Minister of Finance against closure that will include fatal damage to businesses • Government approves cuts in executive pay and plan to expand safety net to economy • President and President of the Supreme Court also agreed to pay cuts
Takes a position: Finance Minister Israel Katz calls for restricting demonstrations against the Prime Minister in Balfour. "Minister Katz emphasized that clear enforcement rules must be established during the closure period, including on the issue of demonstrations," the Ministry of Finance said. Extensive compliance with quarantine provisions.
Also on the subject of prayers, clear rules must be set during this period of emergency. "
PM Netanyahu: "There may be no choice but to tighten the guidelines" // Photo: GPO
Katz made the remarks as part of the authority given to him to prepare a plan for the continued operation of the private business sector during the closure period, while fully adhering to the purple mark and preventing contagion.
Katz favors an approach of increased enforcement instead of closing places.
The plan will be presented to the Prime Minister and will be discussed soon in the Corona Cabinet.
Yesterday, the Minister of Finance held a first meeting on the formulation of the "Beating Heart" program, to which representatives of the Prime Minister's Office, the Governor of the Bank of Israel and the Minister of Economy, Amir Peretz, will also be invited.
"An important and helpful move"
Meanwhile, the government yesterday approved the plan to expand the economic safety net at a cost of NIS 10.5 billion.
The government also authorized the Minister of Finance to promote a memorandum of law regarding a reduction in the salaries of Knesset members, ministers and the prime minister, and an extension to other public sector officials whose salaries are 10% higher than the salaries of Knesset members.
The president of the Supreme Court and the president of the state wanted to add them to the outline of the wage cut.
Prime Minister Netanyahu said: "We must all bear the burden, and we as kosher must also stand together in one line behind the steps we will take and in the face of the reality that will still be difficult."
The Governor of the Bank of Israel, Prof. Amir Yaron, welcomed the program: "The assistance program is an important and beneficial move, which will help businesses succeed in closing and be prepared to increase their activities and employment after the disease subsides. The program presented today includes a new and important component: Employee Retention Grant ", Which aims to incentivize employers to maintain a high level of employment, even when the business's income is temporarily reduced. This will reduce the harm to workers' wages and economic activity - and at the same time reduce unemployment benefit payments."
Regarding the cost of the program, Prof. Yaron noted that so far "the actual costs of some of the programs approved so far - especially those in the field of business assistance - have been lower than budgeted. It is more important than ever to accompany the assistance programs "Productivity in the economy. A growing number of developed countries have already presented such plans, and others are formulating them these days. Such a plan will provide hope and a planning horizon for businesses, and will help drive the wheels of the economy and employment in the near future."
The expansion proposal was approved unanimously, and includes a series of moves, including lowering the threshold for harm to the business to receive a fixed expense grant to 25% (instead of 40%), providing advances at the expense of a fixed expense grant, a comprehensive employee retention plan and deferring unemployment benefits.
For the purpose of financing the said measures, as well as the expectation of an expansion of the eligible populations due to the restrictions imposed at this stage, the increase in government expenditure in 2020 by NIS 2.5 billion was approved.
According to the decision, during the months of September-October, the aid grant will be granted, starting with a 25% increase in the business owner's turnover relative to the corresponding period before the outbreak of the virus.
In addition, the extension of the relief was approved, if necessary, also in the months of November-December, in accordance with the conditions set.
In addition, an immediate advance will be transferred at the expense of the September-October grant, amounting to 50% of the fixed expenses grant for businesses that are expected to be affected by the closure.
The size of the down payment will be based on the amount of the grant paid in previous beats.
Advance applications will only be available during October 2020.
The new decision includes flexing eligibility for an employment incentive grant to help business owners who had to send their employees to the IDF in September, and a dealer will be entitled to a grant if his turnover does not exceed NIS 400 million and turnover fell by 25% or more, compared to the same period last year.
The amount of the grant is equal to a product of NIS 5,000 in the number of eligible employees, and the number of eligible employees depends on the degree of harm to the business.
The more the business is harmed, the greater the scope of eligibility.