Link to storyThe Palestinians' new Hamas prime minister, Ismail Haniya, has attacked the European Union and United States for cutting direct financial aid.
He said the move, taken in protest at Hamas' hardline position on Israel, was "hasty and unjust" and would not serve the interests of the Middle East.
The EU and US are calling on Hamas to recognise Israel, renounce violence and accept past peace agreements.
Palestinian leader Mahmoud Abbas said the aid cut would hit ordinary people. The Palestinian Authority (PA) has received about $600m (500m euros; £340m) a year in aid from the EU since its foundation in 1994, with another $400m coming from the US.
The European Commission said on Friday it was suspending direct aid to the PA, with some $36.9m (30m euros; £21m) at stake in the immediate future.
Washington said it would suspend or cancel its projects though it would boost humanitarian aid to Palestinians through United Nations aid agencies.
Behind Mr Haniya's bravado, he and his ministers are deeply worried, the BBC's Caroline Hawley reports from Gaza City.
The new Palestinian government does not have the money to pay the salaries of its civil servants - it is broke and in debt, our correspondent says.
Officials say they will seek urgent help from Arab and Islamic countries.
'Everyone punished'
Referring to his group's election victory in January, Mr Haniya said "the world should respect the choice of the Palestinian people".
"These decisions were hasty and unjust," he remarked after meeting Mr Abbas, the Palestinian president whose allies lost the election.
Mr Abbas said the Palestinian people "should not be punished for their democratic choice".
By cutting aid, the EU and US were "punishing all the people, workers and families", he added. The suspension of EU money covers all direct aid to the government and payment of public employees' salaries with EU funds through the World Bank.
But it does not affect humanitarian aid sent to non-governmental organisations or to United Nations relief agencies.
EU foreign ministers are due to meet next week to discuss what to do about future aid.
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My thoughts:
Isn't "Hamas" the group that sponsors suicide bombing of innocent civilians in their attempt to undermine the Israeli government? I don't know why the US and EU authorities have been providing all this aid to a "government" that sanctions terrorism.