The cabinet today approved by a majority vote a proposal by Minister of Finance Yuval Steinitz to make the biennial budget permanent. The proposal includes a caveat: there will not be a biennial budget if elections are scheduled before the end of the first fiscal year, or if the finance minister, with the Knesset's approval decides that a one-year budget should be passed due to extraordinary economic circumstances.
The Netanyahu government has instituted two biennial budgets, for 2009-10 and for 2011-12, but has decided on a one-year budget for 2013, because it will be an election year.
The Ministry of Finance said, "The biennial budget enables the government to better operate, plan and implement its policies. Eliminating the need to plan an annual budget frees up time to deal thoroughly and in depth with other issues on the agenda."
Steinitz said, "Israel has become the first country to institute a biennial budget, except for election years. This is a revolutionary reform in the budget process, which has the strong support of the IMF and the OECD Secretary General Angel Gurria."
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2012
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