Effective public financial management is essential for the Palestinian Authority (PA) to deliver services, maintain fiscal stability, and foster economic resilience. Yet the PA’s financial system faces persistent challenges: volatile revenues, weak expenditure controls, growing arrears, outdated revenue administration, and limited professionalisation in procurement. These constraints are compounded by political instability, movement restrictions, and declining donor support, all of which strain the PA’s ability to plan, execute, and report on public spending.

At the same time, ongoing progress in Integrated Financial Management Information System (IFMIS) modernization, procurement regulations, fiscal reporting, and the establishment of the Revenue Commission indicates readiness for further reforms.

The Palestinian Authority improved its public financial management and procurement management.

Outcomes (objectives) of the planned phase 

Outcome 1: Improved efficiency, predictability, and control of public expenditure management across the PA.

Outcome 2: Strengthened financial accountability and transparency across PA agencies through modernised systems, enhanced oversight, and improved compliance with international standards. 

Outcome 3: Enhanced domestic revenue mobilisation through modernised administration, expanded taxpayer services, and integrated digital revenue systems.

Outcome 4: Improved value for money, transparency, and professionalisation in public procurement.

Outcome  5:  Strengthened use of administrative and macro-fiscal data for evidence-based policymaking.

Direct:  

• Ministry of Finance (MoF)

• High Council for Public Procurement Policies (HCPPP)

• Palestinian Anti-Corruption Commission (PACC)

• State Audit and Administrative Control Bureau (SAACB)

• Palestinian Central Bureau of Statistics (PCBS)

Indirect:

• Ministry of Health (MoH)

• Ministry of Local Government (MoLG)

• The Palestinian private sector: Companies supplying goods and services to public institutions stand to gain from more orderly procurement and more timely, predictable payments

• Palestinian Citizens: More efficient budgeting, procurement, and payment systems will help ensure essential goods and services reach the population on time and at appropriate cost 

Erwartete Resultate:  

Output 1.1: Strengthened budget preparation, expenditure control, and cash planning procedures.

Output 1.2: Improved transparency and automation of intergovernmental transfer reconciliations.

Output 1.3: Enhanced expenditure management and funds flow to improve service delivery in key sectors.

Output 2.1: Upgraded and expanded Integrated Financial Management Information System (IFMIS) functionalities to strengthen financial control and reporting.

Output 2.2: Strengthened debt management through improved systems, planning, and regulatory frameworks.

Output 2.3: Improved accounting and financial reporting aligned with international standards. 

Output 2.4: Enhanced anti-corruption capacity through improved systems and staff competencies at PACC.

Output 3.1: Strengthened revenue administration through improved organisational functions and operational capacity.

Output 3.2: Improved taxpayer services through expanded e-services and strengthened outreach.

Output 3.3: Operationalized and enhanced revenue IT systems to support efficient revenue collection.  

Output 4.1: Professionalised procurement workforce at the HCPPP through structured training and certification. 

Output 4.2: Improved sector-specific procurement practices at the HCPPP to enhance value for money and efficiency. 

Output 4.3: Strengthened HCPPP’s policymaking, monitoring, and oversight functions.  

Output 5.1: Enhanced macro-fiscal forecasting models at the PCBS for improved fiscal planning. 

Output 5.2: Improved measurement of informal sector activity and its integration into national accounts through PCBS. 

Output 5.3: Enhanced sharing of administrative data between MoF and PCBS.

Resultate von früheren Phasen:   N/A