At nearly 4 am in the morning, the cabinet finally approved the 2015-2016 State budget by a large majority of 20 ministers in favor with just one abstention - Defense Minister Moshe Ya'alon. Because the discussions went on for so long, most ministers weren't actually present during the vote, but had gone home after leaving a note saying that they were voting in favor.
The 2015 budget totals NIS 329.5 billion, and the 2016 budget will total NIS 343.3 billion, meaning that the budget would have grown 7.2% in real terms between 2014 and 2016. The deficit target for 2015 and 2016 is 2.9% of GDP.
During the night agreements were reached with the Likud's Minister of Culture and Sport Miri Regev, and Minister of the Interior Silvan Shalom as well as Shas and Habayit Hayehudi ministers. Following an agreement with Minister of Education Naftali Bennett, the ministry will receive an additional NIS 4.9 billion: NIS 530 million for additional assistants in kindergartens and NIS 170 million for reducing the number of pupils in each class.
The agreement with Regev includes a major hike in the culture and sport budget for 2015 and 2016. NIS 309 million more for culture and NIS 127 million more for sport. "This agreement lets us realize my policies and make culture and sport accessible to outlying regions, the non-Jewish sector and the haredi sector," said Regev.
The Ministry of Health will receive an extra NIS 4.6 billion. NIS 500 million for mental health reform, NIS 200 million for support examinations in hospitals, NIS 120 million for building the hospital in Ashdod, NIS 100 million for shortening waiting lists, NIS 80 million for home hospitalization by health funds, NIS 100 million to strengthen emergency rooms, and NIS 50 million to shorten waiting lists for MRI scans.
The Ministry of Public Security will receive an extra NIS 200 million to strengthen personal security in the Arab sector and NIS 100 million for community police. The fire service will receive an extra NIS 60 million, with an extra NIS 40 million for the police in East Jerusalem.
The Ministry of Welfare will receive NIS 1.3 billion including NIS 580 million for a major hike in benefits for senior citizens living under the poverty line and NIS 160 million to combat domestic violence and families at risk. NIS 120 million will be allocated to upgrade treatment for populations on welfare, NIS 87 million to develop community services, NIS 36 million for treating people with autism, and NIS 30 million for developing services for the elderly.
Prime Minister Benjamin Netanyahu said, "As I promised, we passed the State budget early in the morning without opposition. This shows the cohesion of the coalition and the cohesion of the cabinet. This budget is balanced, responsible, and concerned about growth and takes steps to lower the cost of living. It is a good budget for the State of Israel."
Finance Minister Moshe Cahlon said, "As well as benefits and easing the cost of living and supply of homes for Israelis, we are promoting major reforms of the like not seen for many years in order to bring about major growth."
Published by Globes [online], Israel business news - www.globes-online.com - on August 6, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015