This study addresses the legal nature of the state's right to its own funds. It does so by elucidating the nature of state funds, distinguishing between public funds and private funds, and subsequently explaining the nature of the state's right to its funds. Additionally, the study highlights the ramifications of considering the state's right to its funds as a property right. The study adopts a descriptive-analytical methodology, involving a review and comprehension of legal texts, comparative court rulings, and the opinions of jurists in relevant comparative legislations, whenever possible. The significance of the study lies in the fact that state funds are among the most important legal means enabling administration to achieve its goals, ultimately aiming to serve the public interest. Understanding the legal nature of state funds is essential for determining the obligations of those who possess such funds. The study has arrived at several conclusions, the most significant of which are as follows: There are two criteria for distinguishing between public and private funds in the law. The first criterion is the nature of the funds, where any funds that cannot be privately owned are considered public funds. The second criterion is allocation for public purposes. If funds are allocated for a public facility, they are deemed public funds. The nature of the state's right to its private funds is a genuine property right, granting the state ownership attributes and capacities (use, exploitation, disposal). However, the state's disposal of its private funds is not absolute; its actions are constrained by legally permissible transactions and the necessary limits to achieve the public interest. Given that state properties are considered significant assets for the Palestinian people. The study recommends a series of recommendations, the most important of which is the necessity of enacting a specific law for the collection and disbursement of public funds in accordance with Article 89 of the Palestinian Basic Law. It also recommends granting the legislative council the authority to manage public funds and requiring that such management be carried out through legislation. This is due to the sensitivity of this matter, as it impacts the foundations of the state and all generations within it. Any disruption in this regard can result in harm to the public interest. Keywords: Public State Property – Private State Property.