A cabinet meeting regarding the state budget convened this morning (Thursday) at the Prime Minister’s Office in Jerusalem. During the meeting, the Prime Minister and the ministers are also expected to discuss the approval of the Settlements Law. The sit-in is expected to continue into the night and into tomorrow morning.
Towards the budget: an agreement was reached on a multi-year plan for the defense system and the IDF
During the meeting, the Minister of Economy Nir Barkat He referred to the economists’ warnings about the impact of the legal reform on Israel’s economy and said: “I meet with the high-tech people and they are very worried, we support the legal reform, but there are risks. They are anxious.” He added that “when you sit down to negotiate between the parties, you have to understand that there is responsibility at the end, and even if we don’t get all our lust in our hands – it’s not bad.”
Barkat also said at the meeting that senior businessmen warned him: “You can shred the budget, you won’t have the money to implement it anyway. The Israeli economy is going to crash.”
Governor of the Bank of Israel Prof. Amir Yaron at the cabinet meeting (Photo: Alex Kolomoisky, Paul)
As you may recall, in the document delivered to the ministers today, the chief economist at the Ministry of Finance warned against the economic effects of the reform of the judicial system. “To the extent that the reform is perceived by the market as harming the return and independence of the state institutions and increasing the uncertainty in the investment environment, this may harm economic activity in the economy and in particular private investments,” she claimed.
Minister of Finance Bezalel Smotrich He said: “This requires us to do two things in our conduct – to bring a tight budget, and with regard to the reform, we take into account that it will develop in negative directions, therefore we have to be tough with the budget. I was not pleased, but we have to take these elements into account and bring a responsible and tight budget. To address everyone’s statements – for example not to offend the governor, convey a message of responsibility and not leave room for a sense of chaos.”
Benjamin Netanyahu and Bezalel Smotritz at the entrance to the cabinet meeting (Photo: Alex Kolomoisky, Paul)
For the first time since the establishment of the government: the ombudsman came to the yeshiva
For the first time since the formation of the government, the ombudsman, Gali Beharev Miara, arrived at the meeting – a few hours after it began. Earlier, during the meeting, Netanyahu referred to the absence of the ombudsman and his conflict of interest in the reform, saying: “An absurdity within an absurdity.”
At the beginning of the meeting, Prime Minister Netanyahu referred to the activities of the security forces in Nablus: “Yesterday, in a joint operation in Nablus, terrorists who were about to carry out further attacks against us were eliminated. I would like to praise the Shin Bet and the fighters who worked under fire. Whoever tries to hurt us will have blood on his head.”
“The government will discuss and approve the budget for 2023 2024 today,” Netanyahu said. “With security, an agreement was reached on a multi-year plan for the security system and the IDF. The program gives change and a proper economic reward and will shorten the time of entry to work for soldiers. In internal security, we are adding thousands of police officers to the Israel Police, establishing a national guard, adding measures to the police and thus returning governance to the state.”
Benjamin Netanyahu at the cabinet meeting (photo: Alex Kolomoisky, Paul)
He also said of the Ministry of Transportation that “In transportation, we are creating a transportation revolution. We will allocate huge sums to a high-speed rail system across the entire country. We are presenting an idea that will finally eliminate the periphery in Israel. It will take a few years, but it is something that will change the face of the country.”
His words about the Ministry of Transportation come after the words of Minister Miri Regev, who said before entering the meeting that “we have very large gaps between us and the Treasury, but the Prime Minister tried to intervene. We cannot damage the infrastructure, we need to reduce distances from the periphery, I hope we will reach a budget agreement. In the end Of course, I believe that Netanyahu will intervene in the matter. The issue of road congestion for the economy is huge, whoever wants to deal with the congestion, needs to budget for it.”
“We are taking significant steps to promote competition in the economy,” Netanyahu said. “We will educate the public sector through digitization in the government offices. In education, we will start with a free program from ages 0 to 3. We will also create the ‘Dimensions for Studies’ program.”
“I want to thank Finance Minister Bezalel Smotritz and the government teams for the cooperation of Hapoala,” he added. “There are those who are trying to undermine Israel’s economy, hysteria that has no grip on reality. The economy is strong thanks to the independence of the Bank of Israel, and through our measures. I tell you that this is a responsible and comprehensive budget for the cost of living. This is thanks to the free market revolution we promoted in the past and thanks to the corona vaccines we brought.”
Netanyahu also said that “We anticipate a one percent deficit. In all my years I don’t remember anything like this, this is a good sign for things to come. Israel’s economy is one of the leaders in the world, and this budget will ensure the continuation of the trend.”
Government meeting (Photo: Yonatan Zindel Flash 90)
Earlier, Netanyahu commented on the security events of the last day: “We have a clear policy: to strike terror with force, and to deepen our roots in our country. In response to rocket fire into our territory, IDF warplanes attacked Hamas terror targets in the Gaza Strip this morning. Yesterday, in a joint operation by the IDF, the Shin Bet and the IDF, three terrorists were thwarted in the Kasbah in Nablus, in addition to other terrorists who shot at our forces. These terrorists shot and killed the late fighter Ido Baruch, this happened last October and they were about to carry out more attacks against us .
“We always say that we will settle accounts with those who harm Israeli citizens and IDF soldiers – and that is what we did this time as well. I would like to praise the Shin Bet and Amn for the accurate intelligence and the fighters who acted bravely and calmly under fire. We will continue to act powerfully in all sectors, near and far, to thwart the efforts of our enemies to harm us. Whoever tries to hurt us – blood on his head.”
Benjamin Netanyahu and Yariv Levin (Photo: Alex Kolomoisky, Paul)
Before passing the budget at the yeshiva, Tourism Minister Haim Katz met with Prime Minister Benjamin Netanyahu and presented him with the tourism forecast for the coming year and the years to come. Officials present at the meeting said that unlike the Treasury, Netanyahu expressed a willingness to protect tourism. If the VAT exemption for tourists is canceled, Katz is expected to vote against the budget.
At the same time, Minister of Education and Member of Knesset Yoav Kish announced that he would oppose the decision at the cabinet meeting to damage the higher education fund for female soldiers and veterans who study in the periphery. Kish will support the promotion of a move within the framework of which there will be an increase in the aid fund on socio-economic grounds.
The minister said that “we will not right an injustice with an injustice. The higher education institutions in the periphery need the support fund and any attempt to distribute the resource differently – will seriously harm them. I will oppose the government’s decision on the issue.”