RAMALLAH, September 8, 2011 (WAFA) – Palestinian Minister of Labor, Ahmad Majdalani, Thursday said that the Palestinian Authority expects to be able to pay its public employees their full August salary after Kuwait’s decision to support the PA’s budget with $50 million. 

The money was paid to the World Bank, which will transfer it to the Palestinian Authority.

Majdalani said the PA is still working on reform, regulatory and austerity measures to ensure more rationalized spending within Palestinian governmental institutions.

He indicated that the PA has completed the political and philosophical frame of its austerity plan, which mainly consists of increasing self-dependency, reducing reliance on international aid and raising local income without enforcing new taxes.

Majdalani believes that regulating tax evasion, which amounts to a $700 million deficit due to Israel’s lack of cooperation, will help the PA overcome its financial crisis.

The current financial deficit in the PA’s budget amounts to $960 million due to donors’ failure to pay their financial obligations, especially Arab countries.

Majdalani said that Prime Minister Salam Fayyad will present a plan to the Palestinian cabinet during its upcoming meeting, in which financial measures will be taken without affecting employees’ salaries, education and health services.

M.H./F.J.