The Ministry of Finance building in Jerusalem.
Will Netanyahu manage to get the budget department and the Companies Authority out of it? (Photo: Reuven Castro)
During the negotiations that Netanyahu is holding with the parties in the coalition, the possibility of giving Bezalel Smotritz a reduced treasury ministry, without the budget department and in the hands of the government companies, two departments that not everyone knows what they do, but know their names, is being examined.
The idea of emptying the ministry of its sexiest departments, provoked outrage in the treasury corridors. Some argued there that transferring them to the prime minister's office would turn the country into a dictatorship, since they would disproportionately increase the power of the prime minister. He would be the one who would determine (for example) who would be appointed as directors in the government companies, in other words - would distribute desirable jobs, and would be the sole decider In the formulation of the economic plans - that is to say, he will sit alone on the "shiber", will distribute the large funds.
It is difficult to separate the issue from the question of support for Netanyahu: those who support him will certainly want his ability to lead to increase, those who oppose - perhaps would prefer a minister in the post, who would undermine the stability of the emerging coalition.
We will try to address the issue in a facet that is almost forgotten in the heat of the political debate, the professional facet.
Before we explain why the apocalyptic predictions about the end of democracy are exaggerated, let's understand what each of these two significant departments does:
the budget department is responsible for planning, formulating and allocating half a trillion shekels in the state budget, and for all economic reforms and economic legislation on behalf of the government.
The Government Companies Authority is responsible for the 70 companies that are fully or partially owned by the government, companies that manage hundreds of billions of shekels and also generate profits that are transferred to the state coffers.
Netanyahu and Smotrich.
More power to the Prime Minister in the management of economic policy (Photo: Photo processing, Reuven Castro)
attack from the flanks
The idea of removing the two wings from the treasury is not new, it has already been brought up several times and thrown away in a panic, but to a large extent it is very logical.
The American budget division, for example, is in the hands of the US president and he is the one who determines the economic policy of the administration alongside the finance minister.
In Israel, the proponents of the move add, the prime minister divides most of his time between two main issues: security and the economy. Because the budget division shapes the strategy the economic plan of the State of Israel, which he outlines in the Budget Law and the Settlements Law, the one who should lead the strategy is the Prime Minister, who has the overall view of the needs of all ministries, while the Minister of Finance may be biased to one side or the other.
Therefore, they explain, those who fear From the defunct Ministry of Treasury, wrong. The five divisions that will remain under the Minister of Finance are collectively larger in scope and strength than most other ministries in the government (except the Ministry of Defense and Education) and they include the
Accountant General 's Division
, who is responsible for the implementation of the budget, audits and supervises it and also the government tenders, many of which have a huge financial scope.
The
Capital Market, Insurance and Savings Division
, whose role is to supervise the financial entities, insurance companies, pension and provident funds, and regulates the financial system, has considerable power.
The department in charge of wages
and labor agreements regulates wages in the economy vis-à-vis the Histadrut and is larger than the Ministry for the Development of the Negev and the Galilee, Intelligence and Strategy.
The Chief Economist's Division, the
last of them, not in order of importance, is responsible for Israel's economic treaties with the world (again, very large sums of money are involved) and also for the revenue forecast for the economy, the labor market and the Tax Authority, which is also subordinate to the Ministry of Finance and responsible for collection.
Of all the departments of the Ministry of Finance, the budget department is considered the most desirable and the most well-publicized, and its people consider themselves a patrol of the Ministry of Finance, the one without which it has no existence.
The patrol is important, but it is not the be-all and end-all, because the battalions are ultimately the ones who do most of the work in the field.
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The way Smotrich will reply to Netanyahu will testify to his intentions regarding the Ministry of Finance (Photo: Reuven Castro)
Economically correct versus politically correct
Let's leave the stardust aside for a moment and talk about a proper manager.
The fact that the budget department, which decides on the distribution of the money, works closely with the IDF, which is supposed to guard it, is problematic. Separating the two will not only not harm the public purse, but will protect the public's money.
Because we all want to have long-term governance here, which will allow governmental continuity and putting plans into practice, it is desirable to give the Prime Minister more power and authority and not to distribute it to others. It is natural that every senior politician wants to gain as much power as possible. An excellent example is
Moshe Kahlon
, who was not content with the Ministry of Finance, but also attached to him the director of planning and Rami.
Is it politically correct?
Definitely.
Economically?
Not really.
It is doubtful that when Smotrich will have to decide whether to take the "cut treasure", he will be able to put his ego and political inclinations aside and look objectively at what Netanyahu is offering him: a lot of power and influence, and less noise, ringing and communication.
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Benjamin Netanyahu
Bezalel Smotrich
Ministry of Finance
The budget department
The Government Companies Authority