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Government bill · 25th Knesset · published as law 25 December 2024

חוק הפחתת הגירעון והגבלת ההוצאה התקציבית (תיקון מס' 27), התשפ"ה-2024Law for Reducing the Deficit and Limiting Budget Expenditure (Amendment No. 27), 2024 · automatic translation · suggest a correction

Status: התקבלה בקריאה שלישית

Topics: State budget* · * from the Knesset's official law classification

Official summary of the law (Knesset)

It is proposed to raise the deficit ceiling for 2024 so that the total deficit rate will not exceed 7.7% of the gross national product (instead of a rate of 6.6%), and to increase the permitted government expenditure in 2024 by a rate of 17.8% of the total government expenditure for 2023 for the purpose of continuing to finance military needs, and by a rate of 4.3% for the purpose of continuing to finance civilian needs arising directly from the fighting.

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Hebrew original

מוצע להעלות את תקרת הגירעון לשנת 2024 כך ששיעור הגירעון הכולל לא יעלה על 7.7% מהתוצר הלאומי הגולמי (במקום שיעור של 6.6%), וכן להגדיל את ההוצאה הממשלתית המותרת בשנת 2024 בשיעור של 17.8% מסך ההוצאה הממשלתית לשנת 2023 לצורך המשך מימון הצרכים הצבאיים ובשיעור של 4.3% לצורך המשך מימון הצרכים האזרחיים הנובעים במישרין מהלחימה.

Readings

What was said in the plenum

The bill, which passed first reading and second and third readings, was intended to increase for the third time the deficit target and the budget spending limit for 2024 by approximately 33.2 billion NIS, due to the unavailability of part of the American aid funds, the continuation of the fighting including Operation Northern Arrows in Lebanon, and the rise in interest on the government debt. The plenum debate addressed only a small part of the content of the law itself, and most of the speeches revolved around other issues such as the hostages, coalition-opposition relations, the judicial overhaul, Minister Ben Gvir, a state commission of inquiry, and crime in Arab society.

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Hebrew original

הצעת החוק, שעברה קריאה ראשונה וקריאה שנייה ושלישית, נועדה להגדיל בפעם השלישית את יעד הגירעון ואת מגבלת ההוצאה התקציבית לשנת 2024 בכ-33.2 מיליארד שקלים, בשל אי-זמינות חלק מכספי הסיוע האמריקאי, התמשכות הלחימה כולל מבצע חיצי צפון בלבנון, ועליית הריבית על החוב הממשלתי. הדיון בפלנום עסק רק בחלקו הקטן בתוכן החוק עצמו, ורוב הנאומים נסבו על נושאים אחרים כגון החטופים, יחסי הקואליציה והאופוזיציה, ההפיכה המשפטית, השר בן גביר, ועדת חקירה ממלכתית והפשיעה בחברה הערבית.

Arguments for

  • The ongoing war and the security and civilian needs stemming from it, including Operation Northern Arrows, require increasing the spending and deficit framework to enable the continued operation of the Ministry of Defense and the rehabilitation of the home front.
    David Amsalem, Moshe Arbel (Shas), Moshe Gafni (United Torah Judaism)
  • The timing and pace of the implementation of American aid require increasing the budget framework as a temporary substitute for funds that will not be available this year.
    David Amsalem, Moshe Arbel (Shas)
  • The rise in interest on the government debt justifies a further increase of the spending framework.
    David Amsalem, Moshe Arbel (Shas)
  • This is a justified and relatively technical amendment, since the cost of the additional disputes raised by the opposition is much smaller than the total increase required to fund the war.
    Yitzhak Ze'ev Pindrus (United Torah Judaism)

