Israel's security cabinet this week approved implementation of a law that allows it to deduct over half a billion shekels from tax revenues collected for the Palestinian Authority, over the latter's stipend payments to terrorists and their families.

The Palestinian Authority condemned the move as robbery, while officials in the Israeli security establishment expressed concern that funding cut could destabilize the situation in the Palestinian Authority. KAN's Naomi Segal asked Prof. Hillel Frisch, a senior research fellow at the Begin-Sadat Center for Strategic Studies at Bar-Ilan University, about the significance of the decision.