Government bill · 19th Knesset · published as law 31 December 2013
חוק התקציב לשנות הכספים 2013 ו-2014 (תיקון), התשע"ד-2013Budget Law for the Fiscal Years 2013 and 2014 (Amendment), 2013 · automatic translation · suggest a correction
Status: התקבלה בקריאה שלישית
Topics: State budget* · * from the Knesset's official law classification
What the sponsors propose
The bill seeks to amend the Budget Law for fiscal years 2013 and 2014, so that the total expenditure budget for 2014 would be reduced from 405,264,956 thousand NIS to 401,964,956 thousand NIS, and accordingly the distribution of the budget among the budget sections, areas of activity, and programs in the First Addendum to the Law would also be updated. According to the sponsors, the reduction includes decreasing the interest budget by 2 billion NIS and decreasing the reserve budget for complying with the expenditure limit by 1.3 billion NIS. According to the explanatory notes, the amendment is required following the decision to cancel the planned increase in income tax rates on individuals in 2014, and pursuant to Government Decision No. 1014 of 8 December 2013, in order to meet the deficit ceiling and maintain a responsible fiscal policy.
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Hebrew original
הצעת החוק מבקשת לתקן את חוק התקציב לשנות הכספים 2013 ו-2014, כך שתקציב ההוצאה הכולל לשנת 2014 יופחת מ-405,264,956 אלפי שקלים ל-401,964,956 אלפי שקלים, ובהתאם לכך יעודכנו גם חלוקת התקציב בין סעיפי התקציב, תחומי הפעולה והתכניות בתוספת הראשונה לחוק. לדברי המציעים, ההפחתה כוללת הקטנת תקציב הריבית בסכום של 2 מיליארד שקלים חדשים והקטנת תקציב הרזרבה לעמידה במגבלת ההוצאה בסכום של 1.3 מיליארד שקלים חדשים. לפי דברי ההסבר, התיקון נדרש בהמשך להחלטה לבטל את ההעלאה המתוכננת בשיעורי מס ההכנסה על יחידים בשנת 2014, ולפי החלטת ממשלה מס׳ 1014 מיום 8 בדצמבר 2013, לצורך עמידה בתקרת הגירעון ושמירה על מדיניות פיסקלית אחראית.
An automatic summary of the explanatory notes written by the bill's sponsors. These are their arguments, not an official Knesset summary. · The bill on the Knesset website
Readings
- 24 December 2013 · First reading · להעביר את הצעת החוק לוועדההצעת חוק התקציב לשנות הכספים 2013 ו-2014 (תיקון), התשע"ד-2013Bill on the Budget for the Fiscal Years 2013 and 2014 (Amendment), 2013autoBill passed first reading29 for · 16 against
- 30 December 2013 · Third reading · אישור החוקהצעת חוק התקציב לשנות הכספים 2013 ו-2014 (תיקון), התשע"ד-2013Bill on the Budget for the Fiscal Years 2013 and 2014 (Amendment), 2013autoLaw passed35 for · 18 against
What was said in the plenum
The bill concerns Amendment to the Budget Law for 2013–2014, which included canceling the income tax increase that was supposed to take effect on 1 January 2014, funding the cancellation through a reduction in the interest budget and ministries' reserves, and an additional reduction in the employer tax; the discussion revolved around whether the sudden discovery of budget surpluses justifies the way it was decided to benefit the public, and who actually benefits from the move. A large part of the discussion also addressed criticism of the way the budget and deficit were managed from the outset and of the manner in which the law was passed in the Finance Committee.
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Hebrew original
הצעת החוק עוסקת בתיקון חוק התקציב לשנים 2013–2014, שכלל ביטול העלאת מס ההכנסה שהייתה אמורה להיכנס לתוקף ב-1 בינואר 2014, מימון הביטול מהפחתת תקציב הריבית ורזרבות המשרדים, והפחתה נוספת במס המעסיקים; הדיון נסב סביב השאלה האם הגילוי הפתאומי של עודפים תקציביים מצדיק את הדרך שבה הוחלט להיטיב עם הציבור, ומי בפועל נהנה מהמהלך. חלק גדול מהדיון עסק גם בביקורת על אופן ניהול התקציב והגירעון מלכתחילה ועל אופן העברת החוק בוועדת הכספים.
