חוק־יסוד: משק המדינה (תיקון מס' 10 והוראת שעה לשנת 2020) (תיקון מס' 5)Basic Law: State Economy (Amendment No. 10 and temporary provision for 2020) (Amendment No. 5) · automatic translation · suggest a correction

Official summary of the law (Knesset)

Section 3B of Basic Law: The State Economy deals with a situation in which the Budget Law has not been adopted before the beginning of the fiscal year, and establishes that in such a situation, the Government may spend each month an amount equal to one-twelfth of the previous annual budget, plus linkage to the consumer price index. The section also establishes the order of priorities in the use of the continuing budget. Following the outbreak of the coronavirus and the need to curb its spread, various restrictions were imposed on the economy and the public. These restrictions led to a deep economic crisis. In light of the severe health and economic crisis, extensive assistance to the economy was required. Since the Basic Law limits the possibility of spending funds in a situation where there is no approved budget, Basic Law: The State Economy (Amendment No. 10 and Temporary Provision for 2020) was enacted, establishing that until the end of 2020 or until the date of adoption of the Budget Law, whichever is earlier, government expenditure could be increased to deal with the coronavirus crisis, in accordance with an economic plan. In Basic Law: The State Economy (Amendment No. 10 and Temporary Provision 2020) (Amendment), an additional increase in government expenditure was approved, so that in 2020 the expenditure amounts were increased by approximately 14 billion NIS. In light of the rise in infection rates and the prolongation of the crisis, in Basic Law: The State Economy (Amendment No. 10 and Temporary Provision 2020) (Amendment No. 2), the amounts set in the temporary provision were increased by approximately 25.1 billion NIS. In order to finance the plan for paying one-time grants for additional economic support, anchored in the Economic Assistance Plan Bill (New Coronavirus – One-Time Grant) (Temporary Provision), 2020, the temporary provision in Basic Law: The State Economy (Amendment No. 10 and Temporary Provision 2020) (Amendment No. 3) was amended so that an additional amount of approximately 6.7 billion NIS could be spent in 2020, until the approval of the Budget Law for that year. In this amendment, an amount of 1.75 billion NIS was allocated to finance the preparation of the education system for activity in the 2021 school year in accordance with the restrictions applicable to dealing with the spread of the coronavirus, as well as an amount of 1 billion NIS to encourage employment through a work grant.

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