The Role Non-Sovereign Revenues in the Financing Palestinian National Authority Budget and Ways to Activate

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Haroon Khalid Abdel Raheem Abu Wahdan

This study aims to shed light on the non-sovereign revenues as one of the Palestinian public budget revenues, and to find out the contribution of these revenues in the Palestinian public budget. Moreover, it aims to know more about the sources of the Palestinian budget funding. The analysis of the collected data depends on the analytical and descriptive analysis that will enable studying and describing the current situation of non-sovereign revenues. To do so the data collection tool was developed as a questionnaire, which distributed to the employees in the Ministry of Finance. In addition, it depends on analyzing the public revenues of the Palestinian Government budget during the last five years concerning the budget and public revenues. The study consists of five chapters as follows: The first chapter discusses the study introduction, its importance, methodology and limitations. The second chapter describes the theoretical framework of the study, which discusses the public finance and public budget development, the public revenues main categories. In addition, it aims to recognize some public principles in the public revenues and their economic effects. Moreover, it aims to analyze the public revenues in the budget of the State of Palestine for the years 2008-2012 according to the size of each type of revenues and its role in financing the State of Palestine budget. The questionnaire was distributed to six Palestinian areas. The distributed questionnaires were to a sample of 100 people collected, symbolized and installed on computer application, analyzed by using statistical package of social science (SPSS). The third chapter includes the study methods and procedures. The results of the study shows low agreement on main question – “what is the role of non-sovereign revenues in the finance of the state of Palestine”? It also shows that the non-sovereign revenues have formed 2% of the net Palestinian Public revenues. Moreover, it shows that sources of these revenues are limited in the Palestinian government budget. These revenues are not announced in details in the budget, and the Palestinian government does not have enough abilities to activate the non-sovereign revenues. The government also faces several obstacles that hinder activating the non-sovereign revenues. Israeli Occupation and the economic treaties that limit the states economic activities are on top of these obstacles. Those facts are discussed in the fourth chapter that includes analyzing the data and testing hypotheses. Chapter five discusses the results of the study’s questions and its hypotheses. According to the study results, the following recommendations are suggested: 1. The necessity of increasing the size of the non-sovereign revenues through increasing the capital investment expenditures and improving the governmental properties. 2. The Palestinian budget and the Ministry of Finance reports should be clear and transparent and represent the size of the non-sovereign revenues. 3. It is essential for the government to make a future investment plans, training and qualifying administrative abilities of public employees. 4. Seeking treaties that help Palestinian products inter international markets to overcome deficiency in the commercial scale. 5. Gathering all international efforts against collective sanctions that Israel uses to get political concessions.