Knesset cuts budget by 1.8%
House decides to cut 2009 budget by NIS 8.5 million, bringing it to NIS 487 million, but savings will not go through to 2010 budget
The Knesset's budget for 2009 will see a 1.8% cut, bringing it to NIS 487 million (approx. $124.27 million), as apposed to NIS 496 million in 2008 ($126,571 million).
The somewhat paradoxical reason is the size of the government: Prime Minister Benjamin Netanyahu's government is the largest ever, with 38 ministers and deputies, but since the Knesset's budget is based on the number of MKs who do not serve as ministers or deputy ministers and their number has dropped to 82, the budget has decreased accordingly.
The Knesset's House and Finance committees discussed the budget bill on Monday. According to the Knesset's comptroller, however, the savings noted in the 2009 budget will not carry on to the House's 2010 budget, since its expenditures are expected to exceed those of 2008.
According to the proposed budget, while there is an overall drop of NIS 1.5 million in MKs' payroll expenses, security expenditures were up by NIS 1.2 million and car maintenance expenses increased by NIS 1.1 million.
According to the data presented to the committees, the major sections of the House's budget was divided as follows: Salaries – NIS 53 million, benefits – NIS 61 million, various lodging and rental expenditures for members of the House who leave outside Jerusalem – NIS 2.2 million; and office rentals – NIS 13.5 million.
A NIS 6 million increase was noted in the budget given to the MKs pension fund, which now stands at NIS 66 million. The fund will, however, be cut in 2010, to NIS 62.5 million. The budget allotted for retirement grants came to NIS 5 million.
The Knesset also plans to increase the funding given to Channel 99 – the Israeli equivalent to C-Span – to NIS 20 million in 2009 and NIS 21 million. The House also plans to spend NIS 2.75 million to relocate and upgrade Channel 99's studios.
The bulk of the Knesset's budget, however, is divided between administration expenditures (NIS 58 million), security (NIS 52.5 million), IT maintenance (NIS 17 million) and construction expenditures, which come to nearly NIS 30 million.
