The United States has increased its financial aid to the Palestinian Authority, but linked this aid to progress in Israeli-Palestinian peace talks, Palestinian news agency Ma'an reported on Wednesday.

The American aid will be increased from $426 million in 2013 to $440 million in 2014, said Maen Rashid Areikat, the head of the PLO delegation in Washington DC.

Despite the increase, the 2014 US aid is significantly lower than previous years. In 2011, the US provided the PA $545 million in aid money, and $495 in 2012.

The United States Agency for International Development (USAID) provides funding for economic projects, security, judiciary needs and promotion of government transparency.

Ahead of the resumption of peace talks, US Secretary of State John Kerry introduced a $4 billion economic plan to revitalize the Palestinian economy.

According to Kerry, the plan will focus on developing the Palestinian private economy, a key ingredient for economic independence.

Tovah Lazaroff contributed to this report.

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