bi-national state.
Those payments are necessary for keeping up the PA's popularity, and not paying the stipends is tantamount to dismantling the PA. Besides, as Palestinians are tried in separate kangaroo courts with a 99.74% conviction rate, it's doubtful that any of those tried got a fair trial. (http://972mag.com/conviction-rate-for-palestinians-in-israels-military-courts-99-74-percent/28579/)
It's also an attempt to sabotage the Palestinian economy further - every time Israel withholds payments the PA suffers a liquidity crisis with a corresponding slump in Palestinian economic activity, as reported by the World Bank:
Economic Monitoring Report to the Ad Hoc Liaison Committee
Source: The World Bank, April 19, 2016
(snip p1, under "Executive Summary"
Overall growth in the Palestinian economy was limited to 3.5 percent due to a growth slowdown in the West Bank from 5.3 percent in 2014 to an anemic 2.5 percent in 2015 in the face of a significant decline in foreign aid and the liquidity squeeze caused by the Israeli decision to suspend the transfer of the Palestinian Authoritys (PA) taxes during the first four months of 2015. Given that population growth in the Palestinian territories is around 3 percent, economic growth witnessed in 2015 was not enough to increase per capita incomes.
Read more:
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2016/04/14/090224b084299d98/3_0/Rendered/PDF/main0report.pdf
I suppose all those one-staters who support this madness will get their wish of a bi-national state fulfilled. This is just another step towards that goal...