RAMALLAH, Monday, March 29, 2021 (WAFA) - The Palestinian Government approved during the weekly cabinet meeting held today via the video conference the general budget for the year 2021, stating that a budget deficit is projected to reach a record of one billion dollars.
Speaking at the opening of the weekly cabinet meeting, Shtayyeh stressed that the government will work to bridge this gap through administrative and financial structural reforms.
The cabinet said that revenues for the general budget are expected to reach $3.8 billion; an increase of 12.5% compared to the previous year, while the total expenditures amounted to $5.6 billion for the year 2021; an increase of 9.9% compared to the total expenditures in 2020, which amounted to $5.1 billion.
It said that the development expenditure is estimated at $683 million for the year 2021; an increase of 146% compared to the spending on development projects in the year 2020, which amounted to $278 million.
The cabinet said that the total budget support and grants for development projects is expected to reach approximately $657 million, adding that the expected deficit is about $1,052 million; 6.4% of Gross Domestic Product (GDP) compared to 7.5% during the previous year.