Sheshinski and Steinitz 311 .
(photo credit: Marc Israel Sellem)
The cabinet on Sunday approved a 1 percent cut to the budgets of government
ministries to finance NIS 300 million worth of public transport
The Defense, Education, and Welfare and Social Services
ministries were the only ones spared the cut, which was approved by a vote of 19
to seven at the weekly cabinet meeting. The Israel Beiteinu faction voted
against the plan, as did Likud ministers Limor Livnat and Silvan
Under the plan, a total of NIS 150m. will be cut from the
ministries’ budgets for 2011 and 2012, and a further NIS 150m. will be cut from
the Transportation Ministry’s budget for intercity road development.
return, the price of monthly unlimited passes for bus and rail will drop by 10%,
as will the average cost of a journey within the outlying areas and from the
outlying areas to the cities.
The cabinet also voted to implement a
one-year freeze on tax cuts for the top 20% of income earners, to help finance a
decrease in the gasoline excise.
Finance Minister Yuval Steinitz was
instructed to check the possibility of postponing by one year the planned
decrease in the companies tax or of making an alternative change to the tax
regime to safeguard the budgetary balance.
The budgetary trade-off was
made to clear congestion on the roads and to assist people who rely the most on
public transportation, Prime Minister Binyamin Netanyahu said at the cabinet
JPOST VIDEOS THAT MIGHT INTEREST YOU:
“Who uses public transportation? Not the people in the top
decile,” he said. “Those people who use it are those without means and those who
want to, and can, use buses and trains.”
Steinitz said the decision to
exclude the education and welfare budgets was made out of social
Meanwhile, the Ministerial Committee for Legislation
approved a bill initiated by Steinitz to adopt the Sheshinski Committee’s
recommendations on oil and gas revenue, which would raise the state’s share of
gas and oil profits to 52%-62% from the current one-third.
Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>