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The
source told Reuters that the budget will include 40 to 50
reforms aimed at helping the economy recover from the
coronavirus pandemic and does not include any tax increases.
Israeli media noted that the 2021 budget to be presented is only
15 billion shekels more than the unapproved 2020 budget and
based on a growth estimate of as much as 5%, versus an expected
contraction of up to 8% this year.
The Ynet news site quoted Finance Minister Israel Katz as saying
he intends to bring the budget to the cabinet for approval by
mid-December.
However, Israel’s leaders are locked in a political standoff
over the budget, so it is unclear whether the budget will be
approved.
Failure to approve a 2021 budget by March 31 would trigger a
snap election, which would be Israel’s fourth in two years.
The political squabbling has also prevented the 2020 budget from
being approved. That must be approved by Dec. 23 or it could
trigger a new election.
Israel is still using a prorated version of the 2019 budget
approved in 2018.
Last week, Israel’s central bank urged the government to approve
a 2021 state budget as soon as possible to avoid further fiscal
restraint when the economy needs stimulus to weather the
coronavirus crisis.
Israel has approved a stimulus of more than 140 billion shekels
to help businesses and households cope with the effects of the
virus.
(Reporting by Steven Scheer; Editing by Raissa Kasolowsky)
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