The government on Sunday unanimously approved the framework for the 2017-18 state budget. The budget includes various improvements and changes over the last two-year state budget that its proponents say will ensure that spending remains within the limits of the funds available.
Under the framework, spending will be set for both years, but a reevaluation of spending will take place before 2018. If it appears that spending has gone beyond the appropriate limits for 2017, cuts will be made in the budget for 2018. The objective is to ensure that the budget is balanced over the two-year period.
“The two-year budget will enhance economic stability and improve the government’s ability to conduct business,” said Prime Minister Binyamin Netanyahu after the approval. “With the budget, ministries can get a better view of their outlays over two years, allowing them to more easily control expenses, lower taxes, and encourage reforms and competition. The Finance Minister and I have been working towards those goals, together with other members of the government, for the benefit of Israel’s economy and its citizens.”
The budget law providing the two-year framework is expected to be approved during the Knesset summer session. The actual budget, together with the Arrangements Law which provides for extra-budgetary outlays, will likely be voted on at the beginning of October, the Finance Ministry said.