For Shas party leader Aryeh Deri, the arnona fund program is a deal-breaker and he has stated openly the future of the coalition rides on being accepted by the Finance Minister. According to the report in The Marker on Wednesday, 14 Kislev, Deri told Knesset Finance Committee Chairman MK Moshe Gafne the fund must be accepted or he will compel early elections. His statements were compelled by opposition to the fund, primarily from the Likud party.

Coalition Chair (Likud) MK David Bitan told Gafne he will not permit harming those authorities under Likud leadership, such as the Union of Local Authorities headed by Chaim Bibas.

According to The Marker business news correspondent Tzvi Zarhiya, today the state pays a reduced arnona rate for public buildings which back in the 1950s were classified as “cities absorbing aliyah”. While many of these cities are no longer actively accepting new immigrants, the low arnona property tax arrangement remains in place and the city pays as discounted rate.

It is explained that in line with the Economic Arrangements Law, the Finance Ministry proposes to establish a fund in the Interior Ministry aimed at reducing disparities between local authorities, in accordance with the criteria set out by the Ministers of Finance and Interior.

The Finance Ministry has informed the committee that in the coming years the fee will gradually be deducted from the local aitiwill be subtracted from the allocation amount incrementally authorities. Likud oppose it, and require local authorities not to harm their heads Likud. ”

(YWN – Israel Desk, Jerusalem)