Scope of Government Spending in Palestine in 2018

·    Total public debt and actual unemployment. On the rise
B

·       Net accumulation of arrears due (the private sector)..and the debts of the public funds are increasing

·       Palestinian actual government spending in 2018 amounted to 13,134 million shekels..(thirteen billion one hundred thirty-four million shekels)..
We wrote in three previous parts about the details of the financial data related to net public revenues for 2018 which amounted to 12,256 million shekels (twelve billion two hundred fifty-six million shekels)..and the actual expenditures as we listed above....

·       It is noteworthy that although the actual expenditure figures were lower than the 2018 budget figures in almost all items, starting with salaries and wages, the amounts of public debt increased compared to the previous year 2017. For example, total public debt in 2017 was 8,849 million shekels (eight billion eight hundred forty-nine million shekels), of which domestic debt was 5,224 million shekels; of that, bank debt was 2,834 million shekels, bank facilities amounted to 1,478 million shekels, and external debt was 3,625 million shekels. The announced public debt in 2018 became 8,916 million shekels (eight billion nine hundred sixteen million shekels), i.e., total public debt increased in 2018, despite the reduction in the government deficit and the extinguishing of part of some arrears, and although domestic debt declined slightly in bank loans — most of which are long-term!! — bank facilities as debt increased in 2018 compared to 2107, and external debt also increased in 2018 to become 3,882 million shekels...!! Where the due debts to Arab financial institutions and international institutions and bilateral international loans also increased...!! In addition to all that, in addition to the public debt, there are debts and dues not included in public debt levels, including: amounts due from arrears, most of which are to the private sector, which increased in 2018 compared with 2017 - explained in a previous post - where these dues at the end of 2017 were about 2 billion shekels, and the net cumulative arrears at the end of 2018 became 2,836 million shekels....!!, ...and the amounts due to the public funds, such as the Pension and Salaries Fund, the Orphanage Fund and the Alimony Fund ..and others have increased ...including the debt of the Petroleum Authority in 2018 which was part of its debt -the Authority- from the Orphanage Fund and the Alimony Fund -51 million shekels-...!! to reach 895 million shekels...!!, and they were not paid but increased compared to their previous amounts in 2017 .!! Also, the interest on one of the external debts..the World Bank..was postponed to another date..and with all that ..internal and external indebtedness and the local public funds increased. All this gives an indicator that raises concern and gives a red light...for the course of the government...and what the economic matters will lead to, in light of threats to cut external aid and tightening on clearance revenues, and the specter of rising unemployment whose rate rose to more than 30% -more than 400 thousand people-, and the failure to present the tax reform project promised by the government in the draft Budget Law for 2108, and the inequality occurring in Palestinian society which increases annually, and has not been reduced...!! And the detestable division that crippled the economic side and its sectors in Palestine, in addition also to the political and moral harm to the Palestinian cause in all dimensions, and add to that, that the nature of the projects that were implemented or are being completed in development, transfer and capital expenditures are mostly operational, environmental, and security in nature..and not capital or investment-oriented in a purposeful way..to create jobs....and therefore, we hope to see the government's plans in its 2019 budget take into account — and they certainly will take into account — these observations to the extent that its capabilities allow...and in light of the squeezing of the Palestinian people from most directions and the attempt to erase its just cause.. and we wish it success...!!

·       Date: 15-2-2019