Ramallah – The Civil Society Team for Enhancing Public Budget Transparency released a statement, deploring the failure to present the 2019 Public Budget for community discussion and for approval by the Palestinian Council of Ministers to date. This failure is in violation of the Amended Basic Law of 2003 and Law on the Regulation of the Public Budget of 1998. According to the Civil Society Team for Enhancing Public Budget Transparency, justifications based on Article 4 of the 1998 Law are unacceptable, deficient, and false.
The Civil Society Team for Enhancing Public Budget Transparency made reference to Article 3(a) of the 1998 Law, which provides that “[t]he Council of Ministers shall submit the draft public budget law to the Legislative Council at least two months prior to the beginning of the fiscal year.” Article 1 of the 1998 Law also prescribes that the fiscal year commences on the first of January and expires on the thirty first of December of every calendar year. Pursuant to Article 31 of the 1998 Law, the procedures for discussion, approval [by the Palestinian Legislative Council (PLC)], and promulgation of the budget proposal in the form of a law should be finalised prior to the beginning of the new fiscal year. Allowing to delay approval of the Public Budget Law for a maximum period of three months, Article 4 provides that “[i]f it is not possible to approve the draft public budget law prior to the beginning of the new year, […] expenditure shall continue on the basis of monthly appropriations at the rate of 1/12 for each month of the past fiscal year’s budget up to a maximum period of three months.”
Article 4 of the 1998 Law is somewhat overbroad and does not make clear the reasons for delay. However, this provision is established on the basis of the consideration that the delay might be caused untimely deliberations and discussions within the PLC. It builds on Article 3, which explicates the PLC role. In view of the current Palestinian context, however, the PLC is already not in session so as to deliberate the Public Budget Law, raising questions about the legal status of delayed approval of the budget and associated causes. Even if it is consistent with the Law, delayed budget approval may violate the spirit and letter of the law.
The Civil Society Team for Enhancing Public Budget Transparency reiterated that delayed approval and absent deliberations of the Public Budget Law were not specific to this year. It has already been a habitual practice to approve the Public Budget Law within the first three months of the new fiscal year. Hence, the exception has become the rule. The Team also explained that last year’s delayed budget approval was justified by the then current political conditions, talks on the national reconciliation effort, and potential inclusion of a separate budget for the Gaza Strip. The Team has already reaffirmed its position towards the public budget proposal, stressing that political rivalries should neither affect nor be at the expense of citizens or their interests. This means that spending on the Gaza Strip should not be contingent on the political relations between the Palestinian National Authority and Hamas. In principle, the Gaza budget may not, therefore, be an object of discussion. The Gaza Strip is an integral part of Palestine and may not be excluded from any public budget.
The Civil Society Team for Enhancing Public Budget Transparency was of the view that delayed approval of the Public Budget Law was unjustified. Over the past years, the Ministry of Finance has abused Article 4 of the 1998 Law, considering the exception to be the rule. While the 1998 Law vests the legislature with the power to grant an exception and delay approval of the Public Budget Law until the end of March of every year in the event of disagreement, former Ministers of Finance have believed that they had the right to do so and used the exception as if it were the rule.
Against this background, the Civil Society Team for Enhancing Public Budget Transparency hopes that justifications for delay simulate the Palestinian National Council’s decisions on the review of the Palestinian-Israeli economic agreements and relations as well as inclusion of a plan for economic disengagement from Israel. The Team hopes that the Gaza budget be included in the Public Budget Law, ensuring it is not subject to bargaining or any other scenarios. The Team emphasises that the Palestinian internal political divide and conflict should not impinge on or discriminate against citizens’ rights. It hopes that delayed approval of Public Budget Law be tailored to respond to citizens’ priorities, include adequate appropriations for sector strategies, and promote citizens’ perseverance. The Team also confirms its support to the Palestinian leadership’s firm position towards allocations earmarked to the families of prisoners, martyrs and injured citizens, affirming commitment to these families’ right to a decent standard of living.
