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Budget heads to Knesset plenum as coalition compromises reached
The biennial state budget is heading to the full Knesset plenum after a series of compromises.
The key breakthrough came as Haredi (ultra-Orthodox) parties agreed to allow the budget to pass before a law delaying the military draft for Haredi youths. Originally, Shas and United Torah Judaism had demanded that the new military-draft law pass through all of its Knesset stages prior to budget.
However, a compromise was reached on Sunday where the military-draft bill will be presented and receive first reading before the budget, with the other stages taken afterwards. Prime Minister Benjamin Netanyahu, Finance Minister Moshe Kahlon (Kulanu), Education Minister Naftali Bennett (Jewish Home) and Development of the Negev and Galilee Minister Arye Deri (Shas) signed a joint letter committing to pass the law-change before 25 November.
Separately, the Knesset Joint Committee on the Defence Budget voted 8-4 in favour of the defence portion of the budget. The defence budget includes special restructuring funds to allow the IDF to substantially reduce the size of its non-combat staff.
Earlier yesterday, Education Minister Naftali Bennett (Jewish Home) threatened to oppose the budget unless a cut of NIS 200 million to the special education budget was reversed. Shas leader Arye Deri made a similar threat unless he received assurances about reducing VAT on basic goods and services. The VAT cut was approved by the Cabinet over the objection of the Finance Ministry.
Many of these additional spending commitments will be funded by a 0.7 per cent across-the-board cut to all budgets. The budget will now be debated in the Knesset this week.
The budget debate will clash with an annual memorial ceremony for Israel’s first prime minister, David Ben-Gurion, on Wednesday. Opposition leader Isaac Herzog asked Prime Minister Benjamin Netanyahu to pause the Knesset debate to prevent the clash.