Arguments for
- Canceling the income tax increase is good news for taxpayers, including low earners and the middle class, not only the wealthy.Nissan Slomiansky (Jewish Home)
- The surpluses discovered in the budget (locked-in profits, increased collection and a drop in interest rates) make it possible to fund the cancellation of the tax increase without harming public services.Nissan Slomiansky (Jewish Home)
- Including basic food products such as white cheese and cream under price controls is a correct and welcome step.Zehava Galon (Meretz)
Arguments against
- Cancelling the income tax increase mainly benefits high earners (upper deciles, those earning over 20,000-40,000 shekels), while those who earn little do not benefit from it at all, in contrast to a VAT reduction which would have benefited the entire population, particularly the poor.Zehava Galon (Meretz), Tamar Zandberg (Meretz), Isaac Herzog (Labor), Omer Barlev (Labor), Itzik Shmuli (Labor), Moshe Mizrahi (Labor), Moshe Gafni (United Torah Judaism), Uri Maklev (United Torah Judaism), Israel Eichler (United Torah Judaism)
- The government and the Treasury misled the Knesset and the public regarding the scope of the deficit in order to justify the cutback decrees and the increases in VAT and child allowances, and only months later was it revealed that there were unreported reserves and surpluses.Basel Ghattas (Balad), Zehava Galon (Meretz), Esawi Frej (Meretz), Tamar Zandberg (Meretz), Itzik Shmuli (Labor), Michal Biran (Labor), Nissim Zeev (Shas), Yitzhak Cohen (Shas), Moshe Gafni (United Torah Judaism), Uri Maklev (United Torah Judaism)
- It would have been correct to use the surpluses to cancel or reduce the harm already caused to weaker populations and the middle class (the VAT increase, the cut in child allowances, public transportation prices, housing prices) rather than grant additional benefits to high earners.Basel Ghattas (Balad), Zehava Galon (Meretz), Tamar Zandberg (Meretz), Omer Barlev (Labor), Yitzhak Cohen (Shas), Moshe Gafni (United Torah Judaism), Uri Maklev (United Torah Judaism), Israel Eichler (United Torah Judaism)
- Reducing public expenditure and changing the budget expenditure rule for 2015 will harm welfare, health, and education services, thereby deepening social inequality.Ilan Gilon (Meretz), Tamar Zandberg (Meretz), Isaac Herzog (Labor), Merav Michaeli (Labor), Itzik Shmuli (Labor), Nachman Shai (Labor), Michal Biran (Labor)
- The manner in which the law was passed in the Finance Committee was flawed in terms of procedure and deliberation, without proper public discussion and under pressure from the Treasury on committee members.Itzik Shmuli (Labor), Moshe Gafni (United Torah Judaism)
Who spoke (21)
| Member | Faction | Readings | Speeches | In the final vote |
|---|---|---|---|---|
| Yair Lapid | Yesh Atid coalition | First reading | 2 | for |
| Basel Ghattas | Balad opposition | First reading | 4 | no record |
| Nissan Slomiansky | Jewish Home coalition | Third reading | 11 | for |
| Zehava Galon | Meretz opposition | Third reading | 6 | against |
| Esawi Frej | Meretz opposition | Third reading | 2 | against |
| Ilan Gilon | Meretz opposition | Third reading | 3 | against |
| Tamar Zandberg | Meretz opposition | Third reading | 1 | against |
| Isaac Herzog | Labor opposition | Third reading | 1 | against |
| Merav Michaeli | Labor opposition | Third reading | 2 | against |
| Omer Barlev | Labor opposition | Third reading | 2 | against |
| Avishay Braverman | Labor opposition | Third reading | 2 | against |
| Itzik Shmuli | Labor opposition | Third reading | 5 | against |
| Nachman Shai | Labor opposition | Third reading | 1 | against |
| Moshe Mizrahi | Labor opposition | Third reading | 3 | against |
| Michal Biran | Labor opposition | Third reading | 1 | against |
| Nissim Zeev | Shas opposition | Third reading | 2 | against |
| Yitzhak Cohen | Shas opposition | Third reading | 4 | no record |
| Moshe Gafni | United Torah Judaism opposition | Third reading | 4 | against |
| Uri Maklev | United Torah Judaism opposition | Third reading | 2 | against |
| Israel Eichler | United Torah Judaism opposition | Third reading | 5 | for |
| Eitan Cabel | Labor opposition | Third reading | 4 | against |
An automatic summary of the plenum transcripts: the debate on the bill at every reading it was voted on. Arguments are given as the speakers made them; this is not an assessment. The list of speakers comes from the transcript, without a model. Transcripts of the sittings: 1, 2
Reservations, sections and other votes (4)
In order. Votes on reservations and individual sections are shown separately from the vote on the bill as a whole.
- 30 December 2013 · Second reading · הסתייגותהצעת חוק התקציב לשנות הכספים 2013 ו-2014 (תיקון), התשע"ד-2013Bill on the Budget for the Fiscal Years 2013 and 2014 (Amendment), 2013auto18 for · 35 againstVote on a reservation (amendment)
- 30 December 2013 · Not a legislative reading · הצעת ועדההצעת חוק התקציב לשנות הכספים 2013 ו-2014 (תיקון), התשע"ד-2013Bill on the Budget for the Fiscal Years 2013 and 2014 (Amendment), 2013auto36 for · 18 againstProcedural decision
- 30 December 2013 · Second reading · הסתייגותהצעת חוק התקציב לשנות הכספים 2013 ו-2014 (תיקון), התשע"ד-2013Bill on the Budget for the Fiscal Years 2013 and 2014 (Amendment), 2013auto16 for · 35 againstVote on a reservation (amendment)
- 30 December 2013 · Not a legislative reading · הצעת ועדההצעת חוק התקציב לשנות הכספים 2013 ו-2014 (תיקון), התשע"ד-2013Bill on the Budget for the Fiscal Years 2013 and 2014 (Amendment), 2013auto34 for · 17 againstProcedural decision