Israel 2021 budget worth $129 billion to be presented to PM Monday

Israel’s Finance Ministry will present a long awaited 2021 state budget to Prime Minister Benjamin Netanyahu on Monday that will total 426 billion shekels ($128.5 billion), a ministry source said on Sunday.

The source told Reuters that the budget will include 40 to 50 reforms aimed at helping the economy recover from the coronavirus pandemic and does not include any tax increases.

Israeli media noted that the 2021 budget to be presented is only 15 billion shekels more than the unapproved 2020 budget and based on a growth estimate of as much as 5%, versus an expected contraction of up to 8% this year.

The Ynet news site quoted Finance Minister Israel Katz as saying he intends to bring the budget to the cabinet for approval by mid-December.

However, Israel’s leaders are locked in a political standoff over the budget, so it is unclear whether the budget will be approved.

Failure to approve a 2021 budget by March 31 would trigger a snap election, which would be Israel’s fourth in two years.