Fayyad: Govt raises tax, cutting costs to plug deficit ATFP World Press Roundup Article from Ma'an News Agency January 9, 2012 - 1:00am RAMALLAH (Ma'an) -- Palestinian Authority Prime Minister Salam Fayyad is cutting spending and raising taxes in an attempt to plug the $1.1 billion deficit in the public budget, he told reporters in Ramallah on Sunday evening. Fayyad's government aims to knock $350 million off the budget deficit through new measures to cut costs and increase revenues, including an income tax increase now in effect, the premier said. The global financial crisis and a failure of donor countries to honor their aid pledges has caused a sharp increase in the budget shortfall in 2011. » Read more