The Knesset will begin deliberations on the 2009 and 2010 state budget drafts this Thursday, the Finance Ministry said. The budget was approved by Israel's cabinet a month ago but could face changes during the process. One area of anticipated contest includes the ministry's proposal to impose a 16.5 percent value-added tax on fruits and vegetables.
The budgets need to pass three successive votes in the Knesset to become law. The ministry said it foresaw final passage by mid-July. The 2009 budget will amount to a record 316.5 billion shekels ($81 billion) with a deficit ceiling of 6 percent of gross domestic product. According to the draft, the deficit in 2010 will fall to 5.5 percent when the budget will total 321.5 billion shekels.