It appears many of the cost-saving measures included in the state budget passed by the cabinet last week will disappear – a move that will be compelled to gain enough support to pass the budget in final Knesset readings.
 
Some of the more controversial decrees that may not be voted in include a NIS 50 tax on each day one is admitted to hospital; freezing monthly subsidy payments to Holocaust survivors, disabled residents and senior citizens; freezing budgets for bereaved families of fallen IDF soldiers and terror victims; cutting monthly child allowance payments by 10%; firing 1,050 career military personnel; cutting the healthcare budget and basket of approved pharmaceuticals; eliminating a tax credit for working women without children; the closure for daycare centers fro special needs children; the Handicapped Rehab Bureau will remain under the Finance Ministry and not move to Bituach Leumi; eliminating a tax break given to students; eliminating 50% of the income tax break given to disabled and blind residents. A planned NIS 515 million increase for higher education may also fall to the wayside in the final budget.

Some of the new decrees likely to remain in the 2009-2010 budget include the increase in the monthly cellular telephone tax to NIS 150 for people receiving cell phones from their employer; a NIS 20 fine for exceeding water usage limits; implementing a lottery earnings tax for prizes NIS 5,000 and over; a NIS 37/liter whiskey tax and a 40 agorot/liter beer tax; and a 30 agorot increase in gasoline tax.
 
Some of the questionable decrees that can go either way include a 10% decrease in monthly child allowance payments for the second-to-third child; implementing a VAT tax on fruits and vegetables; adding VAT tax to tourist industry including hotel stays and car rentals; reducing tax perks for seamline area residents; limiting cashing in on sick days accumulated by government employees upon their retirement; and taxing certain incentives received by career army personnel.

Sunday’s cabinet meeting and Tuesday’s special cabinet session dealing with the budget are expected to be stormy. Prime Minister Binyamin Netanyahu and Finance Minister Dr. Yuval Shteinitz appear to have underestimated the opposition to the widespread fiscal decrees.

(Yechiel Spira – YWN Israel)