The state budget for 2021 will likely be passed in February, Prime Minister Benjamin Netanyahu said on Saturday.
Israel's economy has been hit hard by the COVID-19 pandemic and is expected to contract in 2020 for the first time in nearly two decades, with unemployment now above 11%.
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"The government will present the 2020 budget soon," Netanyahu said at a news conference. "This will get us through this year and will give us breathing space to pass the 2021 budget. From what I understand from the finance minister, this should take us until February [to complete]," Netanyahu said.
Finance Minister Israel Katz also said the 2021 budget would be ratified by parliament in February. He added that the 2020 budget, which must be approved by the end of December, would be 411 billion shekels.
Bank of Israel Governor Amir Yaron has urged Netanyahu's cabinet to pass the 2021 budget as soon as possible to help the economy recover.
Under Israeli law, if a government is unable to pass the annual budget within 100 days of its formation the Knesset must dissolve and elections. The state budget should have been approved by August, but Likud and Blue and White agreed to postpone the vote so as to avoid snap elections.
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