Cabinet slashes budgets to pay for 6 new ministries, including ‘alternate PM’
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Lapid: Government handed itself half a billion shekels today

Cabinet slashes budgets to pay for 6 new ministries, including ‘alternate PM’

Ministers green-light 1.5% budget reduction of all government offices, agree on ministerial panels, appoint 2 director-generals, and give backing to treasury’s employment plan

(From L-R) Defense Minister Benny Gantz, Prime Minister Benjamin Netanyahu and cabinet secretary Tzachi Braverman during a cabinet meeting at the Foreign Ministry on May 31, 2020. (Haim Zach/PMO)
(From L-R) Defense Minister Benny Gantz, Prime Minister Benjamin Netanyahu and cabinet secretary Tzachi Braverman during a cabinet meeting at the Foreign Ministry on May 31, 2020. (Haim Zach/PMO)

The cabinet on Sunday approved widespread fiscal reforms that will cut the budgets of most ministries in order to fund the establishment of six new ministries, including the office of the “alternate prime minister,” in a series of controversial decisions.

A unity coalition deal between Likud’s Benjamin Netanyahu and Blue and White’s Benny Gantz ended over a year of political deadlock when the most minister-rich government in Israel’s history was sworn in earlier this month. New ministerial positions were created to accommodate the cabinet’s 33 ministers, who number over a quarter of the Knesset’s 120 lawmakers.

The price tag for the overhead costs of the new government has been estimated as high as a billion shekels ($285 million) over its three-year span. There have been widespread accusations that the government is overlarge and costly at a time when the economy is being ravaged by the COVID-19 pandemic.

Among the new offices created Sunday was the Alternate Prime Minister’s Office, which will be held by Defense Minister Gantz for 18 months and then be transferred to Netanyahu as part of a power-sharing deal designed to allow him to keep the prime ministerial title even after vacating the post. Unlike other ministers, a prime minister can remain in his post even after he is indicted on criminal charges.

Other offices are Ze’ev Elkin’s Water Resources and Higher Education ministries; Orly Levy-Abekasis’s Ministry of Community Empowerment; David Amsalem’s Cyber Ministry; and Tzipi Hotovely and Tzachi Hanegbi’s Settlements Ministry.

Gantz — who is currently defense minister, in addition to the new post of alternate premier — is set to take over as prime minister in 18 months under the coalition deal, at which point Netanyahu will become alternate prime minister.

As the Alternate Prime Minister’s Office was approved, Netanyahu on Sunday denied reports that the alternate prime minister would also be granted an alternate prime minister’s residence. “It’s not true. It didn’t come up and it won’t,” he said.

Prime minister Benjamin Netanyahu (right) and Defense Minister Benny Gantz are seen at the Knesset, May 17, 2020. (ALEX KOLOMOISKY/POOL)

In order to create the new posts, ministers approved a government decision that will see a 1.5% cut to the budgets of all government offices, specifically at the upper personnel level. The move will slash 300 posts from the various offices to free up some NIS 100 million ($28.5 million).

Foreign Minister Gabi Ashkenazi opposed the budget cuts to foreign service, whereupon the cuts to his ministry were reduced from NIS 11.5 million ($3.2 million) to NIS 4.8 million ($1.3 million), the Walla news site reported.

Incoming Foreign Minister Gabi Ashkenazi, right, with his predecessor, incoming Finance Minister Israel Katz, at the Foreign Ministry in Jerusalem, May 18, 2020 (Foreign Ministry)

On the 22-item agenda, the cabinet was also voting on filling the Ministerial Committee for Legislation, led by Blue and White’s Avi Nissenkorn, and other ministerial panels; appointing directors general of the defense and economy ministries; and giving the green light to new Finance Minister Israel Katz’s program to encourage employment amid the pandemic.

In a Saturday night address, Katz presented his new Finance Ministry plan aimed at encouraging employers to take back employees placed on unpaid leave during the height of the pandemic in March. For every employee called back, places of business will receive a grant of NIS 7,500 ($2,141) starting on June 1, according to the plan. An additional grant of some NIS 3,500 ($1,000) will be handed out to employers for employees called back in May. Katz said some NIS 500 million ($142 million) have been allocated for businesses that would put employees back to work.

Economy Minister Amir Peretz opposed the treasury proposal during the meeting, arguing that it rewards employers who dropped their workers while harming those who kept their employees on the payroll even at a loss, according to the Globes business daily.

Katz retorted: “There is an alternate prime minister. There is no alternate finance minister. I am the finance minister and I will lead the implementation of the government decisions, which I proposed, and which were accepted by an overwhelming majority,” the Ynet news site reported.

Incoming Economy Minister Amir Peretz at a changeover ceremony in Jerusalem on May 18 2020. (Yonatan Sindel/Flash90)

Sunday’s cabinet meeting also saw Housing Minister Yaakov Litzman and Interior Minister Aryeh Deri receive building and planning powers that were previously under the treasury’s purview, while the Health Ministry was granted additional powers to combat the coronavirus.

The meeting on Sunday was held in the Foreign Ministry’s auditorium as the regular cabinet meeting rooms were not large enough to accommodate all the ministers while maintaining social distancing.

Opposition chairman Yair Lapid issued a statement blasting the government after ministers approved funding for the newly formed offices created by the Gantz-Netanyahu coalition deal.

“The government handed half a billion shekels to itself today. Not for the self-employed, not for the unemployed, not for small businesses, but for itself,” said Lapid.

Opposition leader Yair Lapid at the Knesset as the 35th government of Israel is presented on May 17, 2020. (Knesset/Adina Veldman)

“For redundant offices like the Water Resources Ministry, the nonexistent Community Empowerment Ministry and for deputy ministers that no one needs. Detached lawmakers, we’ve had enough of you.”

Separately, last Wednesday,  a bill allowing ministers to give up their positions as Knesset members in order to enable a different member of their party slate to take their spot in parliament passed its preliminary Knesset plenary reading. The so-called Norwegian Law — which still requires three more votes to become law — would allow any MK who is appointed to a cabinet post to resign temporarily from the Knesset, thereby permitting the next candidate on the party’s list to enter parliament in his or her stead.

The opposition has blasted the bill, and the coalition’s rush to pass it, as a way of pushing more people into sweetheart jobs on the taxpayers’ dime.

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