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Palestinian Government Budget of 2014 and its Government failure
Government Failure:
Government intervention to resolve market failures can also fail to achieve a socially
efficient allocation of resources. Government failure is a situation where government
intervention in the economy to correct a market failure creates inefficiency and leads to a
misallocation of scarce resources.
Some of Palestinian government failures
1- Budget Deficit: The amount of deficit is 1.3 Billion of the budget of 2014 which lead
the Palestinian Authority to more the forgen Aid from the developed countries.
2- Unemployment: “Unemployment Rate in Palestine increased to 25.20 percent in the
fourth quarter of 2013 from 23.70 percent in the third quarter of 2013. Unemployment
Rate in Palestine is reported by the Palestinian Central Bureau of Statistics.
Unemployment Rate in Palestine averaged 22.53 Percent from 1995 until 2013, reaching
an all time high of 35.60 Percent in the third quarter of 2002 and a record low of 8.80
Percent in the second quarter of 2000. In Palestine, the unemployment rate measures the
number of people actively looking for a job as a percentage of the labour force. This page
provides - Palestine Unemployment Rate - actual values, historical data, forecast, chart,
statistics, economic calendar and news. 2014-03-17"
3- Tax evasion and free – rider:
The financial situation in the Palestinian Authority remains week, difficult and suffering
from the recession because of total dependence on foreign aid, including more than a
billion and a half billion dollars, in addition to tax evasion is estimated at more than 70%,
