Haaretz, Apr 13, 2017


The only PA employees in Gaza who were allowed to continue working were those in education, welfare and health; they currently number around 10,000. But their salaries, too, were slashed 30 to 50 percent (depending on the size of the salary).

[...] Thus the PA sent the message that in its view, people registered as West Bank residents are worth more than Gaza residents.

The PA’s attempt to explain the salary cuts as stemming from its high spending in Gaza aren’t convincing. The Aix Group, a think tank of Palestinian and Israeli economists, recently published a study containing proposals for reviving Gaza's economy even under current conditions in which there are no peace negotiations with Israel. It found that contrary to the PA’s claim, the PA’s net spending in Gaza (expenditures minus the revenues it receives from Gaza) doesn’t amount to 40 percent of its budget, but only 15 percent – a reasonable subsidy level.