The postponement of the cabinet budget discussion until October has far-reaching consequences on the 2013 state budget, the deficit, and, most of all, on ministries’ budget planning.

If the 2013 budget is not approved by January 1, the scenario with the highest probability, the automatic mechanism of monthly budgets based on 1/12 of the 2012 budget will be triggered, until a new budget is passed by the Knesset. In practice, this means immense fiscal restraints. Under the fiscal rule approved by the government, the 2013 budget was supposed to be NIS 13 higher than the 2012 budget, but if no budget is approved, the increase will be postponed…Read More>>

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