The recurrent deficit in the Palestinian National Authority (PNA) budget during
Q1, 2009 of $ 439 million (Table 1) was substantially higher than the deficit in Q4,
2008 ($ 337 million) and exceeded the quarterly budget deficit target ($ 290
million). The deficit overshooting amounts to $ 150 million. Of this amount, $ 135
million can be decomposed as follows (Tables 1 and 2):

- $ 20 million shortfall in gross domestic revenues
- $ 58 million shortfall in clearance revenues during Q1
- $ 57 million excess spending in transfers (including $ 20 million to
Gaza/UNDP )

This deficit would have been greater if it were not for $12 million shortfall in tax
refunds and if “net lending” expenses were not unusually low in January, 20091
On the financing side there was also a shortfall of about $ 30 million during the
quarter: $ 259 million was received, while the budget called for $ 288 million

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