Coalition May Reach Compromise on One-Year Budget

YERUSHALAYIM -
Prime Minister Binyamin Netanyahu at an economic discussion with former Bank of Israel Governor Fisher, Bank of Israel Governor Prof. Yaron, PMO Acting Director General Peretz, Prof. Eckstein, Prof. Hefetz and others, on Tuesday. (PMO)

Coalition partners Likud and Blue and White may have reached a compromise on a state budget.

After two days of negotiations, it appears that the budget will cover one year, as opposed to the two-year budget stipulated in the coalition agreement. The most urgent issue is assistance for those whose livelihoods have been damaged by the coronavirus.

Both the accountant general and the head of the Finance Ministry’s Budgets Department think that at a time of global economic crisis and uncertainty, a one-year budget is a better option. Prime Minister Binyamin Netanyahu supports their position, whereas the Blue and White faction is concerned that Netanyahu will exploit the dispute and inability to pass a budget as grounds for a new election. This would effectively thwart Gantz’s chance of serving as prime minister in a rotation.

With the second wave of coronavirus taking its tolls throughout the country, both factions apparently realize that new elections is a nonstarter, and have been actively working toward a solution.

Prime Minister Netanyahu and Prime Minister-designate Benny Gantz were scheduled to meet on Tuesday afternoon to discuss the details.