The state budget will total NIS 264.7 billion in 2011, a real rise of NIS 8.7 billion over 2010, according to the biennial budget that Minister of Finance Yuval Steinitz submitted to the cabinet today.
The state budget will total NIS 271.7 billion in 2012, a real rise of NIS 7 billion over 2011.
As "Globes" reported on Thursday, the amount of the adjustment needed to meet the budget restriction and spending limits, otherwise known as budget cuts, is NIS 6.6 billion. The cuts are needed to adjust the budget to these two factors; the biennial budget will increase by 2.66% in each of the two years.
If planned spending causes the state budget to grow by more than this amount, a budget cut will be necessary. However, the budget plan also sets the budget deficit at 3% in 2011 and 2% in 2012; in other words, the difference between the planned spending and state revenue cannot exceed 3% of GDP in that year (2011).
Published by Globes [online], Israel business news - www.globes-online.com - on June 27, 2010
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