Arguments against

  • The government continues to transfer large coalition and political funds (for example to settlements, and to the religious affairs and heritage ministries) alongside increasing the deficit, instead of directing them to reservists, to evacuees from the south and north, and to rehabilitation; had these been cancelled, a significant portion of the deficit increase could have been saved.
    Hamad Amar (Yisrael Beytenu), Aida Touma Sliman (Hadash–Ta'al), Vladimir Beliak (Yesh Atid), Yorai Lahav Hertzanu (Yesh Atid), Boaz Toporovsky (Yesh Atid), Avigdor Liberman (Yisrael Beytenu)
  • This is already the third or fourth time that the 2024 budget has been amended within the same year, demonstrating chaotic economic management and a lack of credibility and professionalism on the part of the Minister of Finance and the government.
    Merav Ben Ari (Yesh Atid), Yair Lapid (Yesh Atid), Vladimir Beliak (Yesh Atid), Avigdor Liberman (Yisrael Beytenu)
  • The exemption from conscription for Haredim costs the state about 30 billion shekels a year, an amount that could have significantly reduced the need to expand the deficit and benefited the defense and welfare budgets.
    Merav Michaeli (Labor), Avigdor Liberman (Yisrael Beytenu)
  • The government is imposing a growing tax burden on the public (raising VAT, freezing tax brackets and benefits) at the same time as expanding spending and the deficit, in a way that undermines the public trust needed for a sound economy.
    Yair Lapid (Yesh Atid), Vladimir Beliak (Yesh Atid), Avigdor Liberman (Yisrael Beytenu)
  • The name of the law is misleading, since in practice it increases the deficit rather than reducing it, while funds promised to certain groups (such as the Waqf committees) are being held up by the Treasury.
    Aida Touma Sliman (Hadash–Ta'al)
Who spoke (54)
MemberFactionReadingsSpeechesIn the final vote
David Amsalem—First reading2no record
Matan KahanaNational Unity oppositionFirst reading, Third reading2against
Ram Ben BarakYesh Atid oppositionFirst reading1against
Merav Ben AriYesh Atid oppositionFirst reading, Third reading3against
Youssef AtaunaHadash–Ta'al oppositionFirst reading, Third reading2against
Yoav SegalovitzYesh Atid oppositionFirst reading1against
Waleed TahaRa'am oppositionFirst reading, Third reading2against
Waleed AlhwashlaRa'am oppositionFirst reading, Third reading2against
Hamad AmarYisrael Beytenu oppositionFirst reading, Third reading2against
Yasir HujeiratRa'am oppositionFirst reading, Third reading2against
Naor ShiriYesh Atid oppositionFirst reading, Third reading2against
Elazar SternYesh Atid oppositionFirst reading, Third reading2against
Mickey LevyYesh Atid oppositionFirst reading, Third reading2against
Aida Touma SlimanHadash–Ta'al oppositionFirst reading, Third reading2against
Yaron LeviYesh Atid oppositionFirst reading1against
Ron KatzYesh Atid oppositionFirst reading1against
Simon DavidsonYesh Atid oppositionFirst reading1against
Iman Khatib YassinRa'am oppositionFirst reading, Third reading2against
Meirav CohenYesh Atid oppositionFirst reading1against
Ahmad TibiHadash–Ta'al oppositionFirst reading, Third reading2against
Yair LapidYesh Atid oppositionFirst reading, Third reading2against
Debbie BitonYesh Atid oppositionFirst reading1against
Tally GotlivLikud coalitionFirst reading1for
Idan RollYesh Atid oppositionFirst reading1against
Vladimir BeliakYesh Atid oppositionFirst reading, Third reading2against
Tatiana MazarskyYesh Atid oppositionFirst reading1against
Matti Sarfatti HarcaviYesh Atid oppositionFirst reading1against
Michal Miriam WoldigerReligious Zionism coalitionFirst reading1for
Naama LazimiLabor oppositionFirst reading, Third reading2against
Shelly Tal MeronYesh Atid oppositionFirst reading, Third reading2against
Yasmin FridmanYesh Atid oppositionFirst reading, Third reading2against
Yorai Lahav HertzanuYesh Atid oppositionFirst reading, Third reading2against
Boaz ToporovskyYesh Atid oppositionFirst reading1against
Avi MaozNoam coalitionFirst reading1no record
Oded ForerYisrael Beytenu oppositionFirst reading1against
Gilad KarivLabor oppositionFirst reading, Third reading2against
Michal Shir SegmanYesh Atid oppositionFirst reading, Third reading2against
Alon SchusterNational Unity oppositionFirst reading, Third reading2against
Orit Farkash HacohenNational Unity oppositionFirst reading1against
Merav MichaeliLabor oppositionFirst reading, Third reading2against
Chili TropperNational Unity oppositionFirst reading1against
Moshe TurpazYesh Atid oppositionFirst reading1against
Osher ShkalimLikud coalitionFirst reading1for
Tsega MelakuLikud coalitionFirst reading1for
Meir CohenYesh Atid oppositionFirst reading1against
Moshe ArbelShas coalitionFirst reading1for
Moshe GafniUnited Torah Judaism coalitionThird reading1no record
Yulia MalinovskyYisrael Beytenu oppositionThird reading1against
Efrat Rayten MaromLabor oppositionThird reading1against
Evgeny SovaYisrael Beytenu oppositionThird reading1against
Sharon NirYisrael Beytenu oppositionThird reading1against
Ayman OdehHadash–Ta'al oppositionThird reading1against
Avigdor LibermanYisrael Beytenu oppositionThird reading1against
Yitzhak Ze'ev PindrusUnited Torah Judaism coalitionThird reading1for

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. A very long debate: every speech was shortened to the same length before summarising. Transcripts of the sittings: 1, 2

Reservations, sections and other votes (17)

In order. Votes on reservations and individual sections are shown separately from the vote on the bill as a whole.

Source: bill page in the Knesset legislation database ↗

Law for Reducing the Deficit and Limiting Budget Expenditure (Amendment No. 27), 2024 · How the Knesset Votes