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Budget deadline and government solution are near

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The battle over the budget officially begins on Sunday, when the Ministry of Finance presents the draft budget and economic arrangements bill to the Council of Ministers.

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Cabinet members will have to approve the budget by next Thursday, prior the Knesset’s summer recess begins. The Knesset Finance Committee will discuss the budget during the recess, and when the Knesset resumes work in October, it will have to approve the budget in three readings by November 4. It will be dissolved, and beforetime elections will be held.

This short schedule means there will be intense pressure to get things moving quickly. It is useful that the Chairman of the Finance Committee, Alex Kushner, is part of the party of Finance Minister Avigdor Lieberman, Yisrael Beytenu. But a lot of concessions will be needed by coalition members to avoid conflicts that could derail the plan.

Israel has not had a budget in more than three years, and the Economic Arrangements Law that has been put forward is perhaps the most driven and complicated document of its considerate ever put forward. With each state budget, a unused Economic Arrangements Act must be passed to incorporate government bills and necessary legislative amendments so that the government can fulfill its economic policy.

Several ministers have already begun to express their opposition. Health Minister Nitzan Horowitz said Tuesday that he would not support the budget if the Health Ministry did not receive additional funding. Transportation Minister Merav Michaeli disagrees with Lieberman about imposing a congestion tax on all cars entering Tel Aviv. Environmental Protection Minister Tamar Zandberg said she would not agree to a business licensing reform that would remove some powers from her department.

However, most coalition members are dedicated to ensuring the budget is passed. On Tuesday, Finance Minister Avigdor Liberman and Defense Minister Benny Gantz agreed that the Israeli defense establishment would receive NIS 58 billion in the next 2022 budget, an increase of NIS 7 billion over the previous budget. “The prime minister, finance minister and defense minister welcome the agreement and call on all ministers and ministries to reach an understanding as soon as conceivable in order to approve the state budget in an orderly manner in the government and the Knesset,” a statement said. Issued following agreement.

The agricultural reforms announced final week by Lieberman and Agriculture Minister Oded Forer are being contested on the streets, but are unlikely to be challenged at the political levels. Farmers are protesting the reforms, which would lower prices for fruits, vegetables and eggs and urge imports to boost competition, and fear the measures will destroy their livelihoods. Thousands of farmers and agricultural workers, Thursday morning, blocked roads and scattered agricultural products and eggs in protest.

Another controversial topic that remains in the upcoming budget is a wide plan to decrease excessive regulation and bureaucracy in government offices, which Lieberman says will preserve the economy between 7 and 8b. year; raising the retirement age for women from 62 to 65; A housing plan to convert tens of millions of square meters of unused office space into housing to create unused housing options; a plan to tax disposable plastic utensils and utensils; Massive transport infrastructure projects. It plans to boost the medical cannabis industry in Israel.

A set of reforms to the kashrut market, which would effectively end the Chief Rabbinate’s monopoly on the kashrut supervision industry, has already been excluded from the Economic Arrangements Act due to political considerations. It remains to be seen whether the other political hot potatoes will be removed as well.


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