West Bank and Gaza - Public Expenditure Review of the Palestinian Authority - Policy Priorities Amid a Spiraling Fiscal Crisis

Jul 19, 2026

A June 2025 World Bank public expenditure review for the West Bank and Gaza assesses fiscal pressures facing the Palestinian Authority. The report outlines recent macroeconomic and fiscal trends, then analyzes key spending areas including the public-sector wage bill, the Palestinian pension system, the Palestinian health system, and the education system. It highlights drivers, reviews financing and service delivery contexts, and presents conclusions and reform priorities supported by policy-focused recommendations.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages172

Reading Time7 h 13 min

AccessFree to download

Executive Summary

Chapter 1 Recent Macroeconomic and Fiscal Trends

Macroeconomic Performance

Fiscal Developments, 2015-2023

Chapter 2 Overview of the Public-Sector Wage Bill

Key drivers of wage-bill growth

Overview of employment

Key drivers of employment growth

Overview of salaries

Public-sector management practices and outcomes

Reform priorities

Conclusions and recommendations

Chapter 3 The Palestinian Pension System

Overview of the pension system

Fiscal Simulations: status quo and parametric reforms

Conclusions and recommendations

Chapter 4 The Palestinian Health System

Overview of the health system

Service delivery context

Financing flows in the Palestinian health system

Public health spending

Conclusions and recommendations

Chapter 5 The Palestinian Education System

Overview of the Education Sector

Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized June 2025 West Bank and Gaza Public Expenditure Review of the Palestinian Authority Policy Priorities Amid a Spiraling Fiscal Crisis P500604 Economic Policy © 2025 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; [Internet: ](Internet: www.worldbank.org)[www.worldbank.org](Internet: www.worldbank.org) [Some rights reserved.](Some rights reserved.) This work is a product of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, links/footnotes and other information shown in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The citation of works authored by others does not mean the World Bank endorses the views expressed by those authors or the content of their works. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: “World Bank. 2025. Public Expenditure Review of the Palestinian Authority: Policy Priorities Amid a Spiraling Fiscal Crisis. © World Bank.” Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [pubrights@worldbank.org](pubrights@worldbank.org). West Bank and Gaza Public Expenditure Review of the Palestinian Authority Policy Priorities Amid a Spiraling Fiscal Crisis June 2025 Middle East and North Africa Economic Policy Contents Acknowledgements ............................................................................................................................ 7 Acronyms and Abbreviations.............................................................................................................. 8 EXECUTIVE SUMMARY ..................................................................................................................... 11 CHAPTER 1 RECENT MACROECONOMIC AND FISCAL TRENDS ............................................................26 Macroeconomic Performance .......................................................................................................... 26 Fiscal Developments, 2015-2023...................................................................................................... 32 CHAPTER 2 OVERVIEW OF THE PUBLIC-SECTOR WAGE BILL ...............................................................53 Key drivers of wage-bill growth ........................................................................................................ 54 Overview of employment ................................................................................................................. 58 Key drivers of employment growth .................................................................................................. 59 Overview of salaries ..........................................

FAQs

What does the review focus on for the Palestinian Authority?

The review focuses on public expenditure priorities amid a spiraling fiscal crisis, covering macro-fiscal trends and major spending areas such as wages, pensions, health, and education.

Which fiscal period is covered in the chapter on fiscal developments?

Fiscal developments spanning 2015 to 2023 are covered in the macroeconomic and fiscal trends chapter.

What are the main analytical areas for the public-sector wage bill?

The report analyzes wage-bill growth drivers, employment and salary overviews, public-sector management practices, reform priorities, and concludes with recommendations.

Jul 19, 2026

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