The Thursday cabinet meeting to discuss the 2015 state budget will not be held as scheduled.
The meeting is being postponed for the second time, and as of now, it is not clear when it will be held. September 18 and September 20 are possible dates, but it could be put off until after Rosh Hashanah (the Jewish New Year), or even after all the High Holy Days.
If the Ministry of Finance Budgets Division does not decide this week on a format for presenting the budget, the discussion will probably be delayed until after the holidays. Cabinet approval of the budget is already 6 weeks past the regular time for its approval.
The reason for the postponement is disagreement among Minister of Finance Yair Lapid, Prime Minister Benjamin Netanyahu, Minister of Defense Moshe Ya'alon, and Governor of the Bank of Israel Karnit Flug about the level of the budget deficit and the defense budget supplement, reflecting major differences in budget perspectives.
Netanyahu, who must decide the matter soon, has already made clear a number of times in public statements that he supports an increase in the defense budget, and Flug has clearly stated her position on the deficit. Netanyahu will have the final word.
A draft budget proposal is to be distributed to the ministers a week before the discussion, but at the moment, the disputes have prevented the preparation of the materials. It appears that at least two meetings will be necessary in order to approve the proposal. Given the fact that the holidays are in September-October this year, the government has little time to discuss the proposal.
Published by Globes [online], Israel business news - www.globes-online.com - on September 7, 2014
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