Palestinian Authority Faces Fiscal Crisis Amid Ongoing Conflict

The World Bank has warned of a significant risk of fiscal collapse for the Palestinian Authority, citing a rapidly widening gap between incoming revenues and essential public expenditure amid the ongoing war between Israel and Hamas.

The fiscal situation of the Palestinian Authority, which runs the West Bank, has worsened in the last three months, "significantly raising the risk of a fiscal collapse," the World Bank said on Thursday amid the war between Israel and Hamas in Gaza.

"The rapidly widening gap between the amount of revenues coming in, and the amount needed to finance essential public expenditure, is driving a fiscal crisis," it said.