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Mr. Fayyad said his government is on “the verge of being completely incapacitated.” About 1 million Palestinians who depend on government salaries “are at a very serious threat of being pushed into a circle of poverty,” he said. This would double the poverty rate, which currently stands at 25 percent in the West Bank and Gaza, he said.

Mr. Fayyad said these dire consequences would happen in “short order,” but he would not give specifics.

Mohammed Sobeih, an official in the 22-nation Arab League, acknowledged Sunday that the Palestinian Authority is in a “critical situation.” He said the head of the league has written to member states urging them “to pay the pledged $100 million.”

The growing hardships have sparked repeated protests in the West Bank. Civil servants have held several warning strikes. On Sunday, the union decided to step up protests, calling for four days of strikes over the next two weeks.