Netanyahu Financial Grant Plan Isn't Approved

Social media was buzzing with the news that Israeli Prime Minister Benjamin Netanyahu and Finance Minister Israel Katz, on Sunday, announced an economic stimulus package including cash grants to all Israelis aged 18 years and over. The plan includes amongst others, a stipend of NIS 750 ($230) for all Israeli adults, NIS 500 ($153) for every child, up to four per family, and subsequently NIS 300 for every child after. Wealthier households would not qualify for the grants. This is the second time Netanyahu makes such an announcement, the first time he proposed it was in July 2020, however it was revised by the Israeli treasury that only qualifying candidates receive a grant. On Thursday the National Insurance Institute released their annual poverty report which reflected that Israel faces the lowest standards of living in 20 years due to the Coronavirus pandemic. Now, less than two months away from the national elections, set to be on 23 March, Netanyahu again makes promises to Israelis without the necessary authorization. 

The plan drew strong criticism from the Ministry of Finance and Bank of Israel, who were not consulted beforehand and said that it lacked the details to assess its cost, efficiency, and economic necessity. The Bank of Israel said “the plan may not be needed” and a criterion was required to distribute the resources. The attorney-general, Avichai Mandelblit clarified that such a plan during election season is inappropriate and called it election economics, warning that politicians were legally prohibited from taking economic measures that may be considered for election purposes. Analysts say the plan “has virtually no chance of being approved”. The rushed nature of the proposal on the heels of other economic proposals by parties such as  Gideon Sa’ar, head of opposition party New Hope and a Knesset approved plan called “From Brakes to Growth”, coupled with the adamancy by Netanyahu, points to his wanting to use it as a prop for elections. Netanyahu also uses his own personal social media to share the news via a video to take credit for and cement the link between his party and the economic stimulus proposal, whereas usually most major announcements are disseminated by the press through the Prime Minister’s office.

It is not true that Prime Minister Netanyahu will be providing a financial grant for all Israeli citizens at this time. Given the context of the announcement and timing, it is clear that the financial grant for Israeli citizens is only a proposal at this time and it has not been implemented. According to analysts and comments from the Bank of Israel, it also appears unlikely to be implemented, yet Netanyahu announced it as a fact. Such a proposal will take its procedural course and then a verdict will be made.