The government approved the state budget for 2015 tonight. All ministers supported the proposal, except for Environmental Protection Minister Amir Peretz.
The budget is 328 billion NIS. The real increase in the state budget between 2014 and 2015 will be 12.5 billion NIS.
This amount includes a one-time addition of NIS 4.3 billion for the Ministry of Defense to finance the reinforcement and development of measures required after Operation Protective Edge. The deficit target will be NIS 3.41 trillion of GDP.
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According to the Ministry of Finance announcement, the budget principles are based on an innovation-based economy and strengthening the working person.
Finance Minister Yair Lapid said: "The budget is intended to assist and strengthen the weaker sections and the middle class of the State of Israel. We are setting a social agenda with significant additions to education, welfare, health, and strengthening the personal security of citizens.".
""The approved budget is a responsible budget, which addresses the immediate needs of the Israeli economy, but does not forget to also build a long-term, growth-oriented economic policy.".
Director General of the Ministry of Finance, Yael Andorn: "Within the framework of the 2015 budget, we adhered to a number of principles, including preserving the economy's comparative advantages and maintaining budgetary responsibility, which will enable the economy to grow in the years to come. Maintaining the fiscal frameworks with increasingly smaller deficit targets is a condition for maintaining a positive and stable credit rating for the State of Israel.".
Budget Commissioner Amir Levy: "In a period of budgetary and security constraints, we managed to submit a balanced budget that maintains the fiscal frameworks. From 2016 onwards, we will return to a declining deficit and reduce the debt-to-GDP ratio. We have passed a number of structural changes to improve growth and productivity, including an executive authority for the Chief Scientist, the Angels Act, the establishment of an Urban Renewal Authority, and a reform of the JNF.".
In addition to the increase in the defense budget, the budget contains significant additions to social ministries. The economic plan significantly increases budgets in the areas of education, health, welfare, and personal security.
The Ministry of Health will receive an additional NIS 2.8 billion, including, among other things, NIS 350 million to shorten waiting times in the hospitalization system, NIS 250 million for the health funds' budget base and strengthening their financial stability and securing the health system's resources in the long term.
It was also agreed to transfer NIS 100 million to the Ministry of Health budget for the purpose of reducing health gaps for sectors suffering from social and health disparities.
The Ministry of Education will receive an additional NIS 1.8 billion, including, among other things: NIS 350 million for the extension of the school year in formal education for grades 1-4, approximately NIS 375 million for the continued deployment of the "Oz La Tmura" reform, NIS 215 million for the "Meaningful Learning" program, and NIS 110 million for the nutritional security program.
Additionally, additions will be provided for the continued full implementation of free education for ages 3-4 in accordance with the recommendations of the Trachtenberg Committee and the continued implementation of the self-management plan to increase the budgetary and pedagogical autonomy of elementary school principals.
The Ministry of Public Security will receive an additional 1 billion NIS for the purpose of expanding the municipal policing system, deepening police involvement in the non-Jewish sector, strengthening the sense of security in areas where infiltrators are concentrated, establishing a unit to deal with nationalist crime, and more.
The welfare sector (including the supplement for Holocaust survivors) will receive an additional NIS 1.7 billion. Approximately NIS 1 billion in benefits for Holocaust survivors, with equal conditions between the groups, complete exemption from payment for medications and welfare and health services.
Approximately 100 million NIS for the legal regulation and expansion of welfare and health services provided to autistic people, increasing the income supplement allowance for the elderly with the aim of raising approximately 180,000 elderly people above the poverty line.
