The Palestinian Authority is scaling back wages paid to its employees in respons...
RAMALLAH, West Bank - The Palestinian Authority is scaling back wages paid to its employees in response to a cash crunch deepened by a dispute with Israel over payments to families of militants in Israeli jails, it said on Sunday.
Israel said the sum represented the amount the PA pays to families of Palestinians jailed in Israel or killed while carrying out attacks or other security offences. As a result, Palestinian Finance Minister Shukri Bishara said the PA would pay full salaries - which had been due on March 1 - only to its lowest-earning employees, or the 40 percent of its workforce that takes home 2,000 shekels or less a month.
An Israeli official, commenting on condition of anonymity, said the PA had a cash-flow problem as a result of U.S. cuts in aid to the Palestinians and the tax revenues dispute but that the situation would not spiral out of control.
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