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Without a state budget, Israel may have to slash spending in January

Follow Dec. 20, 2020 Ministries will be forced to cut their budgets in January by about a quarter of planned levels – a total of 10 billion shekels ($3.1 billion) – bringing many government activities to a standstill, an analysis by the Finance Ministry’s accountant general has found. Behind the big spending cut, which will in particular hit state-supported nonprofit organizations and ultra-Orthodox educational institutions, is the political chaos that Prime Minister Benjamin Netanyahu and Finance Minister Yisrael Katz have created by refusing to pass state budgets for this year or next, as part of their political war with Benny Gantz’s Kahol Lavan party.

Accountant general warns of sweeping cutbacks to ministries if budget not passed

Accountant General Yali Rothenberg. (Courtesy, Finance Ministry) The Finance Ministry’s chief accountant warned government ministries Wednesday that if a state budget is not passed or compensatory adjustments made to law, across-the-board cutbacks will be necessary, from the beginning of next year, Hebrew media reported. In a letter to the ministry’s directors-general, Accountant General Yali Rothenberg wrote that there will be no choice but to “carry out restraint measures and tighten the guidelines regarding the approval of expenditures in government ministries.” Cutbacks at larger ministries, such as the defense, education, welfare and health ministries, are expected to amount to hundreds of millions of shekels, according to the Ynet website, while Channel 12 news estimated that the cuts could amount to as much as 25 percent of ministries’ existing budgets.

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