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A.
Budgetary Operations and Financing
1.
Summary and overview
a. The fourth quarter (Q4), 2008
The recurrent deficit for the Palestinian National Authority (PNA) on a commitment basis during Q4 of 2008 of $ 337 million, on a commitment basis, was about $ 100 million lower than the deficit during Q3. (Table 1)
This retrenchment can be fully attributed to a tightening of expenditure policy to remain within the annual budgetary appropriation. Non wage expenditures declined by about $ 90 million from the previous quarter (Table 2). Wage expenditure was marginally higher in NIS terms, consistent with new teacher hiring at the beginning of the school year2. On the other hand, net lending to municipalities reflecting PNA payment of their utility bills declined, due to higher bill collection rates and lower fuel prices.
External budget support of $ 351 million fully financed this deficit, and allowed for the repayment of the remaining wage arrears in November
($ 36 million, Tables 4 and 7)
b. Budget execution in 2008.
Budget performance in 2008 achieved substantial progress towards attaining fiscal sustainability.
Budget execution in 2008 has been strong on both revenue and expenditure performance. Gross budget revenues on a commitment basis have exceeded budget targets by $ 33 million. (Tables 1 and 5) Wage expenditures have been below the budget appropriation and declined in real terms. Operational expenditures and transfers in 2008 have been virtually in line with budget appropriations (exceeding it by $ 3.7 million in NIS terms, or 0.04 % of appropriations, Table 2) despite a rate of inflation (8%) double what was foreseen in the budget.
| Attachment | Size |
|---|---|
| FiscalDevelopments4thquarterreport.pdf [2] | 38.13 KB |
Links:
[1] http://www.americantaskforce.org/resources
[2] http://www.americantaskforce.org/sites/default/files/FiscalDevelopments4thquarterreport.pdf
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