The Israeli government approved on Sunday an investment plan worth 86 million U.S. dollars to boost social and economic development in the annexed east Jerusalem area, according to an official statement.
According to the proposal, the money will be handed over to local authorities over the upcoming four years.
"This is the first time that a comprehensive socio-economic development plan will be formulated and implemented for eastern Jerusalem," the press office said.
The plan will aim to bring down violence through reducing gaps in infrastructure, employment, education and social welfare, as well as boosting law enforcement and security measures, said the statement.
According to the statement, violence in east Jerusalem neighborhoods is "deeply-linked" to the standard of living in the city.
The plan also intends to create more job opportunities for local people by setting up employment centers, and assisting small and medium-sized businesses. It will also invest in welfare services in the area.
As for security, authorities will bring more police in the streets, and install more cameras.
Israel annexed east Jerusalem neighborhoods following the 1967 Mideast War. There are more than 300,000 Palestinians living in the area. Jewish-Israeli neighborhoods in east Jerusalem are considered illegal settlements by the international community.
The status of east Jerusalem is one of the core differences between Israel and the Palestinian Authority.