Funds were cut after the election of the militant Hamas movement earlier in the year.
Tens of thousands of Palestinian civil servants have not received a full month's salary for more than six months. Many are now striking in protest.
The BBC News website asked four Gaza residents for their views on the prospects of a national unity government. Should Hamas should recognise Israel?
FathiGaza City "We are the ones who need recognition"
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MajedaKhan Younis "The new government will represent all people"
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