The government is expected to approve the grant program in the amount of NIS 6.5 billion on Sunday
Posted on Jul 25, 2020 by Ifi Reporter - Dan Bielski
The government is expected to approve the grant program on Sunday, the terms of which were changed after the harsh criticism leveled at the original plan immediately upon its publication, and the difficulties created in passing the grants to all citizens.
The scope of the plan that will be presented to the government tomorrow was increased by an additional NIS 500 million, to NIS 6.5 billion, after it was decided to double the benefits for the weaker populations that receive benefits from the National Insurance Institute. Thus, the plan is expected to increase the entire budget of the six aid schemes since the outbreak of the corona crisis to close to NIS 200 billion. The main change made is that the grants will not be distributed equally to all citizens of the state, but differentially.
Following the amendments made to the program, initiated by the Prime Minister's economic advisor, Prof. Avi Simhon, the grants will be awarded to citizens earning up to NIS 640,000 per year, according to reports submitted for 2019, according to this key: every citizen aged 18 and over June 18 to 30 this year) will receive NIS 750. Parents of children will receive an additional NIS 500 for each child up to the third child (inclusive).
In the case of divorced parents, the parent who receives the child allowance from the National Insurance for them will receive the money for the children and the other parent will receive only NIS 750 for himself.
Those who are entitled to a nursing benefit, a needy disabled benefit, an income support benefit, a monthly payment under the Alimony Law and a new needy immigrant benefit provided by the Ministry of Absorption will receive a double benefit.
Since the National Insurance Institute does not have details on citizens aged 18 and over who do not receive benefits and are not recognized by the National Insurance Institute, anyone who does not receive the grant will have to apply to the National Insurance Institute within a year and demand the grant. It should be noted that the grants will not be considered as income for the purpose of paying tax.
The plan will also be submitted tomorrow for approval by the Ministerial Committee for Legislation, and on Monday this week for Knesset approval, where it is expected to be passed by Wednesday in three readings.
However, amendments to the plan may still be required, especially the demand of the chairman of the finance committee, MK Moshe Gafni, to pay the allowance for each child in the family, up to the age of 18, even beyond the first three children.
It is estimated that the payment of the grants will begin next week, after the plan is approved in the three readings in the Knesset.
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