The Cabinet meeting convened this morning (Friday) at the Prime Minister’s Office for the second time, with the aim of voting on the state budget for 2023-2024. This, after the meeting on the budget, which was held during the night, ended without agreements. The members of the Knesset have started voting, but if no agreements are reached to pass the budget by Saturday, a legislative amendment will be required to postpone the budget.
After the night meeting: the government meeting on the budget was dispersed without agreements
Towards the budget: an agreement was reached on a multi-year plan for the defense system and the IDF
Minister of Tourism Haim Katz announced that he is not participating in the cabinet meeting, and if a vote is held he will not participate in it. “We look forward to the removal of the VAT section and a budget that will make it possible to implement a policy,” his office said. According to him, with the proposed budget, it is possible to close the office in 2023.
Earlier, the budget approved a multi-year plan for the security system and the IDF, within which issues related to mandatory service, the strengthening and arming of the Israel Defense Forces, the permanent service model, the salary of permanent personnel and pensions will be regulated.
As you may recall, in a document delivered yesterday to the ministers, 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.
To this, Finance Minister Bezalel Smotrich responded that “this requires us to do two things in our conduct – to bring in 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 the components have to be taken take these into account and bring a responsible and tight budget. We need to take into account everyone’s statements – for example not to offend the governor, convey a message of responsibility and leave no room for a sense of chaos.”