Salary for teachers - cut with confidence:
Finance Minister Avigdor Lieberman will bring to the government's approval today (Thursday) a cut of billions of shekels in the government offices in order to finance the salary agreement with the teachers that was signed on October 19.
The most notable cuts are 1.3 billion shekels in the Ministry of Defense, about 250 million shekels in the Ministry of Internal Security and hundreds of millions in social services.
The Budget Division of the Ministry of Finance criticized the budgetary implications of the salary agreement with the teachers in light of the fact that 2023 will open without an approved budget: "The costs of the agreement will significantly weigh on the government's spending, and in particular in 2023 due to the proposed layout which abnormally advances the size of the agreed salaries so that the main part will already be applied In the first year of the agreement, the costs of the agreement with the Teachers' Union are higher in the proposed layout by approximately 4.4 billion shekels in aggregate over the years 2023-2026 compared to a standard layout - 17.2 billion shekels compared to 12.8 billion shekels.
Director General of the Ministry of Finance, Ram Belnikov and Head of the Budget Division Yogev Gerdos, photo: Oren Ben Hakon
"The costs derived from the teachers' agreement alone constitute approximately 31% of the permitted increase, which means that the agreement leads to a significant tightening of the budget. At the same time, we remind you that due to the dissolution of the Knesset without passing a budget for 2023, we are at the beginning of the continuation budget for 2023, in which the government's expenditures are restrained compared to the expenditures of the year Normal. Costs from the teachers' agreement alone for the year 2023 constitute over 50% of the increase allowed within the ongoing budget," said the department.
The budget department concludes: "In our opinion, there is a significant fiscal difficulty at this time in meeting the budgetary consequences of the agreement, and in particular in light of the proposed layout, signing an agreement with teachers and diverting sources to the extent necessary to finance its cost as required, is expected to allow the government ministries to operate properly and even harm core operations."
were we wrong
We will fix it!
If you found an error in the article, we would appreciate it if you shared it with us