23 October 12 13:00–The Ministry of Finance today announced Minister of Finance Yuval Steinitz’s bill for a sovereign wealth fund for the government’s take on natural gas profits has been approved by the ministerial legislative committee. The bill’s approval follows the recommendations of the Sheshinski Committee and the committee set up by Prime Minister Benjamin Netanyahu, Steinitz, and Governor of the Bank of Israel Prof. Stanley Fischer to review the management of the state’s revenues from Israel’s natural resources.
National Economics Committee chairman Prof. Eugene Kandel chaired the committee. Its members included the Ministry of Finance’s budget director and accountant general, the deputy attorney general, and Fischer.
The committee’s recommendations are based on international experience with sovereign wealth funds. The guiding principle is to benefit future generations through long-term management of the profits. Each year, the current profits from the return on the fund’s investment will be allotted for socioeconomic and educational purposes, as determined by the government on the basis of the prime minister’s statement on the matter. If needed, the fund’s money will also help deal with unexpected events that could have a negative effect on the national economy, such as a war or earthquake…Read More>>