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What’s happened: Israel’s coronavirus cabinet has approved more restrictions in an effort to slow the spread of infection.

• Yesterday, 3,269 new coronavirus cases were reported, with the infection rate standing at 3.3 per cent. Out of 449 hospitalised patients, 237 are in serious condition, with 48 on ventilators.
• The Health Ministry reported 21 people died from COVID-19 in the first three days of August, almost half of the number who died in the entire month of July.
• Following the cabinet meeting, the Prime Minister’s Office released a statement noting: “The Delta pandemic is much more infectious and is leaping ahead around the world … the prime minister and the coronavirus cabinet members appeal to the public to get inoculated as quickly as possible and to comply with the directives since the combination of the two will save lives and will avert more severe restrictions, including a lockdown, later.”
• Among the restrictions agreed upon:
  • Expansion of the ‘Green Badge’ plan to places in which there are gatherings of less than 100 people, for all ages.
  • It will be required to wear masks in open spaces in which there are gatherings of more than 100 people.
  • Government ministries will shift to a work footing of 50 per cent presence.
  • It is recommended that the private sector shift to working from home.
  • Vaccinated adults who care for minors under 12 who test positive will also be required to quarantine, even if they have been vaccinated.
  • There will also be further restrictions for entering and exiting the country, including a travel bad to and from ‘red’ countries.
• Earlier this week the cabinet approved the budget which includes an extra 2 billion shekels (£447 million) to the Health Ministry’s, in addition to its existing budget of 43 billion shekels (£9.6 billion).

Context: Throughout the coronavirus crisis, Israel has been operating without an approved budget. This is the first time a government has approved a budget since March 2018.

• Despite this, Finance Ministry officials have warned that the budget would be affected by any decision to impose a new lockdown, which would impact Israel’s economic recovery. They said that the weekly cost of quarantines was several hundreds of millions of shekels every week but that this was preferable to a lockdown, which costs several billions of shekels every week.
• In addition to the Health Ministry, the government also agreed to a significant increase to the defence budget. The defence budget has traditionally been a point of friction between the finance and defence ministries. However, on this occasion, Finance Minister Avigdor Lieberman (and Prime Minister Bennett) have previously served as defence minister and were receptive to the military’s demands.
• Other measures agreed in the new budget and arrangements bill include:
  • Gradually raising women’s retirement age to 65.
  • Removing the ultra-Orthodox monopoly on restaurant’s kosher certification.
  • Ending tariffs on import of fruit, vegetables, and eggs, with direct subsidies to be given to Israeli farmers.
  • Expanding the light rail in the Tel Aviv metropolitan area to Gush Dan.
• Although Finance Minister Lieberman promised not to raise direct taxes, there are several areas the government will seek to raise additional funds, including:
  • Imposing congestion charges for drivers entering Tel Aviv.
  • Raising taxes on disposable plates and cutlery.
  • Raising taxes on sugary soft drinks and sweets.
  • Increasing the price of electricity.

Looking ahead: At the current rate of infection, health ministry officials warn that there could be close to 500 seriously ill patients by the end of next week.

• The Health Ministry will push ahead with the rapid vaccination of the over 60s, but the impact of that vaccination drive will only become visible in the next two weeks. A third shot for over 40s is also being considered.
• The new school year is due to start on September 1. Both the Education Ministry and the Federation of Local Authorities have rejected the idea of postponing the start of the school year.
• Defence Minister Benny Gantz has said the public should prepare for another lockdown during the Jewish High Holidays (during September) if the daily coronavirus infection rate does not drop.
• The budget still needs to be passed in the Knesset, with the first reading of the bill scheduled for September 2. It will then go back to the Knesset’s Finance Committee before returning for the second and third reading.
• The government must pass the budget into law by November 4 or the Knesset will automatically disband, triggering a new election.