The Palestinian Authority in Ramallah has a budget deficit of over $500m and has reached its borrowing limit, taking over $1bn from the banks.
Officials say that while the PA aims to reduce its dependency on foreign aid, at this stage it still relies on donors.
Al Jazeera spoke to people collecting their paycheque, who say that lately they have only been receiving half of their total salaries. They are calling on the PA to solve this problem as quickly as possible.
Al Jazeera's Nicole Johnston reports from Gaza on why the PA is so short of cash.
Source: Al Jazeera