Three years since the last budget Israeli government approved state budget for 2022-2021

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by Ifi Reporter Category:Capital Market Aug 2, 2021

Three years since the last budget was approved, the Israeli government approved this morning (Monday), after a white night of heated discussions, the state budget for the years 2022-2021 - and later it will have to approve it in the Knesset as well. In light of the narrow coalition, the government is facing a significant problem ahead of the Knesset vote on the budget in mid-November - and in order to obtain a majority it will have to reach various "deals".
The government discussed approving the budget from Sunday morning, went out for a break in the afternoon - and returned to discuss it around 20:00. Shortly after midnight, the ministers went for another break, and Prime Minister Naftali Bennett convened the coalition leaders in his office to reach final conclusions. Throughout the night, negotiations took place in separate rooms, and sometimes screams erupted from them. One of the ministers said that there were "delusional discussions. World wars. Lieberman was very kind, nice and did not perform badly at all, but his officials were just the opposite."
The main controversy surrounding the budget approval was the issue of the health budget, which Minister Nitzan Horowitz demanded to be given significant additions, and as part of the agreement that the Ministry of Health will now receive an additional two billion shekels, in addition to a fixed three billion shekels. The issue of reform in the agriculture industry was also in dispute between the Labor parties, Blue and White and Yisrael Beiteinu, but this was also included in the proposal that has now been approved unanimously.
During the discussions tonight, Health Minister Nitzan Horowitz insisted on increasing his ministry's budget, and attempts were made to mediate between him and the Treasury, which ultimately resulted in a compromise. This morning, the Ministry of Health announced its main points: rehabilitation of the mental health system, the drug basket will be NIS 600 million, allocation of six MRI devices to the periphery, an additional NIS 500 million for public hospitals, fixing all added standards during the corona crisis, and "immediate" shortening of interns' shifts In the periphery, as part of a multi-year program to shorten the shifts of all interns.
The budget additions Horowitz obtained for his office will focus, among other things, on the mental health system and the shortening of interns' shifts, which last 26 hours. According to the agreement, NIS 400 million will be transferred for the construction and renovation of mental health hospitals - many of which suffer from neglect and particularly poor conditions. It should be noted that Horowitz established the rehabilitation of the mental health system as one of the flags of his term in office, as stated against the background of severe and long-standing neglect of the system. One of the goals of the program is to reduce the burden on hospitals and transfer patients in the mental health system to community care, and in the first phase, about 400 patients will be transferred from mental health hospitals to community settings.
It was also agreed that the budget for the drug basket this year will be NIS 600 million - an increase of NIS 50 million compared to last year, when the budget was NIS 500 million at the base, and another designated increase of NIS 50 million. The Minister's Office announced that NIS 50 million will be directed to preventive medicine programs. Against the background of the shortage and the shortage of queues for MRI examinations, it has also been agreed to add six MRI devices in the periphery, and for the first time they will be operated at the health funds in patients, and not in hospitals.
Another achievement of Horowitz is the fixation of all the standards of nurses, nurses, doctors and temporary doctors given to the hospitals and health funds during the Corona period. These are about 600 standards for doctors and physicians, 1,550 standards for nurses and nurses and seven hundred standards for farm workers and managers. It was also decided that the Ministry of Health would immediately promote a shortening of interns' shifts. According to a statement from the Minister's Office, "the shifts of interns in the periphery will be shortened immediately, from 26 hours to 16 hours in the following departments: MLRD, boarding school, children, women, neurology and radiology." The status quo in Israel, so they will be entitled to basic services.
Prime Minister Naftali Bennett said this morning at a cabinet meeting: "Gentlemen, ladies, there is a budget in Israel. A budget of a government that cares. After three years of stagnation, Israel is back to work. I ask government members to understand the magnitude of the moment: after years of neglect, we bring This morning, the most daring, most competitive budget, the most helpful to the weaker sections and the most worried about the future of our children for years. "
He added: "We are building a metro in Gush Dan, entering competition in a variety of consumer and food products, and kosher, preventing the bankruptcy of retirees in Israel, increasing public medicine in Israel, giving administrative freedom to school principals, building homes for children with autism for the first time, and providing healthy nutrition for children. "Israel. The budget reflects concern for all Israeli citizens and does not serve any narrow sectoral interest."
Finance Minister Avigdor Lieberman said: "After more than three years in which the state ran without a budget, this morning, after lengthy discussions, we passed a responsible budget in the government alongside an unprecedented arrangements law and thus brought a huge line to the state's citizens.
“The reforms we have approved focus primarily on lowering the cost of living, we have invested huge budgets in infrastructure, transportation and real estate, and we have passed significant reforms that will lower barriers and reduce bureaucracy, making it easier for everyone in our day-to-day business, business or private. The path to approving the budget in the Knesset begins right now and together, while maintaining cooperation, we will pass it in 3 readings and ensure economic growth and governmental stability for the citizens of the State of Israel. "
The Ministry of Finance stated that the state budget for 2021 will be NIS 432.5 billion and in 2022 NIS 452.5 billion. In 2021 the deficit will be 6.8% and in 2022 3.9%.
It was also stated that the budget will include a horizontal plan for opening up the economy to imports and reducing the cost of living.
The retirement age for women will increase gradually, over 11 years, until the age of 65. The retirement age for women will increase gradually, over 11 years, until the age of 65 (4 months a year for three years and 3 months a year for another 8 years).
The agriculture reform, which provoked much controversy even before it was approved, includes, according to the Ministry of Finance, the opening of the agriculture industry to imports and beyond to direct support and investment in farmers. As part of the reform, tariffs on the egg and plant industries will be reduced, while adopting European regulation on plant protection.

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