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Budget on ice: humiliation for Likud ministers and profit for the Netanyahu family - voila! Of money

2023-02-26T08:39:34.697Z


There were plenty of promises and reforms in the current budget, but there was almost no reference to the 'cost of living' issues. In fact, the main issue concerning the cost of living was the expenses for the Netanyahu family


The government approved the state budget and the Settlements Law for 2023-2024 (Walla system!)

A government meeting was supposed to take place today to further discuss the state budget, but in view of the panic that gripped Prime Minister Benjamin Netanyahu over the weekend, it was decided to approve the budget as early as last Friday at any cost.



This is a budget on ice.

The ministers approved a virtual budget without having the budget brochure in front of them.

For decades I have been covering, among other things, the world of finance and they have never voted on a budget where the financial sources are not closed at the end and the question marks exceed the exclamation marks.



Even before the budget was approved, it was decided, in view of the outspoken demands, that a horizontal budget cut of 3% of the ministries' budgets would be necessary.

This is the beginning of a right-wing government on the wrong foot.

The unmasking ball will take place on March 23, when the budget will be approved in the first reading in the Knesset.

Only then will we know exactly how much everyone received - and how.



The chance that the ultra-Orthodox parties will get what they were promised in the coalition negotiations is the same as the chance that Netanyahu will keep his promises to the voters that he will implement a free law for ages 0-3. The ultra-Orthodox are ultra-Orthodox and are beginning to realize that in practice they have been stung.

In view of the exaggerated demands, there will be no escape from a horizontal cut of 3%.

The right-wing government starts on the left foot (Photo: Government Press Office, Kobi Gideon)

The budget for 2023 will be NIS 484 billion and the Prime Minister boasted that the deficit will be only 1%.

Maybe it will happen and maybe not but what is certain, until half of 2023 the state is actually operating without a budget (but every month according to the relative part of 2022) so Poel should strive for the deficit for the entire year to be zero.



Netanyahu is in the race for a legislative binge that resumed this week, and he could not afford to take any risk that the budget would not be approved according to schedule, otherwise the government would fall.



But at the heart of the matter, what is missing in the budget is the lack of basic treatment of the cost of living issues.

Free education for ages 0-3 will be nothing but discounted education - and that too partially: from ages 2 and up it is not clear how it will be implemented and what the budgetary source is.

Bel Ntaa, this is a scam at its best - just to say that Bibi kept his election promise.



A 20% salary increase for IDF soldiers has disappeared with the exception of a bill on the subject (dimensions for studies) submitted by Minister Yoav Kish.

The opening of the import market to competition and the cancellation of the status of exclusive importers to lower prices have also disappeared from the Arrangements Law.

More in Walla!

KKL-Junk encourages climate studies through scholarships for young students

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Bezalel Samoritch and Itamar Ben Gvir.

One got a selfie with Bibi to strengthen the base, the other got a foothold in the Ministry of Defense (photo: photo processing, Flash 90 Yonatan Zindel)

An achievement for Laban Gabir and Smotrich, discriminatory for the Likud minister

So where did the war on the cost of living go?

Oh yes we found her!

Hiding in one of the crypts of the Finance Committee, which after an emergency hearing approved the operation of two fully funded dormitories for the Prime Minister and makeup and hairstyle arrangements for NIS 80,000 for his wife.



After "the cost of living problem" for the couple was resolved, the ministers turned to discuss a fateful issue: the future of the National Library.

The approval of the law will shorten the path to the removal of Shai Nitzan, the chairman of the board of directors who filed the indictments against Netanyahu.



The government devoted long minutes of discussion to this 'fatal' issue on the eve of Shabbat as if it were the Iranian nuclear issue, and as for the distribution funds, the Likud ministers lost money at the expense of the parties' budgets of Smotrich and Itamar Ben Gvir.



Netanyahu put pressure on them and they were forced to surrender or settle for partial additions. Only those with leverage in his government benefited.



Ben Gvir received an additional NIS 9 billion for the Ministry of National Security and NIS 2 billion for the Negev and Galilee Development Ministry.

Not by chance and to prove his achievements, Netanyahu intends to take a picture with him to promote the achievement in front of his base.

Where was Netanyahu on the eve of the election when he ran away from a photo opportunity with Ben Gabir like a fire?



Finance Minister Smotrich was the second beneficiary.

As Minister of Finance, he recorded an adequate achievement when he convinced Netanyahu not to breach the budget framework for the sake of Israel's economy.



This is a significant achievement since Avi Simhon, Netanyahu's economic advisor, suggested breaking the framework.

Semtorich understands that such a budget will be perceived as 'good' in the eyes of the international community, led by the credit rating companies.

How did the Minister of Tourism explain his absence from the budget approval meeting?

"As a priest I am prohibited from participating in the funeral" (Photo: Reuven Castro)

As mentioned, it is still not clear what will remain of a budget number when there is no book at all.

In the meantime, the leverage of the budget also allowed Semtorich to establish his status and powers as minister of the Ministry of Defense and in charge of the Civil Administration.



Yoav Galant barely swallowed the bitter pill and almost threw up.

A budget increase of 10 billion shekels that jumped the Defense Ministry's budget to a record of 68 billion shekels, and whitewashing the issue of the Chief of Staff's increases helped him overcome his nausea. And what about the Likud ministers?



Most of them claimed that they got what they deserved, but in practice half of their desire came out of their hands. For example, Sharet Transportation under the leadership of Regev was indeed able to pass the reform in public transportation, including reduced fares, but this will come at the expense of a cut in the level of service: fewer lines, fewer buses on each line. Despite this, Regev thanked Netanyahu warmly for (according to her) approving an



accidental train appointed to Eilat. And I ask What about the red line Ben Petah Tikva to Bat Yam? When will it be activated?.



And of course there is Minister of Tourism Haim Katz.

The latter did not bother to come to the cabinet meeting.

He is angry that at this stage he was not included in his demand to cancel the VAT section on tourist services. He explained his absence with the original reasoning that as a priest he is prevented from attending the funeral...

  • Of money

  • opinions

Tags

  • the state budget

  • Benjamin Netanyahu

  • Bezalel Smotrich

  • Itamar Ben Gabir

  • Cost of living

Source: walla

All business articles on 2023-02-26

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