Palestinian President Mahmoud Abbas issued a decree-law on Monday regarding the general budget for the fiscal year 2025. The decree-law was recommended by the Council of Ministers. The budget was prepared within the framework of austerity and emergency policies, with a focus on rationalizing spending and directing resources toward essential sectors.

The Government Communication Center reported that the 2025 budget aims to achieve a balance between meeting citizens' growing needs and the demands of financial and administrative reform, in light of continued illegal Israeli deductions from clearance revenues, which have exceeded 7 billion shekels in recent years.

He pointed out that total expected revenues for 2025 amount to approximately NIS 16.041 billion, including expected domestic revenues of NIS 5.807 billion and clearance revenues of NIS 10.234 billion, while total public expenditures are expected to reach NIS 20.645 billion. If the current illegal Israeli deductions from clearance funds continue, the funding gap is expected to reach NIS 6.923 billion. This, of course, does not include external support, as the government seeks to mobilize external funding sources to address as much of the projected deficit in the 2025 budget as possible.

The 2025 general budget witnessed extensive discussions with civil society organizations, as part of efforts to enhance transparency and consultation. It was developed based on the principle of monetary rationing and the identification of spending priorities, ensuring the stability of vital sectors, particularly health, education, social protection, and security.

Strict austerity measures to confront the financial siege

A package of austerity measures has been adopted to minimize operational and capital expenditures to address the financial blockade. These include: reviewing organizational structures, merging or eliminating non-essential institutions, halting expropriations and the purchase of government buildings, and limiting their rental. Furthermore, the purchase or replacement of government vehicles has been suspended except in cases of extreme necessity. Oversight of non-essential travel has also been strengthened, and development expenditures have been directed to completing ongoing projects only.

Controlling spending and enhancing financing

The government's 2025 budget focuses on controlling public spending and mobilizing external financing to support priority projects, with the goal of enhancing the ability to meet financial obligations, including paying employee salaries and repaying financial dues to private sector suppliers and banks.

Publishing the 2025 General Budget Draft via the Legislation Platform

It's worth noting that the Ministry of Justice published the draft 2025 general budget on the legislation platform, as part of the government's efforts to enhance transparency and coordination among various sectors. The ministry invited citizens and institutions from both the public and private sectors to review the draft and submit their comments before its approval.