RAMALLAH, March 27 (Xinhua) -- The Palestinian National Authority (PNA) will ratify its 2012 fiscal year budget at 3 billion U.S. dollars, with a shortfall of 1.3 billion dollars, a Palestinian official said Tuesday.
Ghassan Al-Khatib, spokesman for the Palestinian government in the West Bank, blamed "unprecedented lack" of foreign aid for the deficit, warning that the shortfall threatens the PNA's ability to carry out its services, especially in the education and health sectors.
He added that some 300 million dollars of unsecured funds were supposed to go to development and investment projects.
Ahmed Majdalani, Palestinian minister of labor, said this year' s budget was 700 million dollars less than last year's. "The budget this year is of a deflationary nature due to the difficult, complicated financial situation."
Earlier this month, the World Bank issued a report warning that the PNA's fiscal crisis will deepen if the recent decline in donor continues.
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