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Prime Minister-elect will have to decide within five months where to cut 14 billion how to fix a watch shekels exceed the budget - whether to raise taxes, increase spending limit or combine both. "Calcalist" shows the burning issues ahead of the coalition negotiations
Here is the anticipated schedule: President Shimon Peres has up to one week from the date of publication of the results to determine who cast the task of forming a government. MK Authority which imposed a 28-day mission will be to form a government, how to fix a watch with the possibility of an extension of 14 days at most, that is, within about a month and a half will consist of government and the Knesset will be sworn. Then starts the real thriller: State budget approval process.
In April 2009, immediately after the last election, the Knesset approved an amendment that gives the government a new period of 107 days at most to approve the state budget is likely that this time will be a biennial budget (ie for 2013-2014). In other words, the state budget will be approved in three readings in the Knesset in mid-June at the latest.
By comparison, after the last election, held on 10 February how to fix a watch 2009, the state budget for 2009-2010 approved by the Knesset finalized only on July 15, five months after the election, which is the maximum amount of time available to the government under the law. It is very likely that the same will happen now.
Coalition agreements signed between the Likud and other coalition partners are expected to include major budget items commitments and substantial reforms, which will constitute the basis for the new state budget, as it was in 2009. Even then, when the economy struggling in a recession how to fix a watch that developed in the wake of the global crisis in late 2008 and unemployment threatened to rear its head, the state budget was approved job was not easy. One of the main items that appeared in any coalition agreements then was that "the parties will work together and support in the Knesset enactment of the Budget and Economic Arrangements Law". This section will also be included in the agreements to be signed now.
Immediate primary challenge with which the new government will have to face is the fiscal challenge when the composition of the coalition will be formulated how to fix a watch directly impact on the solution which the government adopts. Already exceed government spending by 14 billion over the maximum allowed by law, and will require raising taxes amounting to 5 billion in order to meet the deficit how to fix a watch target for 2013 (the deficit is the difference between government spending how to fix a watch declining income).
Since 1 January has already passed and no income tax increase takes place in the middle of the year, the only remaining option is to raise taxes on VAT and other taxes on consumption, like a tax on fuel and cigarettes, and try to end tax exemptions, such as the exemption from VAT on fruit and vegetables or a tax exemption for training funds.
If you choose a new government to follow through and cut the 14 billion shekels stepchildren, She would have to touch the heaviest budget items - defense, Social Security benefits, public sector wages and infrastructure how to fix a watch budgets, especially how to fix a watch in the transport sector. And what exactly the government will cut? Depending how to fix a watch on what factions will consist coalition.
Basic thing one needs to resonate with the public's mind at all times: Prime Minister Netanyahu decided to hold early elections because he could not pass the government cut of 14 billion before the election, after which he felt he could move it. Therefore, there is no reason to think such cuts, or similar, will not come.
Ministry of Finance has already signaled one target to cut - two billion children's allowances, in addition to cutting old age pensions how to fix a watch and other. Social Security spends annually about 20 billion on retirement pensions, about 10 billion on disability benefits, $ 7 billion on child benefit and another 24 billion for other benefits (long-term care, unemployment benefits, etc.). These major expenses of Social how to fix a watch Security, and are therefore natural candidates for cutting. But assuming that the ultra-Orthodox parties will be part of the coalition, the possibility of such cuts becomes very complicated story.
Most likely new prime minister will seek to put the issue of raising the issue of allowances for yeshiva students into the army, so that the Haredim will have to decide what is more important to them - child benefit how to fix a watch or Torah study. In this situation, child allowances may be sacrificed on the altar of the Torah, and the ultra-Orthodox will agree a compromise as a reduction of benefits for several years and uploaded again in a few years.
In any case, it is very difficult how to fix a watch to believe that the coming coalition agreements how to fix a watch prime minister could give the ultra-Orthodox parties sailing amounts, such as those given to them in the coalition agreements in 2009, then increased child allowances at 1.4 billion and transferred to the budget of 975 million annually Torah institutions. In addition, it was agreed then the recovery of the Education Network of Agudat Israel and support for hundreds of millions of shekels Shas educational network, Maayan how to fix a watch Torah education.
The Ministry of Finance is expected to demand defense budget cuts, but here comes a regular ritual every time runs out not only the rejection of the cut, but the transfer of the security how to fix a watch system additions. The only factor that decides on the defense budget is the prime minister himself, and in the case of Netanyahu, his security concept allows cuts.
Histadrut Chairman Ofer Eini was the most powerful man in after the last election, and this election is likely to be one of the biggest losers, especially if we take seriously the statement of the Labor Party leader Shelly, that will not sit in a coalition with Netanyahu.
The coalition agreement between how to fix a watch Likud and Labor determines, for example, that the new government "will not initiate legislation brings a reduction in wages and working conditions in the public how to fix a watch sector, are incorporated in employment contracts." In addition, the agreement states that "The Israeli government will not initiate legislation brings change in unfunded pension conditions."
But elections in 2013 are the 2009 elections, the Labour Party is no longer a natural candidate how to fix a watch to join the government and the bargaining power of the new government's eyes