9 Feb 2010, 2008 hrs IST

AMMAN, Jordan – The head of the U.N. agency aiding Palestinian refugees is warning of a looming funding shortfall and appealing for another $100 million.

Filippo Grandi says the money is necessary for education, health and social services for 4.7 million Palestinian refugees scattered across Jordan, Syria, Lebanon, the West Bank and the Gaza Strip.

The agency's 2010 budget is $620 million, and it expects a shortfall of $140 million. The agency says $100 million is essential for basic services.

Most of the agency's funding comes from the U.S. and the European Union. Grandi says he will ask Arab governments to contribute more to the agency's operating budget.

Grandi spoke to reporters Tuesday after touring a refugee camp in Jordan.

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