Israeli central bank urges government to meet the impending budget deadline


Jerusalem — Bank of Israel urged the government to pass the state budget from 2021 to 2022 on Wednesday as the deadline that could determine the fate of the ruling coalition approaches, outlined by Finance Minister Avigdor Lieberman Admired the spending plan.

In the statement, he emphasized “the tremendous economic importance of approving the national budget at this time, given that the economy has been operating since early 2020 based on the provisional budget.”

Congress will vote for the spending package on Thursday night or early Friday. If it does not pass by November 14, the government will automatically collapse and call for new elections.

A long-term political stalemate means that the budget has not been ratified for more than three and a half years. Israel has been running in a proportionally distributed version of the 2019 budget since then, and what economists say is hampering growth.

A diverse coalition of political parties, launched in June and ending the 12-year rule of former Prime Minister Benjamin Netanyahu, has a very thin majority in parliament and has frequent internal ideological conflicts. Any secession can interfere with budget voting and open the door to more political turmoil.

Finance Minister Lieberman said earlier this week that he expected the budget to pass through.

The Bank of Israel praised the budget plan, saying it would not curb economic activity until the end of the COVID-19 crisis. In addition, it will not expand the structural deficit, which was “many before the crisis,” and may lead to a reduction in public debt burden.

Banks expect the two-year spending package and numerous reforms in the corresponding economic plans, such as the removal of import barriers and the rationalization of government regulations, to make the government more functional and the work plan partly a government policy and expectation. Actions to be taken. “

Stephen Share

Reuters

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