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Palestinian Authority Published Accounts

May 10, 2006

One of the achievements of donor countries has been to force a certain level of transparency in the financial accounts of the Palestinian Authority (PA). From January 2003 to December 2005, a monthly summary of the PA’s accounts was published by its Finance Ministry’s internet portal at www.mof.gov.ps.

A summary of these accounts is now provided by the Funding for Peace Coalition, as a resource for interested parties. All amounts are shown in thousands of US dollars.

General Notes

1.      In the PA, a wide network of quasi-governmental and non-governmental organisations, including UNRWA, perform services normally undertaken by governments. Many of these organisations are also funded by international donors. This means that the true level of international aid and public expenditure within the Palestinian Authority is not reflected in the published accounts. For example, USAID has provided over US$1.5 billion to such groups since 1993.

2.      Many of these NGOs have been accused of following a highly politicised agenda, of facilitating violence and terrorist activity, or of exacerbating and extending the conflict between the parties. There is no evidence that some of these bodies are less tainted by charges of corruption than the PA.

3.      The accounts of the PLO and the Palestine Investment Fund (which consolidates and manages PA financial and non-financial assets) are not available. Nor are the levels of reserves held by the PA itself. In the three-year period under review: $171 million was transferred to reserves; the Palestine Investment Fund transferred $173 million to the PA; PLO institutions received $55 million from the PA. Media reports would indicate that these three elements constitute vast undisclosed resources available to the PA.

4.      Many public reports, including from the PA Attorney General, indicate that the transparency of posting accounts on the internet did not prevent large sums being diverted to corruption, violence and terror.

5.      From time to time, significant retroactive adjustments have been made to the accounts as previously published on the internet. No attempt has been made to reconcile internal inconsistencies in the accounts as published.

6.      The PA accounts have not been updated since the election of the Hamas government in January 2006. The summary below shows the accounts as posted on 10 March, 2006.

Expenses and Foreign Aid

From May 2004, certain countries channeled their donations via the World Bank. The "adjusted" column reallocates these amounts against the donor countries, so that a total for each country can be easily located.

PA Ministry of Finance - Summary of Expenses and Foreign Aid $US 000's

 

 

 Jan 2003 - Dec 2005

 

 

 

 Total PA Expenditures

 

 4,001,645

 of which: Total Salaries & Wages

 

 2,551,842

 of which: Military Salaries

 

 987,130

 

Direct Aid

 

 

Adjusted**

 World Bank Emergency Services Support Project

135,655

135,655

 World Bank - Other Grants

20,000

20,000

 World Bank - Loans

7,253

7,253

 World Bank Trust - EU

122,924

 

 World Bank Trust - Britain

21,300

 

 World Bank Trust - Japan

40,000

 

 World Bank Trust - France

3,300

 

 World Bank Trust - Norway

32,827

 

 World Bank Trust - Australia

2,450

 

 World Bank Trust - Korea

600

 

 World Bank Total

386,308

162,908

 

 

 

 EU

112,794

235,718

 Saudi Arabia

184,882

191,789

 Saudi Arabia - Public committee

6,907

 

 Norway

10,030

42,857

 United Arab Emirates

21,450

21,450

 Unites States of America

20,000

20,000

 Lybia

15,113

15,113

 Algeria

113,438

113,438

 Kuwait

47,500

47,500

 Canada

7,000

7,000

 Britain

-

21,300

 France

-

3,300

 Palestinians Abroad

5,418

5,418

 Qatar

15,399

15,399

 Bahrain

3,300

3,300

 Tunisia

1,650

1,650

 Japan

1,260

41,260

 Egypt

4,318

4,318

 Oman

1,000

1,000

 South Africa

500

500

 Sudan

858

858

 Greece

628

628

 Turkey

30

30

 Australia

 

2,450

 Korea

 

600

 

 

 

 Total Direct Foreign Aid

959,784

959,784

 

 

 

 AID / TOTAL EXPENSE

 

 

 

Palestinian Authority Domestic Revenues $US 000's

 

 

Jan 2003 to

Dec 2005

 

 

Domestic tax revenues

 

 Income tax *

165,468

 Value-added tax **

252,928

 Customs and duties

12,218

 Property tax

4,635

 Tobacco tax

137,307

 

572,556

 Domestic non-tax revenues

 

 Stamp fees

14,319

 Interior fees

36,927

 Health fees

23,775

 Health insurance fees

55,172

 Transportation fees

54,326

 Justice fees

46

 Ministry of Agriculture fees

3,254

 Labor fees

391

 Local Government fees

1,311

 Social Welfare fees

124

 Supply fees

4,477

 Sharia / Religious courts

4,136

 Land Authority fees

12,476

 Tourism fees

584

 Post and Telecommunications fees

17,975

 Education fees

2,739

 National Security revenues

696

 Higher Education revenues

357

 Police revenues

4,805

 Supreme Judicial Council

8,990

 Ministry of National Economy

5,853

 Earnings transferred from public corporations

226,040

 Other fees

32,700

 

511,474

 Revenues Clearance ***

 

 Customs duties

721,385

 Value-added tax

697,787

 Fuel tax

393,310

 Health insurance

7,690

 Income tax

7,770

 Crossing Points fees

29,886

 

1,857,829

 

 

 Total gross revenues

2,941,858

 

 

 Tax refunds

(110,964

 

 

 Net revenues

2,830,894

* Personal income rates in the PA range from 5% to 20%. Wages on salaries are deducted at source. The corporate income tax rate is 20%.

