Finance Minister Katz: If we don’t pass a one-year budget, we’ll go to elections

Despite the coalition agreement stating that the government will pass a two-year budget for 2020-2021, Finance Minister Israel Katz of Likud warns Blue and White that the coalition could break apart and new elections be held if the party refuses to agree to a one-year budget.

“The Treasury is working on a one-year budget. I spoke with opposition chairman Yair Lapid, and he believes the best budget is a one-year budget. If [Justice Minister Avi] Nissenkorn doesn’t change the one-year budget law until August 28, we’ll go to elections.”

Likud and Blue and White included in their coalition agreement a commitment “to pass, in an orderly manner, a biennial state budget for 2020 and 2021.” But citing the rise in coronavirus cases and the uncertainty surrounding the economy, lawmakers from Netanyahu’s bloc within the government have been touting a one-year budget for the rest of this calendar year.

This, Katz claims, would allow short-term measures to be put in place without limiting future options.