Kahlon's biennial budget passes first Knesset reading
Knesset approves first reading by a 60-50 majority of a budget set to allocate 359.7 billion shekels for 2017 and will grow by 17 billion shekels the following year; Finance Minister: ‘Many people doubted but we see the results.
The budget consists of a total of NIS 359.7 billion for 2017 and will be increased to NIS 376.7 billion the following year. The biennial budget aims to keep the deficit no higher than 2.9% of total GDP.
In an unusual move, the opposition did not demand that the budget bill be voted on in sections, meaning it will be transferred to the Finance Committee in its complete form.
Normally, the opposition demands that the bill be transferred to the the Knesset’s House Committee so as to enable it to be voted on in sections rather than a single budget.
The coalition has said that the unusual behaviour was an embarrassment for the opposition which, it claimed, fell asleep and shortened the entire process of approving the budget for the government.
The opposition, by contrast, has attributed the aberrative conduct to strategic considerations arguing that it was the government that, in fact, wanted to vote on the bill in segments in order decrease the power vested in Finance Committee Chairman MK Moshe Gafni (United Torah Judaism), since they believe him to be too independent. The opposition claimed therefore, that in an effort to maintain Gafni’s grip, they decided not to make the usual demand. The Zionist Union has said that the move was coordinated by the opposition.
The reading was also unique given that part of it passed with an unprecedented majority of 91-17 when the Yesh Atid party opted to vote with the government for one section of the budget which facilitates greater transparency to the budget allocated to the Shin Bet, the Mossad and others.
“The opposition is the one that needs to fight to decrease the Arrangements Law (a government bill presented to the Knesset each year alongside the Budget Law) and not say that it is a good thing that everything is transferred to Gafni and that he will discuss it with the coalition. There has never been anything like this,” a coalition official complained.
For his part, Kahlon relished the opportunity to cite a number of past achievements and those forecast upon in implementation of the new budget.
“There are many who doubted, many who said and shouted that these were empty promises. Today, one year later, we see the results,” he delighted as he detailed the steps he had already taken, including a 50% increase for soldiers’ salaries, the dramatic reduction of public transport prices and provided income support benefits for seniors.
He also drew attention to the overall deficit last year as well as highlighting other accomplishments. “The deficit stands at 2.2 per cent, which was significantly lower than that which was intended. Growth stands at an average of 3.6 per cent. Friends, that is a strong economy,” he boasted from the podium.
Kahlon also addressed the new levy to be imposed on people owning more than three properties which the government approved back in August. “This is one of the most justified taxes. I believe in i,t and I want to clarify one thing: A situation has formed whereby some think that people with two apartments don’t pay taxes. That is not true. We will reinforce the enforcement system.”
Despite Kahlon’s optimism in the Knesset, he was shouted down on Monday while outlining the budget during a demonstration staged by the country’s northern authorities and heads of regional councils in protest of the fact that the new budget fails to include the financial blueprints for developing northern towns.
