Israeli parliament gives 2021/22 budget preliminary nod

Two years of political stalemate and four elections had left Israel still using a pro-rated version of the 2019 state budget passed in March 2018. A refusal by Netanyahu last year to agree to a two-year budget for 2020 and 2021 helped bring down his coalition.


Reuters | Jerusalem | Updated: 03-09-2021 01:11 IST | Created: 03-09-2021 01:11 IST
Israeli parliament gives 2021/22 budget preliminary nod
  • Country:
  • Israel

Israel's parliament gave preliminary approval on Thursday to a 2021-2022 state budget, the country's first ratified spending package in more than three years. Lawmakers passed the 14-month budget bill in first reading, voting 59-54 on the 2021 budget and 59-53 for 2022, Israeli media reported. Votes for final approval are due in November.

The Knesset session was a fresh test for the cross-partisan coalition government of Naftali Bennett, who took over in mid-June after unseating veteran Prime Minister Benjamin Netanyahu. Bennett wields a razor-thin majority in parliament.

The budget earmarked 432.3 billion shekels ($134.85 billion) in 2021 spending and 452.5 billion shekels ($141.15 billion) for 2022 - including funds to fight the coronavirus pandemic. The budget deficit was projected at 6.8% of gross domestic product in 2021 and 3.9% in 2022, after hitting 11.6% in 2020.

Bennett and his finance minister Avigdor Lieberman had come under pressure from ministers and lawmakers upset at some planned reforms, while others sought higher funding. Two years of political stalemate and four elections had left Israel still using a pro-rated version of the 2019 state budget passed in March 2018.

A refusal by Netanyahu last year to agree to a two-year budget for 2020 and 2021 helped bring down his coalition. ($1 = 3.21 shekels)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Give Feedback