Identifier
Created
Classification
Origin
06JERUSALEM1377
2006-04-04 11:57:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:  

PLC APPROVES EXTENSION OF PA'S 2005 BUDGET

Tags:  EFIN ECON KWBG 
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VZCZCXYZ0042
OO RUEHWEB

DE RUEHJM #1377 0941157
ZNY CCCCC ZZH
O 041157Z APR 06
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1367
INFO RUEHXK/ARAB ISRAELI COLLECTIVE IMMEDIATE
RHEHNSC/NSC WASHDC IMMEDIATE
RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
C O N F I D E N T I A L JERUSALEM 001377 

SIPDIS

SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
WILLIAMS/GREENE/LOGERFO/WAECHTER; NSC FOR ABRAMS, DORAN,
LOGERFO; TREASURY FOR ADKINS

E.O. 12958: DECL: 04/03/2016
TAGS: EFIN ECON KWBG
SUBJECT: PLC APPROVES EXTENSION OF PA'S 2005 BUDGET
AUTHORITY UNTIL MAY 31


Classified By: Consul General Jake Walles for reasons 1.4 (b) and (d).

C O N F I D E N T I A L JERUSALEM 001377

SIPDIS

SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
WILLIAMS/GREENE/LOGERFO/WAECHTER; NSC FOR ABRAMS, DORAN,
LOGERFO; TREASURY FOR ADKINS

E.O. 12958: DECL: 04/03/2016
TAGS: EFIN ECON KWBG
SUBJECT: PLC APPROVES EXTENSION OF PA'S 2005 BUDGET
AUTHORITY UNTIL MAY 31


Classified By: Consul General Jake Walles for reasons 1.4 (b) and (d).


1. (SBU) The Palestinian Legislative Council (PLC) approved
in three readings March 29 an amendment to the Budget Law
extending the PA government's legal authority to collect
revenues and authorize expenditures based on the 2005 budget
until May 31, 2006, when the Finance Minister must present
the 2006 budget to the PLC. (Note: An amendment was
necessary since article four of the Public Budget and Finance
Law (1998) stipulates that, if the draft public budget law is
not ratified before the start of the new fiscal year (on
January 1),expenditure shall continue at a monthly rate of
1/12 for each month based on the previous year's budget but
only for a period not exceeding three months. End note.)
According to press reports, PLC member and PA Finance
Minister Omar Abdel Razeq had requested the special PLC
session but had sought an extension until June 30.


2. (C) Third Way PLC member Salam Fayyad told EconChief
March 31 that the budget debate showed both Hamas and Fatah
PLC members' poor understanding of the budget process. He
noted that "we helped them out on this one since they had no
clue on how to move forward." He described his Hamas PLC
colleagues as "very suspicious and extremely hard to deal
with."


3. (C) International Monetary Fund (IMF) Resident
Representative Joel Toujas said March 30 that he did not
believe the new Finance Minister would be able to prepare a
2006 budget to submit to the PLC without including the
clearance revenue that Israel collects on behalf of the PA.
Israel has frozen transfers of that clearance revenue to the
PA since the new PLC was sworn-in, February 18.
WALLES