Hamas denies financial crisis as it fails to pay employees' salaries

Gaza Strip: It's been nearly two months that employees of the Hamas government have not received their salaries. But government denies any crisis. However, this goes to illustrate how the government in Gaza is facing a cash crunch.

Although the Islamic government's financial situation isn't much different from the one in the West Bank in not paying their employees their salaries, they are still in denial of any financial crisis.

Dr Ismail Mahfooz, the deputy minister at the ministry of finance in the Gaza government said in a press statement: "The government is not facing a financial crisis, but rather a problem in the liquidity because of the delay of the fund coming from outside."

The Hamas government in Gaza confirmed earlier this week that they were not suffering from a financial crisis despite the current economic problems affecting the other West Bank government.

The government of Gaza doesn't have a total independent economy that allows it to cover its expenses on its own. For that, the government is still in need of the payments and transfers from outside which means that any delays of these amounts will stop the whole economic cycle.

Regular income

Dr Mahfooz added: "The fund which comes from outside of Gaza isn't fixed or regular; we are waiting for these transfers to be sent." Ali Abu Shahla, an economic analyst said

"I don't think that Hamas funds were decreased because of the situation in Syria since Syria doesn't pay sufficient amounts. However, I believe it might have something do with the delay since the leadership of Hamas is based there," Abu Shahla said.

Resources

Abu Shahla added, "The income of the Hamas government depends on many elements that will stop the financial cycle if missed or delayed."

Beside the financial aid and donations that come from outside, the Hamas government has several other income resources like collecting taxes and fees as well as from projects run by the government.

The Gaza government has invested in many projects in order to make profits and add it to the government's treasury.

The Hamas government has recently invested in two main sectors — local tourism facilities and agriculture in the former Israeli colonies on the eastern Gaza Strip.