Interior Ministry to allocate NIS 700m. for Jerusalem Municipality

Multi-year plan with PMO to be formulated to avert budget shortfalls, strikes.

February 26, 2017 16:33
1 minute read.
The Temple Mount

A view of the Mount of Olives and the Temple Mount. (photo credit: Courtesy)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

The Interior Ministry announced on Sunday that it will lead a government task force charged with formulating a budget increase of NIS 700 million for the Jerusalem Municipality amid its NIS 800m. shortfall for the 2017 fiscal year.

The team, to be overseen by the Prime Minister’s Office, will also formulate a special grant to ensure the municipality will no longer face severe annual budget deficits going forward.

Be the first to know - Join our Facebook page.

Significant shortfalls in 2016 and this year resulted in city-wide sanitation strikes in January of this year and last, called by defiant Jerusalem Mayor Nir Barkat, leaving the capital looking like a dystopian wasteland.

In both instances, Barkat blamed Finance Minister Moshe Kahlon, whom he claimed rescinded NIS 800m. in pledged annual aid for the municipality. Kahlon, in return, blamed Barkat for financial mismanagement and incompetence.

Prime Minister Benjamin Netanyahu ultimately stepped in to negotiate a solution, ending last month’s strike.

According to the Interior Ministry, Interior Minister Arye Deri will be presented with the final fiscal plan in the coming weeks.

“The supplementary budget is expected to address the coming year, and will be allocated to the city from the budgets of various government agencies and nongovernment offices,” the ministry said, adding that Kahlon agreed to the terms last week.

Citing the devastation following both sanitation strikes over the last two years, Deri vowed to devise a viable long-term strategy.

“The ministry will use all means at its disposal as a regulator to oversee the spending of the city’s budget,” he said. “Government grants transferred to the city each year will help the municipality to provide residents with the highest quality of services, while continuing to strengthen and develop the city of Jerusalem.”

Additionally, Barkat recently appealed to Kahlon, Deri and the Education Ministry to approve a NIS 1 billion loan for the construction of classrooms throughout the capital.

Related Content

July 18, 2018
Litzman, UTJ to remain in government, Councils of Torah Sages say