline in the government revenues is expected to reach about 60 to 70 percent.

Speaking to reporters via the internet, Bishara affirmed that the government will nevertheless spare no effort to fully pay the monthly salaries of the civil servants, which he described as the main driver of economic growth in Palestine.

The Finance Minister said talks are underway with Israel to negotiate the possibility of asking the Israeli government to transfer an amount equal to the 500 million shekels ($140 million), which in normal times Israel transfers to the Palestinian government on a monthly basis on taxes and tariffs collected on behalf of the Palestinians.

Bishara said if Israel agrees on the Palestinian proposal then that should apply for the following six months, the period scheduled for the application of the Emergency Budget Law approved by President Mahmoud Abbas on March 31.

Responding to a question on what would happen in the event of a failure of the talks with the Israeli government, Bishara said there are good indicators that Israel will agree on that. Otherwise, he said, the government will have to manage its expenditure with the tight revenues in its hands.

He affirmed that any revenues received by the government during the ongoing crisis will be spent out according to fair priorities determined on a monthly basis by the Council of Ministers.

In the meantime, the Finance Minister envisioned three priorities for spending under the Budget Law, namely the health sector, the protection network for needy families and the poor, and finally providing liquidity for suppliers of goods and services from the private sector.

"No one can predict where things are going, what we see is a vertical decline in all levels of the economy in the world."

M.N