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The Israeli Ministry of Finance is preparing to present the proposed amendments to the general budget for the year 2024, as the government is expected to vote on them, after the vote was postponed last week. Due to disagreements between the Finance Ministry and Prime Minister Benjamin Netanyahu, who opposed the proposals.
The newspaper “Globus”, which specializes in the Israeli economy, indicates that among the main amendments are: submitting a proposal to raise the value-added tax rate, and canceling additional tax credit points for parents of children under the age of 3 years.
After negotiations that the newspaper described as long and arduous, a compromise was reached that included raising the value-added tax from 17% to 18% starting in 2025, with an increase in tax exemption points.
The newspaper attributed to officials in the Israeli Ministry of Finance that the cost of financing the war is expected to reach 85 billion shekels ($23 billion) in 2024, a number that is added to the financial challenges facing the country.
The amended draft budget indicates raising the ceiling ImpotenceThe fiscal year for the current year reached 6.5% of gross domestic productA decision that raised fears of great risks, according to experts.
At the stage before presenting the budget, the Ministry of Finance warned that maintaining the high level of government debt and not taking measures to reduce the structural deficit would negatively affect Israel’s economy and standard of living in the future.
The Ministry’s document indicates the importance of taking fundamental steps to reduce the financial damage resulting from the war on section And maintaining the credibility of the Israeli economy. These steps include reducing the structural deficit in 2024, taking medium-term measures to reduce the deficit, and returning the debt-to-GDP ratio to a downward path.
The newspaper notes that among the measures proposed in the draft budget: providing a fixed reduction of 3% in the budget base of government ministries, which may lead to a reduction in the number of government jobs in the coming period.
The government budget will also witness reductions in advertising, consultations, and training, as part of efforts to improve financial conditions and maintain economic stability.