** VAT is imposed on all local goods and services at a rate of 17%. Certain projects supported by the PA are exempt from VAT.

*** Clearance revenues are collected by the State of Israel and transferred to Palestinian Authority by force of agreements between the parties. During the period, Israel transferred an additional $476 million, which had been withheld from prior periods.

Detailed Expenses ($US 000's)

Detailed expenses for the period are shown against the ministries charged for the expense. As responsibilities shifted during the period, there are movements between lines. Where possible, the expenditures are shown in the ministry, which had the relevant responsibility at the end of the period.

 

 

Responsible Entity

 

Jan 2003

to Dec 2005

1. Central Administration

 

 

 

President's office

 

134,004

 

P.L.O Institutions

#

54,994

 

Palestinian Elections Committee

#

875

 

Legislative Council

 

21,893

 

Council of Ministers

 

4,309

 

Secretariat of the Council of Ministers

*

2,009

 

General Control Institute

 

3,733

 

General Personnel Office

 

61,907

 

Palestine Central Bureau of Statistics

 

7,506

 

The commission of National Organizations Affairs

 

2,137

 

Higher Commission for Finance and Investment

*

25

Total

 293,393

2. Public Security and Order

 

 

 

Ministry of Interior and National Security

 

1,182,392

 

Ministry of Justice

 

16,072

 

Supreme Judicial Council

 

21,494

 

Land Authority

 

7,628

 

Ministry of Local Government

 

19,484

 

Ministry of Civil Affairs

 

13,710

 

Office of the Supreme Justice

 

9,643

 

Islamic Jurisprudence and Research Center

 

30,706

Total

 1,301,126

3. Fiscal Affairs

 

 

 

Ministry of Finance

 

58,408

 

Ministry of Endowments

 

63,041

 

Nongovernmental Organizations

 

20,667

 

Water Authority

 

1,667

 

Pension Allowances

 

101,657

 

General Expenditures

 

11,970

 

Public Debt Service

 

81,155

 

Financial Reserves

 

170,594

 

Development Expenditures

 

86,217

 

PECDAR

*

802

Total

 596,177

4. Foreign Affairs

 

 

 

Ministry of Negotiations Affairs

 

1,317

 

Embassies

 

47,257

 

Political Department

*

 

 

Ministry of Foreign Affairs

#

10,201

Total

 58,438

 

 

 

 

5. Economic Development

 

 

 

Ministry of National Economy

 

24,905

 

Industrial Zone Board

 

1,402

 

Specifications and Standards Office

 

2,389

 

Investment Promotion Agency

 

1,736

 

Energy and Natural Resources Agency

 

4,061

 

Ministry of Planning

 

6,982

 

Ministry of Public Works and Housing

 

28,649

 

Ministry of Agriculture

 

40,428

 

Ministry of Supplies

*

2,976

 

Environmental Quality Authority

 

4,631

 

Public Tobacco Board

*

831

Total

 118,990

6. Social Services

 

 

 

Ministry of Education and higher education

 

757,907

 

Ministry of Health

 

393,217

 

Ministry of Women Affairs

 

45,920

 

Ministry of Prisoners Affairs

 

104,891

 

Ministry of Labor and Social Affairs

 

211,872

Total

 1,509,840

7. Cultural and Information Services

 

 

 

Supreme Information Council

 

41,087

 

Ministry of Tourism & Antiquities

 

9,382

 

Ministry of Youth and Sports

 

17,549

 

National Guidance Commission

*

7,892

 

Ministry of Culture

#

5,742

Total

 81,652

8. Transportation and Communications Services

 

 

 

Ministry of Transportation

 

23,537

 

Ministry of Telecommunications &Technology

 

14,196

Total

 37,732

 

 

 

 

Total budget expenditures

 

 4,001,655

 

 

 

 

 

Net Lending1

 

591,880

 

 

 

 

Grand Total

 

 4,593,534

 

*

Ministries or functions merged into other line items during the period

#

Ministries or functions created or moved from other line items during the period

1

Net lending includes:-

(i) Payments by the PA of utility bills due to Israeli providers from local governments, which are deducted by the Government of Israel from clearance revenues;

(ii) Payments of fuel oil for the Gaza Electricity Generating Company, to ensure continued production and distribution of electricity in Gaza;

(iii) Exceptional advances to local governments.

 


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