For the third year in a row, Israel’s government budget proposal will not be passed in the Knesset prior to the December 31 deadline. The proposal, which was approved by the government on December 24, lacks a sufficient number of Knesset members to support it. The Shas party is a major opponent of the proposed budget because of the drastic cuts in social welfare spending. Specifically, Shas, along with the United Torah Judaism Party, is against changes of the child-allowance laws, which provide monetary assistance for families with many children.
Since the budget will not be approved by midnight tonight, the new year will start with a temporary budget based on the 2001 budget frameworks. Ministries will be allocated funds in proportion to their share of the 2001 budget. In addition, the government will not be able to enter new contractual agreements until the new budget is approved. If the budget is not approved by March 31, 2002, then the government automatically falls and new elections are held.
Since the budget will not be approved by midnight tonight, the new year will start with a temporary budget based on the 2001 budget frameworks. Ministries will be allocated funds in proportion to their share of the 2001 budget. In addition, the government will not be able to enter new contractual agreements until the new budget is approved. If the budget is not approved by March 31, 2002, then the government automatically falls and new elections are held.