The Coalition for Integrity and Accountability- AMAN held a special meeting with Minister of Finance in Palestine, Shukri Bishara, which was attended by representatives from the AMAN Coalition such as its Chair and Members of its Board, as well as the Executive Director and some of the executive staff. Those who attended from the Ministry of Finance included Fareed Ghannam, Director General for Budget. The meeting aimed at exploring relationship strategies between the Ministry of Finance and the AMAN Coalition and looked into prospects for the future.
AMAN Chair, Abed Al Qader Al Husseni, welcomed Minister Bishara and all the attendees saying, “We endeavor to build relations based on harmony and full partnerships between the State and civil society institutions”. He added, “At AMAN, we do not seek to stall [government ventures]; we seek to assist the government in taking exemplary measures and adopting best practices. We believe that working with transparency in public affairs is the best way to improve performance and strengthen public institutions”. Al Husseni requested that a dialogue session be arranged between civil society institutions and the Ministry of Finance, organized and chaired by the National Team in Support of Budget Transparency. Al Husseni suggested that civil society organizations and the media should take part because “we believe that people have a right to know about the public budget, especially in the absence of a parliament, and we hope that this achievement will resonate with the civil society”.
The meeting was distinguished by the esteemed participants and the candor of the discussions. In the meeting, Bishara affirmed that communication with civil society institutions was of upmost importance to them, and that civil society’s understanding of the challenges and concerns that the ministry deals with will play a significant role in overcoming them. The minister revealed that work had begun on preparing the upcoming budget and he called for the civil society institutions’ active participation in drafting and revising it. He also welcomed the idea of arranging a meeting with the National Team in Support of Budget Transparency in the near future and promised to attend it in person. The minister also presented an overview of the policies, factors and complications that have an effect on the formation of the general budget and the management of public funds.
In his speech that he delivered at the meeting, the minister said, “The biggest challenges that face the Ministry of Finance and the Palestinian Authority is the phenomenon of ‘donor fatigue’. We have felt the effects of this with foreign aid falling by 19% between the years 2013 and 2014, with expectations of it falling by 22% this year. He added that almost $500m worth of foreign aid had been added to the budget by some foreign states, and that these funds were specifically for the rebuilding and construction plans in Gaza and to deal with humanitarian relief requirements.
Bishara informed the attendees of the ministry’s intention to take a serious look at the biggest weakness in the economic system—the percentage of GDP from tax revenue. At 70%, it is one of the highest in the world and unsustainable.
The minister explained that they had a “funding gap in the 2015 budget that is worth around $400 a year”. He explained, “The expenditure is 15bn shekels, while the expected net income is 11bn shekels; making the anticipated deficit 4bn shekels a year. Finally, funding is expected to top $800m”.
