חוק-יסוד: משק המדינה (תיקון מס' 13)Basic Law: Budget of the State (Amendment No. 13) · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Basic Law stipulates that the Government shall lay the budget bill before the Knesset no earlier than six months before the start of the fiscal year, except in situations where the circumstances specified in Section 36A(b) of Basic Law: The Knesset occurred (dissolution of the Knesset, formation of a new government, and holding of Knesset elections after the date for submitting the budget bill) and a budget law was not adopted before the start of the fiscal year. If such circumstances occurred, the Government may lay before the Knesset, together with the budget bill for that year, also a budget bill for the following fiscal year (even if the laying date is earlier than six months before the start of that fiscal year (hereinafter – the early budget bill)). In a year in which an early budget bill was laid, a special provision shall apply, according to which the budget law for that year shall establish an "adjustments budget", which shall serve the Government in dealing with scenarios affecting the state budget that were not known at the time the early budget bill was laid before the Knesset. According to the mechanism, close to the start of the budget year a forecast update shall be carried out. In a case where, following the forecast update, a difference arises between the expected deficit or expected expenditures and the updated forecasts, the adjustments budget shall be used to cover the difference. If this does not result in covering the said difference, the Government shall be required to lay before the Knesset Finance Committee a balancing plan to cover the difference, and subsequently its confirmation that the actions under the balancing plan have been carried out and that no deficit difference or expenditure difference remains, all within set timeframes. In a case where the Government did not bring such a balancing plan, or not all actions under the balancing plan were carried out, and a deficit difference or expenditure difference remains, the Government shall bring for the approval of the Knesset Finance Committee a plan to reduce government expenditure or to reduce expenditure items (respectively). If the Knesset Finance Committee does not approve the above, the expenditure amounts in the budget items in the budget law shall be reduced, equally, by the amount of the remaining deficit difference or expenditure difference, in order to cover the difference. Supplementary provisions to this Basic Law were established in the Fiscal Adjustments Law, 2023.

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