Aid cuts 'will hit Palestinians'

By Jon Leyne
BBC News, Jerusalem

Hamas, and its PM Ismail Haniya, took office last month

Palestinians face a bleak humanitarian situation because of cuts in foreign aid after the Hamas-led government took office, the UN has warned.

It says poverty will rise sharply and the security situation could become very volatile if there is a total cut in Palestinian Authority funding.

Israel has stopped transferring tax and customs revenues and the EU and US have suspended direct aid.

Hamas is looking for new money from Russia and Arab and Islamic states.

Salary threat

The UN points out that a quarter of the Palestinian population depends on government salaries.

If those stop, the UN says there could be a massive increase in poverty.

HAVE YOUR SAY Having aid cut from the US and the EU, Palestinians should now turn to Iran, the main supporter of Hamas Abdelilah Boukili, Marrakesh Send us your views

Education, health and social services will all be affected. Public health could be damaged if sewage and rubbish collection fall apart.

Most damaging could be the effect on security if the members of the Palestinian security forces are not paid.

So far this is only a warning. Palestinian salaries were paid last month, at least in part. Financial crises are a familiar feature of the PA's ramshackle government.

But, as the UN makes clear, this one could be much more serious than ever before.