Israel is considering subtracting from the monthly tax revenue it transfers to the Palestinian Authority the amount the PA pays terrorists and their families, a government official said Wednesday. According to the official, holding back the monthly tax revenues – or a part of them – is one option Israel is considering in response to the Palestinian Authority's unilateral application last week to 15 international conventions and treaties, a move that sent the diplomatic talks into a tailspin. The document said the PA received $786m in foreign aid in 2012, a substantial component of its $3.1b budget that year. According to these figures, money paid out to the terrorists and their families represents fully 5% of the PA's annual total budget. The document was written in January but released Wednesday by the PMO. One government official said that it would be "morally justified" for Israel to subtract from the money it transfers to the PA each month the amount that is spent on grants and monthly payments to terrorists and their families. The PA cannot complain about its financial difficulties, and then pay out huge sums to support terrorists, he said. According to the document, "the Palestinian Authority is highly dependent on foreign aid. This money, which supports the PA budget, is fungible to meet payments for imprisoned and released terrorists." The document stated that 78 of the 104 convicted terrorists that Israel released as part of the deal that led to the re-starting of negotiations in July receive monthly stipends of up to $3,500, and grants of up to $25,000. "In this way the PA is giving a strong financial incentive to terrorism, including through the misuse of fungible foreign financial assistance," the document read. "Publically rewarding convicted murderers gives an official stamp of approval to terrorist attacks on Israeli civilians. It is a highly persuasive form of incitement to violence and terrorism." The document further stated that providing financial support for terrorists "not only violates basic morality, it encourages further terrorist outrages," and "may tempt young Palestinians to seek an answer to familial financial difficulties through the use of violence."