Hamas dismisses rumors of a financial crisis, and insists its money woes are temporary. However, it has resorted to an unpopular tax drive to raise money, suggesting that a heavy blockade on the territory, an Egyptian crackdown on smuggling and an increasingly expensive government bureaucracy are taking their toll.

The hunt for revenue has prompted a rare public backlash, hinting at a small crack in Hamas’ hold on power. A 40 percent tax on cigarettes set off a flurry of angry text messages among smokers, and a small opposition group warned the new taxes could unleash a popular revolt.

Hamas acknowledges it is having trouble bringing in money from abroad -- no small problem for a government that says it raises only 10 percent of its revenue locally.

The current crisis reflects Hamas’ dilemma: It wants to be both a resistance group and a government providing for 1.5 million people. Hamas’ refusal to soften its ideology has perpetuated a border blockade by Israel and Egypt. The closure has further impoverished Gazans and has put a heavier load on the government.

Still, Hamas largely managed to make ends meet.

In recent months, however, Egypt disrupted the balance by clamping down hard on the smuggling. Just last week, four Palestinians were killed when Egypt blew up a tunnel shaft.

Issa Nashar, mayor of the Gaza border town of Rafah, says he believes dozens of some 400 tunnels are idle.

An Arab diplomat, speaking on condition of anonymity because he is not authorized to brief reporters on security issues, said Egypt is trying to disrupt the cash flow to pressure Hamas into signing a reconciliation agreement with Palestinian President Mahmoud Abbas.

As the money flow slows, running Gaza’s government is becoming more expensive. Hamas has increased the size of its public payroll from a few thousand to 32,000 civil servants and troops, in part a response to pressure to find jobs for supporters.

With a 2010 budget of $540 million, Hamas needs $16 million a month just for salaries, said Deputy Finance Minister Ismail Mahfouz. In March, the government was unable to cover the payroll in full, paying each employee only $400; those who normally earn more were promised the rest later. A midlevel civil servant makes about $700 a month and a top earner about $1,100.

Mahfouz confirmed Sunday that April salaries would also not be paid in full.

Later Sunday, Gaza Prime Minister Ismail Haniyeh said some 25,000 unemployed laborers would receive $100 each to mark May Day. The unemployed only receive occasional handouts.

Mahfouz said Hamas isn’t broke, just short of cash.

“We are having difficulties in getting the money in (to Gaza) because of the siege, and this will not last long,” Mahfouz said in comments posted on Gaza’s Finance Ministry’s website. “The government has its own reserves, and it can make them available, but it needs a way of getting them.” Bank transfers are not an option, said Jihad Al-Wazir, head of the West Bank-based Palestine Monetary Authority, which regulates the banking system in the West Bank and Gaza.