STATE BUDGET

DRAFT FOR 1998

MAJOR PROVISIONS
OF THE BUDGET
AND MULTIYEAR BUDGET PLAN

Jerusalem Tishri 5758 October 1997



 

To the Reader,

This publication summarizes the major provisions of the 1998 draft budget. Additional material related to the government activities can be found in detailed books of this draft budget.

 

CONTENTS

 

PART 1: THE BUDGET DOCUMENTS

The Budget Bill

The Draft Budget

Forecast of Revenues and Borrowing

Estimated Tax Benefits

Draft Budget of the Business Enterprises

 

PART 2: GENERAL REVIEW

The Budget Policy

Analysis of the Draft Budget

Major Economic Developments

 

PART 3: REVIEW OF MAJOR ACTIVITIES

Ministry of Defense

Governance and Administration

Social Services

National Insurance Institute

Economic Ministries

Infrastructures and Building

Debt Repayment and Credit Subsidies

 

PART 4: STATE TAX REVENUE

Forecast of State Tax Revenues for 1998

Tax Benefits for 1998

 

PART 5: BUDGET TABLES

Budget Prices

Personnel Ceilings, 1996-1998

Gross Expenditure Budget, 1996-1998

Net Expenditure Budget, 1996-1998

Repayment of Debts

Forecast of Revenues and Borrowing

 


PART 1

BUDGET LAW
FOR THE 1998 FISCAL YEAR

 

Budget Bill for the 1998 Fiscal Year

Draft Budget for the 1998 Fiscal Year and Summary of First Appendix

Forecast of Revenues and Loans in the 1998 Fiscal Year

Forecast of State Revenues not Collected on Account of Tax Benefits, 1998

Draft budget for the 1998 Fiscal Year: Business Enterprises
(Summary of Second Appendix)

 

BUDGET BILL FOR THE 1998 FISCAL YEAR

Definitions and interpretations 1.

In this law -

"Budget item" - a sum of money or number of jobs, specified in title line marked by double broken line;

"Area of activity" - a sum of money or number of jobs specified in title line marked by broken line;

"Program" a sum of money or number of jobs specified on a line without marking;

"1998 fiscal year" - the period beginning on January 1, 1998 and ending on December 31, 1998;

Any other term - as defined in the Foundations of the Budget Law, 1985 (hereafter - Foundations of the Budget Law).
The Expenditure Budget and its distribution 2. The Government may spend NIS 207,377,617,000 in the 1998 fiscal year; division of this sum to parts, and distribution of each part thereof to budget items, to areas of activity and to programs, will be as specified in the first column of the first appendix, that called "Expenditure".
Revenue-Dependent Expenditure Budget 3. In addition to all the sums which the Government may spend in pursuance of section 2, it may spend NIS 7,923,396,000 in the 1998 fiscal year, as revenue-dependent expenditure; distribution of this sum to parts and each part thereof to budget items, to areas of activity and to programs, will be as specified in the second column of the first appendix, that called "Revenue-Dependent Expenditure".
Maximum manpower 4. The government may fill 55,306 job positions in the 1998 fiscal year; distribution of this number to parts, and each part thereof to budget items, to areas of activity and to programs, will be as specified in the fourth column of the first appendix, called "Maximum Manpower".
Business Enterprise Budget 5. (a) In addition to sums which the Government may spend in pursuance of sections 2 and 3, it may spend in the 1998 fiscal year the sums specified in the first column of the second part in the second appendix (hereafter - business enterprise budget); distribution of these sums to budget items, to areas of activity and to programs will be as specified in that section.

(b) In addition to the number of positions which the Government may fill in pursuance of section 4, it may fill 15,794 positions in the 1998 fiscal year in the business enterprises; distribution of this number to budget items, to areas of activity and to programs, will be as specified in the third column of the second part of the business enterprise budget.

(c) The forecast of revenues to cover the business enterprise budget in the 1998 fiscal year is as specified in the first par of the second appendix.
Provisions Regarding Specific Items 6.

In the 1998 budget year -

(a) Pursuant to a government proposal, distribution of the budget in budget item 17 to areas of activity and to programs will be determined by a joint subcommittee of the Knesset Finance Committee and Foreign Affairs and Defense Committee.

(b) As regards the use of the General Reserve in pursuance of section 12 of the Foundations of the Budget Law, in the framework of the activity of the Prime Minister's Office, at the Minister of Finance's request the committee will be replaced by a special committee to be appointed by the Knesset Foreign Affairs and Defense Committee from among its members.
Bank of Israel loan 7. The sum of the loan from the Bank of Israel in the 1988 fiscal year, for repayment of government debts to the Bank of Israel will not exceed NIS 1,500,000,000, as stipulated in section 48(b) of the Foundations of the Budget Law.
Updating of the sums in the Foundations of the Budget Law 8. In the Foundations of the Budget Law -

(1) In sections 11 and 12, "NIS 1,700,000" will be replaced everywhere by "NIS 1,900,000" and "NIS 3,100,000 " by "NIS 3,400,000";

(2) In section 19(b)(1), "NIS 80 million " will be replaced by "NIS 87 million";

(3) In section 27 -

(a) In subsection(a), "NIS 80,000 " will be replaced by "NIS 87,000";

(b) In subsection (b), "NIS 414,000" will be replaced by "NIS 450,000";

(4) In section 32, in the definition of the "method of funding", "NIS 1,850,000" will be replaced by "NIS 2,000,000";

(5) In section 43 -

(a) In subsection (a), "NIS 86,000" will be replaced by "NIS 94,000";

(b) In subsection (b), "NIS 860,000" will be replaced by "NIS 940,000".
Effective Date 9. This law goes into effect on January 1, 1998
Publication 10. This law will be published in Reshumot within three months of the date of its enactment

 

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