Government reports NIS 51 billion spent on dealing with COVID-19
Israel is earning 10% less than it did in 2019 • the deficit now stands at NIS 137 b.
By HAGAY HACOHENIsraeli parliament members vote at the Finance committee, during a vote on the 2017-2018 state budget, at the Knesset, the israeli parliament in Jerusalem on December 19, 2016.(photo credit: YONATAN SINDEL/FLASH90)
Israel’s government reported an almost ten-fold increase (977.8%) in its “various expenses” category this year due to financial aid given to businesses and the self-employed during the COVID-19 crisis, according to a Finance Ministry report released Thursday.Describing how the country is being maintained without an approved budget, the report is a treasure trove of interesting details.The fight against COVID-19 was presented as a major reason behind the decision made by Blue and White to join Likud in forming a coalition government and is currently the one issue both parties agree to address together from both sides of the aisle. As the country doesn’t have a new budget with adjusted expenses to answer its current needs, it is limited to the previous 2019 budget approved two years ago.An additional NIS 84.8 billion was spent to address the pandemic, NIS 51.1b. of which was spent by various government offices. The total cost of all such offices since the beginning of the year is NIS 336.7b., a 20.1% increase over 2019.Interestingly, while COVID-19 is behind a 22.7% increase in the expenses of civic ministries, it has brought a 0.6% decline in the various expenses of the nation’s defense apparatus.The largest leaps were noted in financial ministries with a 4.9% increase when compared to last year as well as the administrative ministries, which reported a 2.1% increase. Social services ministries came last with a 1.9% increase.The Jewish state currently faces a deficit of NIS 137.1b. while reporting NIS 258.4b. in earnings, 10% less than it did in 2019, due to the COVID-19 induced financial crisis.In 2020, Israel earned only NIS 4b. from non-tax related revenue sources, less than a sixth of the NIS 25.4b. it earned in 2019.Israel spent just NIS 1.7b. out of the NIS 4.6b. earmarked to develop the economy during the slump. NIS 34.1b. were invested in social welfare programs out of the NIS 49.6b. that had been devoted to this issue. Regarding offering health solutions during COVID-19, the state nearly reached its limit, spending NIS 12.9b. out of NIS 15.4b.The man tasked with approving any additional budget expenses, Rony Hizkiyahu, left the job last week and is supposed to be replaced by Yaheli Rotenberg.Rotenberg was supposed to enter the role of accountant-general last week, but Blue and White refused to approve the decision citing other positions that are just as important and waiting to be filled.In a Thursday interview, Hizkiyahu explained that the political situation is so tangled up that it’s impossible to even sign a temporary letter appointing someone to his position until Rotenberg is officially appointed, The Marker reported.
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