Fayad raised the prospect that the PA, which had expected revenues of
$1.14 billion in 2011, would be unable to pay salaries, including to members
of the security forces.
He said Israel has been withholding more than $100
million since the ruling Fatah movement, which controls the PA, agreed to
reconciliation with the opposition Hamas. The two movements were scheduled
to sign an agreement on May 3 in Cairo.
In a news conference on May 2, Fayad said the largest drop in foreign
aid came from Arab countries. The prime minister said Arab states relayed
$236 million in 2010, down from $461 million during the previous year.
"In this difficult time, we ask our Arab brothers to help us
immediately," Fayad said. "Our people will not go hungry."
Officials said the biggest decline came from Gulf Cooperation Council
states. They also cited a decrease by European Union members, while the
United States was said to have met its obligation to provide more than $300
million. The PA has been operating on a budget deficit of more than $900
"What is needed is to move quickly to pressure Israel to release these
funds," Fayad said. "But until that happens, we will not be able to meet our
obligations, not only in salaries, but in other payments, without additional