{"id":119119,"date":"2021-08-01T13:46:31","date_gmt":"2021-08-01T13:46:31","guid":{"rendered":"https:\/\/fin2me.com\/?p=119119"},"modified":"2021-08-01T13:46:31","modified_gmt":"2021-08-01T13:46:31","slug":"israeli-cabinet-starts-first-state-budget-debate-in-three-years","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/israeli-cabinet-starts-first-state-budget-debate-in-three-years\/","title":{"rendered":"Israeli cabinet starts first state budget debate in three years"},"content":{"rendered":"
JERUSALEM (Reuters) – Israeli cabinet ministers on Sunday began debate on the 2021-2022 state budget, more than three years after the government last approved a fiscal spending package.<\/p> Due to two years of political stalemate and four elections, Israel is using a pro-rated version of the 2019 state budget that was passed in March 2018. A new government led by Prime Minister Naftali Bennett, a former software entrepreneur, took office in mid-June and unseated Benjamin Netanyahu after 12 years in office.<\/p>\n Debate is expected to be long and a vote could come in the early hours of Monday. Finance Minister Avigdor Lieberman told reporters ahead of Sunday\u2019s cabinet meeting that he was confident the budget was a good one and ultimately would be approved.<\/p>\n Parliament — in which Bennett has a razor-thin majority — is expected to take its initial vote in early September with final approval for the 14-month budget slated for early November.<\/p>\n Israeli media have reported that ministers are seeking 14 billion shekels ($4.3 billion) of further spending.<\/p>\n \u201cEveryone is justified but there is not enough money for everyone. It\u2019s impossible to please everyone,\u201d Lieberman said.<\/p>\n Total fiscal spending, including extra funds to cope with the coronavirus pandemic and debt servicing, is expected at 605.9 billion shekels in 2021 and 560 billion shekels in 2022.<\/p>\n The budget deficit is projected at 6.8% of gross domestic product in 2021 and 3.9% in 2022, after hitting 11.6% in 2020.<\/p>\n Bennett told ministers the budget serves all Israelis and not interests of any specific sector — a reference to ultra-Orthodox parties not being a part of the current coalition — and aims to reduce bureaucracy and boost competition in a bid to lower living costs.<\/p>\n He said without the current coalition, Israel would be in the midst of a fifth election campaign. \u201cToday we bring the budget and prove that this is a government that deals with the public and not itself,\u201d he said.<\/p>\n Lieberman has come under fire by farmers for a planned reform of the agriculture sector — long protected by the government. Citing a doubling of fresh produce costs the past decade, Lieberman seeks more imports while the state will invest to make farmers more innovative and efficient.<\/p>\n \u201cIt\u2019s impossible to protect them and do nothing,\u201d he said.<\/p>\n ($1 = 3.2248 shekels) (This story refiles to edit headline)<\/p>\n