On Thursday, September 5, the first meeting of the Finance Ministry’s leadership on the state budget was held, which was also attended by Prime Minister Benjamin Netanyahu.
At a meeting that lasted less than an hour, the prime minister was presented with the basic initial data and plans for finding the NIS 35 billion needed to keep the state budget deficit within the specified limits.
In particular, the Finance Ministry has downgraded its forecast for the growth rate of the Israeli economy compared to the June forecast. According to the new estimate, GDP in 2024 will grow by 1.1%, not 1.9%, and in 2025 – by 4.4%, not 4.6%.
Moreover, the forecast for 2025 is based on a scenario that assumes the end of military operations.
The exact dates for the promotion of the state budget were also indicated:
– Government approval by October 8
– Submission to the Knesset by November 15
– Final approval by December 31st
Although Bank of Israel Governor Professor Amir Yaron was present at the meeting, he was not given the right to vote. Netanyahu adjourned the meeting, saying he had another important meeting. It was agreed that another meeting would be held in the coming days, to be opened by the central bank governor.