Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich will present today (Wednesday) the plan to deal with rising prices in the economy.
As first published in Israel Hayom, Prime Minister Netanyahu is working to freeze electricity rates.
According to estimates, the plan is expected to include some immediate measures that will come into effect even before the government passes the budget.
This is, among other things, the freezing of electricity, water and property tax rates and apparently the extension of the provision of increased credit points to working parents.
The goal is to create a "cooling effect" for the public, which is already collapsing under the burden of rising prices, and with the understanding that approving the budget will take time.
Also, when the state budget is approved, Netanyahu and Smotrich are expected to present another package of measures to address the cost of living, which will include various reforms, distribution of food stamps, and more.
A bit of public relief?
electric bill,
At this point, it seems that the electricity tariff freeze will be only partial.
Yesterday the Ministry of Finance published for public comment an order reducing the excise tax applicable to coal, which will result in a reduction of about 2% of the electricity tariff.
We will remind you that as of the first of January the electricity tariff increased by 8.2%, so that the signing of this order by the Minister of Finance will lead to the increase being moderated to about 6.2%.
According to the estimate of the manufacturers' association, the cost of the full "freeze" of the generators of inflation - electricity, water and property taxes, will amount to approximately three billion shekels.
Where will the money come from?
Since the economy currently runs without a budget, but on the basis of the ongoing budget, the Ministry of Finance had to be creative in order to find sources of funding for the program.
Most likely, the funding will come from not depositing provisions to a compensation fund in the next few beats.
This is a fund intended for compensation for war damages and more, to which the state allocates funds every year.
As of the end of 2021, the fund contained NIS 19 billion - when the one-time revenues for 2021 exceeded expectations and amounted to NIS 3.2 billion.
Former finance minister Lieberman acted in a similar manner last year when he lowered the price of fuel by a shekel and financed the move with the funds accumulated in the fund.
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