Israel's budget for 2021 and 2022 was approved in by the Knesset - Coalition guaranteed for 2 years

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by Ifi Reporter Category:Capital Market Nov 5, 2021

Israel has a budget for next year and 2022. The Knesset approved the Budget Law on second and third reading. Sixty-one MKs supported the budget law and fifty-nine opposed yesterday. Friday's vote for the 2022 budget 59 MK supported and 56 MK opposed. 

Thus, the possibility of overthrowing the government was avoided due to the failure to transfer the budget on time.
Knesset members from the coalition hugged at the end of the vote and some of them were photographed on their mobile phones.
This morning, the plenum will continue to vote on the other budget laws: the budget law for the year two thousand and twenty-two and the arrangements law. Earlier, two accompanying laws were approved and all reservations submitted by members of the opposition were rejected. Voting is expected to continue until tomorrow morning.

The Budget Framework Law, the Economic Efficiency Law, the 2021 budget, the Arrangements Law - and finally the 2022 budget. .

The 2022 budget was approved tonight by a majority of 59 MKs against 56 opponents, after the budget for the current year had already been approved. .
Important reforms that preceded it include raising the retirement age for women, something the Netanyahu government did not have the courage to promote (although it should be noted that raising the retirement age for both men and women may be inevitable in the near future due to the widening gap between the current retirement age and longer life expectancy).
The Metro Act, which may remove the country from the heaviest transport crisis among OECD countries. This is after years of neglect and focusing on solutions that encourage the use of private vehicles, such as interchanges and bridges, which in retrospect extended the time of standing in traffic jams and spent tens of billions of shekels a year.
The import reform, which intends to reduce the cost of living and the kosher reform, which will also reduce costs - something that had no political feasibility in the Netanyahu governments.
One of the big shortcomings of the Arrangements Act is the outlawing of agricultural reform. Although we have been promised that the reform will be promoted after the budget is approved, the question is whether the political situation will allow it.
The main goal of the reform, which was to allow the import of fruits, vegetables and eggs, came out of the Arrangements Law due to political impossibility, because coalition MKs from the coalition also joined one of the most powerful pressure groups in the country, and strongly opposed it. Therefore, in the meantime we will continue to pay dearly.
Another miss is the congestion tax, on the one hand, it was hard to believe it would remain in the Arrangements Act. On the other hand, the fact that it will only apply in 2025, when the government is likely to be replaced, puts it in danger of being abolished.
The import reform, which is admittedly very important for lowering the cost of living, will also make it easier for importers first and foremost. Will any reduction in costs also be passed on to the consumer? One can only hope so, but the concern is that just as the exchange rate differences between the shekel and the dollar have not translated into discounts on imported product prices, so too much of the profit as a result of simplifying import processes will remain with importers.
Moreover, the reform is of course one of the most relevant in light of the high cost of living in Israel, but a long list of products has been excluded from it, in fact it includes only a few percent of all cosmetics imported to Israel. Beyond that, the food-related part only went into effect in January 2023, with an option to extend it for another three months.
And yet, despite all its flaws. The bottom line of the budget is in line. "The country is back to normal," Lieberman said - and he was right. It is true that money is counted down the stairs, and the real test will be in the implementation of the reforms, but there will be no doubt: after years in which the state budget was hostage in one man's war for survival, sanity has returned to the economic system.
In other circumstances we would say "this is something too". In the strange circumstances of the Israeli economy, that's a lot.

"We have reached the most important moment since the formation of the government," Bennett clarified. "This is an important time for the stability of the state. After three and a half years of chaos, mismanagement and paralysis of systems, years in which the state was a tool in personal play, years of four elections - we listened to the voice of Israeli citizens. ".

"We hear that the Israeli government is transferring the tax money to Hamas. Where did it come from? Someone in which organization received permission to enter Gaza and he met someone from Hamas but the whole incident takes place during Netanyahu's tenure as prime minister. "Bibi, this is your business model, chaos. Without the people being divided, Bibi does not exist. Netanyahu's entire existence is divided. If there is unity, there is no Bibi."
After him, Netanyahu spoke, and responded to the attack. "Last night in Habima Square in Tel Aviv, thousands of Israelis, lovers of the people and the state gathered. There was an exciting moment - they waved up their lighted cell phones and sang 'We came to banish darkness.' On the eve of Rosh Chodesh Kislev, we came to banish darkness," he said. "Instead of being able to congratulate on the miracles, we get in this budget on the taxes. It has tough cuts."

 

 

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