Multi-annual budget

(a) Towards every financial year the Government shall (Amendment No. 4) prepare a multi-annual budget that shall 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 Multi-Annual Budget Program together with the Budget Bill. (c) Every Budget Bill submitted by the Government to the Knesset shall be based on the Multi-Annual Budget Program that was prepared and laid on the Knesset table on the basis of this article in the previous year. Convergence apparatus 3a1. (a) Once the Government has laid a budget bill on the (Amendment No 13) Knesset table, as stated in article 3(b)(1)(b)(2) (in this article – the budget year), the following provisions shall apply: (1) In the Budget Law for the budget year an adjustments budget will be prescribed whose rate and provisions for the matter of its use, shall be laid down by law (in this article – Adjustments Budget). The Government shall submit its proposal for the use of the adjustments budget for the approval of the Knesset Finance Committee; (2) The Government, on the basis of the proposal of the Minister of Finance, shall submit to the Knesset, by November 1 of the year preceding the budget year, and no earlier than October 15 in the year that preceded the budget year, a report on the matter of the existence or non- existence of an expenditure difference or a deficit difference that are expected in the budget year (in this article – Differences Report). Instructions on the matter of the submission of the Differences Report, and the details included in it, shall be laid down by law; (3) The Minister of Finance shall report to the Knesset Finance Committee, no later than 60 days before the submission of the Differences Report, about the economic and fiscal trends expected in the course of the financial year; (4) Should it be expected that in the course of the budget year there will be an expenditure difference or a deficit difference according to the Differences Report, and according to the said report use of the adjustments budget will not cover the full difference as stated, the Minister of Finance shall submit for the Government’s approval, together with the Differences Report, a plan for covering the difference balance (in this article – Balancing Plan). Provisions for the matter of preparing a balancing plan, and its details, shall be laid down by law. The Government shall approve and submit to the Knesset and the Knesset Finance Committee, the Balancing Plan, together with the approval of the Differences Report; (5) Should the actions based on the Balancing Plan be performed by December 1 of the year that preceded the budget year, and no deficit difference or expenditure difference remains, the Government shall approve this in a decision it shall deliver by the said date, and shall lay its approval on the Knesset table by December 1, in the year that preceded the budget year; (6) Should no actions have been taken in accordance with the Balancing Plan, or only part of them were performed by December 1 in the year that preceded the budget year, and a deficit difference, or expenditure difference remains, the following provisions shall apply, as applicable: (a) Should a deficit difference remain – the government expenditure sum permitted under the Budget Law for the budget year shall be reduced by the remaining deficit difference. The Government, in accordance with the proposal of the Minister of Finance, shall bring for the approval of the Knesset Finance Committee, a plan to reduce the permitted government expenditure, in accordance with this paragraph, by December 1 in the year that preceded the budget year; (b) Should an expenditure difference remain – the Government, in accordance with the proposal of the Minister of Finance, shall bring for the approval of the Knesset Finance Committee a plan to reduce the expenditure articles in the Budget Law for the budget year, in order to cover the remaining expenditure difference, by December 1 in the year that preceded the budget year; (c) The provisions relating to the matter of the plan that shall be submitted in accordance with clause (a) or (b), and the approval by the Knesset Finance Committee, shall be laid down by law. (7) The Knesset Finance Committee is entitled to propose to the Minister of Finance, changes in the plan for reducing the government expenditure that is permitted as stated in paragraph (6)(a) or (b), until December 15 in the year that preceded the budget year. Should the Committee propose as stated, the Government shall submit for the approval of the Committee, after it has weighted the proposals of the Committee as stated, a plan for the reduction of the permitted Government expenditure by December 24 in the year that preceded the budget year; (8) Should the Knesset Finance Committee fail to approve the plan submitted by the Government in accordance with paragraph 6(a) or (b), or in accordance with paragraph (7), the expenditure sums in the articles of the budget in the Budget Law, shall be reduced equally to the level of the remaining deficit difference, or expenditure difference as stated in article (6), as applicable, in order to cover the remaining difference; (9) The Knesset Finance Committee is entitled to lay on the Knesset table its conclusions from its deliberations, as stated in paragraphs (1), (3), (4) and (6) to (8). The instructions for the deliberation on this matter in the Knesset shall be laid down by law. (b) In this article – “Deficit Difference” – the difference between the deficit forecast for the budget year, to the permitted deficit sum for the budget year, as determined by law; “Expenditure Difference” – the difference between the Government expenditure forecast for the budget year, and the approved sum of the Government expenditure for the budget year, as determined by law.