The Palestinian cabinet discussed Tuesday in its weekly meeting the difficult financial situation, according to a statement issued at the conclusion of the meeting. Prime Minister Salam Fayyad presented the cabinet with a report on the financial situation, which was described as “still difficult due to shortage in foreign aid.” He said that “this situation requires a reconsideration of preliminary estimates regarding the financial plan for the next two years.” Fayyad presented initial ideas and steps to accelerate government plan to do without foreign aid allocated to finance current expenses. The cabinet is expected to discuss these ideas over the next few weeks to prepare for next year’s budget, which is supposed to lower deficit. It renewed calls on donor countries, mainly Arab countries, to provide financial support for the Palestinian Authority during what it describe as “these hard times” to help overcome the current crisis and deal with different needs during the remaining months of this year.
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