Israel is releasing to the Palestinians a tax revenue payment it froze after last month's election victory by the Islamic militant group Hamas.
"The government has decided to transfer 200 million shekels to the Palestinian government," cabinet minister Zeev Boim told reporters.
Israel had been scheduled to transfer nearly $55 million to the Palestinian Authority last Wednesday but announced at the time it had decided to suspend automatic monthly payments pending a policy review by interim Prime Minister Ehud Olmert.
