On Tuesday, June 18, the Ministry of Finance will begin discussing the draft state budget for 2025, which will differ significantly from the traditional procedure.

At the request of Finance Minister Bezalel Smotrich, instead of a process that usually takes up to two months, a marathon two-day meeting will be held.

The Chairman of the Bank of Israel, Professor Amir Yaron, who received an invitation to participate in the marathon, rejected it.

In addition, Smotrich ordered that, in contrast to the usual procedure in which the Ministry of Finance determines the procedure for managing the budget in each ministry, these powers should be transferred to the ministries themselves.

The Ministry of Finance and economic circles regard this as an attempt to limit the powers of the person responsible for the state budget in the Ministry of Finance.

It should be noted that this initiative of Smotrich was considered earlier. In particular, in an interview with Newsru.co.il in 2015, Finance Minister Moshe Kahlon said that “ministries should receive more freedom and not go to the Ministry of Finance for every issue.”

“Today, if a minister just wants to transfer budgets from one paragraph to another, within his own ministry, he cannot do this without the permission of the Ministry of Finance. Moreover, he does not go beyond the budget, he still must visit here. The logic of this is to to avoid abuse, so that budgets are not transferred to trips abroad, for example. But in the end it turns out that the Ministry of Finance dictates the order of priorities to the ministries. This problem can be solved, but in general, yes, you are right, and what I’m telling you is that you have little. The Minister of Finance will say that the ministries are largely deprived of powers and strength.”

By Editor

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