Knesset budget shrinks, MK salaries boosted

Knesset’s 2007 budget about NIS 426 million, down from past year’s NIS 433 million budget, but Knesset members’ salaries to increase as they are indexed to average salary, which is expected to rise 2.5 percent on January 1. In addition, MKs’ car maintenance budget to increase by NIS 600,000

The Knesset’s 2007 budget is about NIS 7 million, although government expenditures are actually on the rise. Most notably, Knesset members’ salaries will increase by NIS 280,000 (USD 66,700), and their car maintenance and leasing plans will increase NIS 600,000 (USD 143,000).

Allowances for living accommodations and rent in Jerusalem for MKs hailing from far distances will increase by NIS 800,000 (USD 190,500).

The Knesset Budget Committee (that is in joint operations with the Knesset House Committee and the Finance Committee) will discuss, and likely approve, the NIS 426 million (USD 101.5 million) budget Monday. This is a decrease from the past year’s NIS 433 million (USD 103.1 million) budget. By law, the committee decision is not under the control of the Finance Ministry.

The cost-cutting efforts made by Knesset Speaker Dalia Itzik and Knesset Director-General Avi Balashnikov (a new post as of six months ago) have already started to crumble.

About NIS 9 million (about USD 2 million) have been returned to State coffers as a donation for the war effort in Lebanon. Costly workers are being sent on early retirement.

Joint expenditures are being mercilessly slashed, not least of all in order to feed the massive yearly expenditure racked up by the new Knesset TV channel. This medium started its way in this world as a NIS 15 million (USD 3.5 million) expenditure, and has crept this year to NIS 19 million (USD 4.5 million).

Apparently, the more they get fed, the stronger their appetite, and the channel wanted an even bigger slice of the budget next year, but Itzik showed them the door.

So why is it that MKs’ salaries are going to increase in the coming year, to a hefty grand total NIS 50.6 million (USD 12 million) of the budget? Because MKs are included in the club of functionaries of government institutions and the public sector, whose salaries are indexed to the average salary, which is slated to rise next week by 2.5 percent.

The Knesset only finances the salaries and expenditures of 94 out of the 120 Knesset members. The Cabinet pays for the salaries of ministers and deputy ministers.

The MKs and ministers who severed allowances for the elderly (about NIS 1,200, or USD 285, per month) from the lucrative average salary index, never thought to do the same in regards to their own salaries (about NIS 32,000 – 36,000, or USD 7,600 – 8,500) as an act of social solidarity, which apparently is only worthwhile while preaching their morality to others over the Knesset podium and in the media.

And why is their car leasing budget going to grow by NIS 8 million (USD 1.9 million). Because of the new leasing rate of New Kopel-Sixt, which didn’t prevent the company from winning the Knesset tender once again. In exchange, the company provided new vehicles, no less than 90 cars of the top Mazda 5 and 6, Ford Mondeo, and Volkswagon Jetta models, three months ago.

The Knesset calculated that the new leasing system is still cheaper than the cost of maintaining a private car. Only a few MKs still cling to the old system. Those who prefer leasing enjoy trips on the house, and have racked up impressive mileage.

And, while they’re not to blame for the rise in gas prices, it is no coincidence that they are trying to block the Finance Ministry’s plan to increase the worth of private use of the car, which will double the taxes they pay on it.

Reportedly, parliamentary aides will receive a salary boost as well.

Zvi Lavi
Published: 12.25.06, 16:36

But yet the Israli public is silent, you really do get the government you deserve.