Palestinian FM urges Arab states to keep financial promises to PA

RAMALLAH, March 14 (Xinhua) -- PAlestinian Foreign Minister Riad Malki on Thursday urged the Arab states to keep their financial promises to the PAlestinian Authority (PA) to enable its work.

Malki told the official PAlestinian radio, Voice of PAlestine, that the PA's financial situation has become a collective Arab responsibility, due to the Israeli decision to deduct millions of U.S. dollars of PAlestinian tax revenues.

He said that the Arab League (AL) has decided to activate the Arab financial safety network of 100 million dollars monthly to support the PAlestinian people, but it has not implemented the decision.

The PA faces a risk of increasing budget deficit of 700 million dollars, amid limited resources and revenues, which poses a major challenge to its ability to meet its obligations. Subsequently, the new government is expected to face a tight financial situation.

The PA declared adoption of an emergency budget as it is unable to PAy full salaries to its employees.

Israel deducted 41.8 million Israeli shekels (11.6 million dollars) out of tax revenues it collects on behalf of the PA, based on a newly PAssed Israeli law to allow its authorities to deduct the amount PAid to families of PAlestinians who carried out "terrorist acts" against Israel.