Palestinian Budget Crisis Amid Controversial 'Pay for Slay' Payments

Despite a budget deficit, the Palestinian Authority continues to fund 'pay for slay' payments to terrorists and their families, amid criticism and legal challenges. They are also processing new payments for 'martyrs' from recent conflicts. Stipends to public sector workers remain reduced.

The Palestinian Authority (PA) has been criticized for continuing its 'pay for slay' payments, despite operating at a 172 percent budget deficit. According to Palestinian Media Watch, the PA officially recognized 899 new prisoners from Gaza, declaring them eligible for the controversial payouts.

The PA is committing to paying over 60 million shekels (approximately USD 16.2 million) monthly to 9,750 terrorist prisoners. Stipends for 'martyrs' will take time before disbursements are made. Israel has long argued that these payments incentivize terror attacks.

'What does that say about their budgetary priorities regarding pay for slay?' questioned Itamar Marcus, founder and director of PMW. Marcus criticized the PA's decision to maintain full payments to incarcerated terrorists while slashing salaries for public sector workers. Despite international aid, budget constraints, and a shrinking revenue stream due to ongoing conflict, the PA continues prioritizing payments to terrorists over other budgetary needs.

The PA's decision comes amid increased financial aid from the World Bank, which upped its annual grant to Ramallah to USD 300 million. This significant increase follows the PA's petition to Israel's High Court of Justice to reverse a law aiding victims of Palestinian terror in seeking compensation.

The PA has allocated approximately seven percent of its budget to the so-called 'Martyr's Fund' which provides stipends based on the duration of a terrorist's incarceration. This fund has received renewed scrutiny following the murder of American Taylor Force by a Palestinian terrorist, which led to the enactment of the Taylor Force Act by the U.S. Congress, halting aid to the PA as long as these stipends continue.