After the introduction of amendments which solidified the Knesset's oversight of the economic aid program, the Knesset's Finance Committee approved on Monday night for a second and third reading the amendment to a law allowing the state budget to be increased in 2020.
The amendments stipulate that changes in the economic plan at a rate of 15% or higher will require the approval of the Finance Committee.
In addition, a monthly report will be sent to the committee on how the program will be implemented.
The Chairman of the Provisional Finance Committee, MK Oded Forer said that "on the one hand, this is a very important step in our ability to have oversight over the program, and on the other we won't be stopping the legislation or government assistance."
After the Knesset introduced balancing and supervision clauses, the interim Finance Committee approved for a second and third reading the State Market Law bill.
The proposal claims that the lack of a regulated budget for 2020 limits the possibility of to spend money, both because of the budget ceiling and the monthly expenditure limit. Therefore, it proposed an order that states that, either until the end of the year or until a Budget Law is approved for 2020, it will be possible to increase government spending in order to deal with the coronavirus crisis, on the condition that the increase must only be used to finance the coping and the measures that must be taken immediately to do so.
The bill states that it aims to finance the economic plan presented by Prime Minister Benjamin Netanyahu and Finance Minister Moshe Kahlon about a week ago, which proposed a social security net and relief for households which amounted to approximately NIS 22 billion, payment of unemployment benefits, health and civil protection against the virus which amounted to about NIS 11 billion, assistance to businesses in the amount of NIS 41 billion, and an allocation of sums to stimulate the economy amounting to NIS 6 billion.
Treasury Director General Shai Babad explained to members of the committee that the amendment is only partly related to financing the economic plan, and that part of the distribution, out of NIS 90 billion reserved by law, NIS 40 billion is intended to repay the state's debt, and NIS 50 billion are intended as a supplement to the Budget Fundamentals Law, of which approximately NIS 34 billion were specified regarding the economic plan.
At the outset of the hearing, Babad referred to the Finance Committee's criticism that the law is presented without giving any details about the uses of the funds within it, stating that he promises to bring the agreement's details to the committee after it is submitted to the government.
The chairman of the committee and its members stated that this did not satisfy them and, after various reservations were raised by the Knesset members, the committee chair, Attorney Sagit Afik, expressed 3 amendmendts regarding the committee's oversight, in the spirit of the Knesset members' reservations.
The first amendment concerns matters of reporting and transparency and aims to ensure the details of the budget, including the additions, will be published in full on the Finance Ministry's website.
The second amendment states that once the plan is approved by the government, most likely on Tuesday, and after summing up the funds included in the economic aid plan, a monthly report will be forwarded to the Finance Committee on the spending and implementation of the plan.
The third amendment stipulates that any change of 15 percent or higher regarding the NIS 34 billion that the law allocates to finance spending in various areas of the government's economic aid program would require the approval of the Finance Committee.
It should be noted that the budget anchored within the law includes the grant of NIS 500, which Netanyahu previously declared, but the distribution mechanism of this budget still requires separate legislation. During the discussion, it was possible that it would reach the Knesset tonight.
In addition, Yisrael Beytenu MK Oded Forer announced a number of agreements reached during the talks with the Treasury that do not concern the law, saying "We concluded that there would be no lone soldiers who will remain without a budget now if they previously received one.
An agreement was reached between the Finance Ministry and the Finance and Medical Association Committee, which says that within a week, we must guarantee that the wages of medical staff and the employees around them, including the general staff, would in no way be harmed if they were to go into quarantine. We all see this need eye to eye."
Labor MK Itzik Shmuli also presented an agreement reached with the Finance Ministry, which states that the "350,000 disadvantaged senior citizens in the state of Israel, whom Netanyahu announced would be receiving a grant of NIS 500, will receive an addition to their grant, making the total grant worth NIS 950".