Finance Minister Bezalel Smotrich approved the allocation of 91 million shekels from the previously withheld Palestinian Authority funds in Israel, redirecting them to Israeli families impacted by terrorism.
This move marks one of several economic measures Smotrich has initiated targeting the Palestinian Authority. A new system was implemented under his direction at the Finance Ministry, enabling Israel to bypass the frozen status of the PA’s tax revenue by deducting amounts owed to Israel — including financial compensation for families of terror victims and substantial unpaid bills to the Israel Electric Corporation.
Previously, when Israel halted the transfer of funds to the PA, the freeze was absolute — meaning that while the PA didn’t receive the money, those owed compensation or payments by the PA also didn’t benefit from the withheld sums.
With this change, the funds are now being sent straight to the rightful recipients: families who are legally entitled to damages due to acts of terrorism, and Israeli institutions like the Electric Corporation, which have provided services to the PA without receiving full payment.
In addition, following the October 7 massacre, Israeli authorities froze billions of shekels earmarked as “Gaza funds” — money that had been designated for use in the Gaza Strip or for projects directly aiding the enclave.
{Matzav.com}
