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Journalism of Courage
Palestinian Finance Minister Salam Fayyad presented the 2003 Budget to Parliament on Tuesday and vowed to begin a new era of accountability and end mismanagement of public funds.
The Palestinian Authority’s Budget plan, its first since 2001, comes against the backdrop of 27 months of Israeli-Palestinian violence that has left the Palestinian economy in shambles. Total spending is expected to reach $1.278 billion, while the Budget deficit was estimated at $747 million in 2003, up from $526 million in 2001. Given the Palestinian uprising for statehood that began in September 2000, there was no Budget in 2002. The Palestinian Legislative Council was unable to convene last year, forcing the Palestinian Authority to base spending on the 2001 plan. ‘‘Revenue-making capacity is projected to decline to about $531 million, while external budgetary support is assumed to remain at around the same level as in 2002 at $500 million,’’ Fayyad told members of the Palestinian Legislative Council in the West Bank city of Ramallah.
The Budget deficit includes the $500 million external support which Fayyad said was expected to be given to the Palestinian Authority by donors, including Arab and EU states. The PLC is slated to vote on the budget in about a month, with expectations that the plan will be approved. Fayyad said the Budget proposal assumes a further decay in Palestinian economic performance, which he projected would contract by 7 percent in 2003. GDP for the Palestinians is currently estimated at around $2 billion. (Reuters)
