The Finance Committee of Israel’s Parliament approved the state budget for 2021-22 on Thursday, the Knesset said, clearing a critical hurdle and preparing the way for a final vote, Reuters reported.
Snap elections would be triggered if the spending package is not finalized by Nov. 14. A ratified spending package would mark the first in over three and a half years.
Due to 30,000 reservations by opposition parties, marathon sessions started on Tuesday and ended around 3 am (0000 GMT) on Thursday.
In advance of the vote, the finance ministry added 10 billion shekels ($3.1 billion) to the reserve budget for 2022 to meet the fourth wave of the COVID-19 pandemic.
The ministry lowered its 2021 budget deficit target to 5.5%-5.7% of gross domestic product from 6.8% due to higher-than-expected tax revenues, reflecting a rapid economy recovery. It projects a 3.9% deficit in 2022.
The Israeli economy is expected to grow 7% in 2021 after contracting 2.2% in 2020.