Deficit Reduction and Budgetary Expenditure Limitation Law (Amendment No. 24) Bill

What does the bill do?

Due to the Swords of Iron war, the government was required to increase the budget framework in the Budget Law for the 2023 Fiscal Year, 5783-2023, so that additional sums could be spent for the needs of the fighting and the civilian needs arising from it, which could not have been foreseen when the Budget Law for the 2023 budget year was passed. In light of this, the law raises the deficit ceiling for 2023 and provides that in 2023 the total deficit will not exceed 3.7% (instead of a rate of 2.75%) of gross domestic product. The law also increases the permitted government expenditure for 2023 by 3.75% to finance the expenses required for military needs (reflecting an amount of 17 billion shekels) and by 1.95% to finance the expenses required for civilian needs arising directly from the state of fighting (reflecting an amount of 8.8 billion shekels). It was further provided that the increase in the amount of government expenditure will not be taken into account in calculating government expenditure in the following years.