The Palestinian Authority is facing a $400 million budget shortfall, the World Bank warned in a report Wednesday, AFP reports. The shortage is expected even if current donor pledges are met.
The report called new funding “critical” and warned that the situation will “likely worsen by the end of 2012.” The PA may be forced to cut pensions and salaries, “which could have severe social impacts,” it stated.
In recent weeks the PA has faced several demonstrations over unemployment and high prices in the areas it controls.