"If the U.S. and other countries continue to implement their decisions to halt aid to the Palestinian people and their government, then the PNA might fall," the minister was quoted as saying.

"We can't get along without direct aid from the world, particularly fund for the government's budget," al-A'araj said.

He was afraid that chaos might emerge in the poverty-stricken region if the cutoff persists.

The PNA, which is now led by Hamas, has been facing a severe financial crisis since Hamas came to power late in March.

Israel, which lists Hamas as a terrorist organization, has halted a monthly transfer of over 50 million U.S. dollars of tax revenues it collects for the PNA in order to press the militant faction to recognize Israel, renounce violence and accept previous agreements.

The US and the EU also pressed Hamas to change its political agenda and meet the three conditions or it would face financial and diplomatic isolation.

The Palestinian minister said that the cabinet is facing a shortage of up to US$800 million.