Security cabinet says it has 'cut all contact' with Gaza, vows to return detained laborers back to Strip; Washington had pushed Israel to release funds after Smotrich freeze
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Finance minister accused of seeking to 'inflame' West Bank by withholding millions, as Netanyahu, Gallant reportedly back handing over cash to help avert escalation of violence
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The EU is Ramallah's single largest donor, but has sent almost no aid since 2020; Brussels has repeatedly raised concerns of incitement in Palestinian education

Israel hands over full NIS 3.7 billion in tax revenues it collects on Palestinians' behalf, despite law requiring withholding amount PA pays security detainees and families

Ministers decide to withhold some NIS 600 million out of 2.4 billion total to compensate for PA payments to terrorists and their families

Palestinian Authority will officially return to accepting monthly transfers of taxes that Israel collects on its behalf, which constitute over 60 percent of PA budget

European Union gives €23 million with focus on supporting health and education workers during pandemic; Palestinians continue to reject tax transfers from Israel

Palestinian Authority reinstates limited lockdowns in Hebron, Nablus, as mosques and churches shuttered across territory

As tensions with Jerusalem rise over annexation and with pandemic crippling its economy, Ramallah is running a ballooning deficit despite tough austerity measures

Security sources say upheaval from contraction in growth could be exacerbated by potential Israeli annexation, leading to West Bank unrest