Gaza Municipality Warns of Severe Financial Crisis Threatening Essential Services

The Gaza Municipality has warned of a severe financial crisis threatening the continuation of essential services for about 900,000 residents and displaced people, after the average monthly collection dropped by more than 90% to 580,000 shekels, compared to 4.9 million shekels monthly in 2023. Accumulated receivables reached 1.12 billion shekels, and liabilities reached 275 million shekels. The municipality needs urgent funding of at least 4 million shekels monthly, and appealed to citizens to pay arrears starting from 50 shekels monthly.

The Gaza Municipality has warned of a severe financial crisis threatening its ability to continue providing essential services to about 900,000 residents and displaced people in the city, amid a significant and unprecedented decline in its own revenues. In a statement on its financial situation until the end of June 2026, the municipality said that the average monthly collection dropped by more than 90% during the current year, reaching only about 580,000 shekels, compared to about 4.9 million shekels monthly in 2023. It explained that the value of accumulated receivables owed to the municipality by citizens and institutions reached about 1.12 billion shekels, while its financial liabilities exceeded 275 million shekels, including 192.5 million shekels for employee rights and pensions. The municipality stressed its need for urgent funding of at least 4 million shekels monthly to secure the minimum operation of its facilities, distributed as 3 million shekels for employee salaries, 550,000 shekels for paying the Palestinian Pension Authority dues, and 450,000 shekels for emergency operational expenses. It warned that the continued deficit threatens a decline in services and delays in employee rights, calling on partners and supporting institutions to intervene urgently, and appealed to citizens who can pay part of the arrears starting from 50 shekels monthly via electronic platforms.