Finance minister orders state budget be drawn up by December

Finance Minister Israel Katz has ordered the Treasury to prepare the 2021 state budget for government approval in December.

The decision comes shortly after Keren Terner Eyal, a longtime aide to Katz, announced she was resigning.

Prime Minister Netanyahu’s Likud party, which Katz is a member of, and Defense Minister Benny Gantz’s Blue and White have been at loggerheads over the passage of a state budget.

In a last minute agreement to avert immediate elections, the Knesset passed legislation in August delaying the deadline to pass a budget until late-December.

Gantz is calling for the budget to cover all of 2021, while Netanyahu is insisting that it only be for this year, which would provide him another exit ramp to go to elections without having to handover the premiership to the Blue and White leader as part of their power-sharing deal.

Even if it is brought before the government in December, the budget is not expected to be approved by December 23 deadline.

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