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Basic Law: the State Economy
Passed on July 21, 1975, by the Eighth Knesset
a) Taxes, mandatory loans and other mandatory payments, shall not be introduced, and their rates shall not be changed, save by law, or on its basis. The same applies to fees.
b) Taxes, mandatory loans, other mandatory payments and fees that are paid to the State treasury, and whose rates have not been determined in the law itself, and there is no provision in the law to the effect that their determination in regulations requires the approval of the Knesset, or of one of its Committees, their determination in regulations requires prior approval, or approval within the period laid down by law - by means of a Knesset decision, or a decision by one of its Committees authorized for this purpose by the Knesset.
Transactions in state assets, the acquisition of rights, and the assumption of liabilities in the name of the State, shall be done by a person authorized to do so by law, or on the basis of the law.
1) The State budget shall be set by law.
2) The budget shall be for one year, and shall present the Government's expected and planned expenditure.
1) The Government shall lay the Budget Bill on the Knesset's table at the time determined by the Knesset Finance Committee, but no later than sixty days after the beginning of the financial year. However, in the period mentioned in article 36a(b) of Basic Law: the Knesset, the Budget Bill shall be laid on the Knesset table at a time determined by the Knesset Finance Committee, but no later than 45 days before the prescribed day mentioned in that article.
2) The Budget Bill shall be detailed.
3) The detailed budget proposal of the Defense Ministry, and the detailed budget proposal of defense bodies that shall be determined with regards to this matter by law, shall not be laid on the Knesset table, but on the table of a joint committee of the Knesset Finance Committee and Foreign Affairs and Defense Committee.
4) The Finance Bill shall be accompanied by an estimate of the sources for financing it.
c)If necessary the Government is entitled to submit an additional Budget Bill in the course of the financial year.
d) Should the government foresee that the Budget Law shall not be approved before the beginning of the Financial Year, it is entitled to submit an Interim Budget Bill.
e) Every year, the Minister of Finance shall submit to the Knesset a report on the implementation of the State Budget. Details shall be laid down by law.
a) Towards every financial year the Government shall prepare a multiannual budget that will include the Budget Bill for the coming year, as well as a budget plan for the following two consecutive years.
b) The Government shall lay on the Knesset table the Multiannual Budget Program together with the Budget Bill.
c) Every Budget Bill submitted by the Government to the Knesset shall be based on the Multiannual Budget Program that was prepared and laid on the Knesset table on the basis of this article in the previous year.
a) Should the Budget Law fail to be adopted before the beginning of the financial year, the Government is entitled to spend every month a sum equivalent to one twelfth of the annual budget for the previous year, with the addition of linkage to the consumer price index, which is published by the Central Bureau of Statistics.
b) Funds on the basis of clause (a) shall be earmarked first of all to fulfilling the State's obligations by force of laws, contracts and treaties. The remainder shall be used by the Government only to implement vital services, and activities that were included in the previous Budget Law, including those added by means of budgetary changes.
c) This article is not to be altered save by a majority of the Knesset Members.
a) A budgetary bill shall not be adopted by the Knesset, save by the votes of at least 50 Knesset Members. The said majority is required in First Reading, in Second Reading, and in Third Reading. However, should a bill turn into a budgetary bill after the First Reading, the said majority in required in Second Reading, and in Third Reading.
b) A budgetary reservation shall not be adopted by the Knesset save by the votes of at least 50 Knesset Members. Should a budgetary reservation to a bill be adopted, the Bill shall not be approved by the Knesset in Third Reading, save by the votes of at least 50 Knesset Members.
c) In relation to this article, the determination of the budgetary cost of a bill or reservation shall be performed by one of the Knesset Committees deliberating that Bill or reservation (hereafter - the Committee). The Committee shall determine the budgetary cost, on the basis of the evaluation of the Minister of Finance, or anyone authorized by him for this purpose, unless it has been proven, to its satisfaction, on the basis of some other evaluation submitted to it, that the budgetary cost is different from the estimation of the Minister of Finance. evaluations on the basis of this article shall be submitted with attached figures and estimates.
d) In this article - "A budgetary bill" - a bill to which all the following apply:
1) It was submitted by someone other than the Government;
2) Its implementation involves a budgetary cost of 5 million NIS or more, in any given budget year;
3) The Government did not approve the budgetary cost;
"A budgetary reservation" - a reservation to a bill, in which all the following apply:
1) Its implementation involves a budgetary cost of 5 million NIS or more, in any given budget year
2) The Government did not approve the budgetary cost;
"Budgetary cost" - an expenditure or a commitment for expenditure from the State Budget, or a diminution of State revenue, even if the aforesaid expenditure or reduction is accompanied by a reduction of expenditure or commitments for expenditure from the State Budget, or an increase of the state revenue;
"Expenditure from the State budget", "a reduction of State revenue" - including expenditure from the budget of a budgeted body, or a reduction of the revenues of a budgeted body;
"A budgeted body" - as defined in article 21 of the Foundations of the Budget Law, 5745-1985.
e) The sums specified in the definitions of "budgetary bill" and "budgetary reservation" in clause (d) shall be updated on 1 January of every year, on the basis of the rate of change in the consumer price index published by the Central Bureau of Statistics.
f) The provisions of this article shall not apply to a bill concerning the dissolution of the Knesset, and the holding of elections.
The printing of currency bills and the minting of coins that shall serve as legal tender, as well as the issue thereof, shall be done in accordance with the law.
The State economy shall be subject to the inspection of the State Comptroller.
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