New state budget faces obstacles only 12 days before year's end
With adoption of NIS 1.2 billion cuts in state budget, the public will receive fewer health care, education and welfare services; West Bank residents and Haredim to be the main beneficiaries.
This is the second budget cut approved this week, as on Sunday the Knesset's Finance Committee also approved a NIS 2.1 billion cut from the 2016 budget.
But while the plan was to bring the new budget and the Economic Arrangements Law to the Knesset's approval on Wednesday, a new problem arose concerning a bill proposal to impose tax on residential property owners who have three or more apartments.
The controversial legislation, which is also being challenged at the High Court of Justice, is at the risk of being scrapped. This would result in the loss of hundreds of millions of shekels from the state coffers and necessitate further budget cuts.
Late Thursday night, members of the Knesset's Finance Committee were called for a discussion on considerable changes introduced by Finance Minister Moshe Kahlon to the third apartment tax legislation.
Opposition MKs demanded that the discussion be postponed so they could study the changes. Committee chairman MK Moshe Gafni also expressed his displeasure with the way Kahlon was trying to get the committee's approval on the controversial legislation, but held the discussion regardless.
The members of the opposition left the meeting at around 1am and it continued only in the presence of only coalition members until 5:30am.
The committee eventually approved the legislation, but its legal adviser Sagit Afik and the Knesset's legal adviser Eyal Yinon criticized the rushed way the bill was approved. Knesset Speaker Yuli Edelstein then asked MK Gafni to reconvene the committee and hold another discussion on the changes to the bill.
Gafni refused and the opposition MKs decided to petition the High Court of Justice against the problematic process of approval.
Where is the money going?
The NIS 1.2 billion budget cuts for 2017-2018 are the result of coalition agreements and other budgetary additions recently agreed upon, like the evacuation of Amona and keeping the old Israel Broadcasting Authority on air until the end of April 2017.The evacuation of Amona is going to be pricey. Providing assistance to the residents of Amona, building alternative public structures and handling security and the evacuees' move will cost the tax payer some NIS 150 million, according to estimates made by the Treasury.
The Treasury will make an immediate transfer of NIS 40 million to the Interior Ministry to be allocated to the Mateh Binyamin Regional Council for a one-time aid package for Amona's permanent residents and for the residents of the nine illegal structures due for demolition in the nearby Ofra settlement.
In addition, the Treasury will transfer an additional NIS 9 million by the end of the month meant to fund the construction of infrastructure and temporary public buildings.
The Defense Ministry, meanwhile, will allocate NIS 3.5 million to rent housing for the evacuated families for a month and a half interim period.
NIS 15 million will go to building and renovating public structures used to house the Amona residents in nearby settlements and tens of millions of shekels will be allocated to cover the costs of infrastructure, roads and security.
Meanwhile, keeping the Israel Broadcasting Authority on air until April 2017—and consequently postponing the launching of the new Israel Broadcasting Corporation will cost an additional NIS 160 million.
The rest of the funds, some NIS 1 billion, will go towards the ultra-Orthodox sector, as part of the ruling Likud party's coalition agreements with their Haredi partners in the government.
NIS 4 million over two years will be allocated to a community rabbis project; NIS 2 million will go to support organizations working to instate Hebrew law (aspects of the traditional Jewish law that are relevant to non-religious law); NIS 4 million to the Hebron local committee; NIS 12 million to yeshivas for Haredi youth who cut their ties from their family and community; NIS 4 million will go to rehabilitation for religious youth; NIS 14 million will be allocated to projects in religious councils; NIS 1 million will fund the commemoration of chief rabbis; NIS 6 million will go to create eruv for communities (a ritual enclosure that permits Jewish residents or visitors to carry certain objects outside their own homes on Shabbat and Yom Kippur); NIS 4 million to maintaining ties with the Jewish Disaspora; NIS 2 million to the Cave of the Patriarchs; NIS 1 million for Jewish cemeteries, and more.
