RAMALLAH, West Bank, (AP) – The Palestinian prime minister says government employees will only be paid half of their salaries this month because international donors are not making good on their pledges.

Salam Fayyad said Sunday donors had pledged $970 million for this year’s budget, but have only come through with around of third of that – about $330 million.

Fayyad says much of the shortfall comes from Arab countries.

Foreign aid accounts for about one quarter of this year’s overall $3.7 billion budget.

Despite the fiscal crunch, he says the Palestinian Authority has sharply reduced its reliance on donor money from the $1.8 billion it received three years ago.

The prime minister says the budget shortfall won’t hold back Palestinian plans to seek U.N. recognition of their state in September.