Israel to Use Palestinian Tax Revenue for Debt

Israel plans to utilize tax revenues collected on behalf of the Palestinian Authority (PA) to settle a nearly 2 billion shekel debt owed to the Israel Electric Company (IEC). Finance Minister Bezalel Smotrich announced that funds totaling 800 million shekels, previously earmarked for administrative expenses in Gaza, will be redirected to this debt, following the Hamas-led attack on October 7, 2023. Smotrich cited increased anti-Israeli actions and Norway's recognition of a Palestinian state as reasons for this decision. The Palestinian Finance Ministry has agreed to release part of funds held in Norway to assist with fuel purchases and electricity debts, although Smotrich remains opposed to funding the PA, accusing it of supporting terrorism. The PA continues to face financial challenges, paying only 50-60 percent of public sector salaries amidst these tensions. The situation reflects the deteriorating relations between Israel and the PA, compounded by ongoing violence in the region.