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Could budget crisis lead to early election?

The ongoing lockdown and the continued coronavirus crisis has complicated the drafting of a new budget bill, and it is unclear how the Ministry of Finance could realistically meet the Dec. 23 deadline.

by  Yehuda Shlezinger , Ariel Kahana and Danielle Roth-Avneri
Published on  10-08-2020 10:19
Last modified: 10-08-2020 10:20
A guide to the perplexed: What happens if Netanyahu fails to form a government?Reuters/Heidi Levine

A general view shows the plenum during the swearing-in ceremony of the 20th Knesset | Photo: Reuters/Heidi Levine

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The approaching deadline of Dec. 23 for passing a state budget could create more instability for the fragile unity government between Blue and White and Likud in light of the ambiguous language of the law.

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The ongoing lockdown and the continued coronavirus crisis has complicated the drafting of a new budget bill, and it is unclear how the Ministry of Finance could realistically meet the deadline. Failure to pass a budget on time would automatically trigger an early election.

The government and the Knesset can theoretically approve the 2020 budget by that deadline and defer any decision on the 2021 budget until late March, but Blue and White have long insisted that both be approved simultaneously as this would cement the rotating premiership between Prime Minister Benjamin Netanyahu and Blue and White leader, Defense Minister Benny Gantz.

"This was one of the key provisions of the deal to create this government, and we cannot drag our feet," one Blue and White official told Israel Hayom.

Likud shot back, saying that "the prime minister has successfully passed more budgets than any other world leader; he is not overly concerned over Blue and White's shameful effort to help themselves in the polls."

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Tags: Blue and WhiteEconomyIsraelLikud

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