The Knesset Finance Committee opposes proposals by the Ministry of Finance to make more cuts in National Insurance Institute allocations included in the 2008 economics arrangements bill. The Ministry of Finance wants to cut allocations by 4%, as originally set during the recession in 2002, when Likud chairman MK Benjamin Netanyahu was minister of finance.
The Ministry of Finance wants to cut old age pensions, unemployment benefits, income support, incapacity benefits, childbirth grant, children's allowance, severance pay in the event of an employer's liquidation or bankruptcy, and funeral payments, among other allocations.
The National Insurance Institute estimates the cut at NIS 200 million, not including income support payments. The Ministry of Finance estimates that the cuts will save NIS 100 million a year.
Finance Committee members say that there is no reason to make the cuts in view of Israel's economic growth.
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2007
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