Economic Plan Bill (Legislative Amendments for the Implementation of Economic Policy for the 2025 Budget Year), 5785-2024

This bill aims to amend various laws to streamline the economy, strengthen growth, increase productivity and employment, and reduce the regulatory burden. It is also intended to align economic and budgetary policy with the goals of the 2025 budget year. Digital accessibility of services by public bodies: Public bodies, excluding hospitals, will be required to make their services digitally accessible. This obligation will apply to government ministries, auxiliary units, local authorities, corporations established by law, and entities providing essential services to the public. Digital accessibility will apply to "common" services—services provided at least once a year to at least 5,000 individuals or 500 corporations. An exceptions committee will be established to review requests for exemption from this obligation. Collection of fines and fees: It will be possible to serve notices regarding debts for fines and fees via online notification, following digital identification of the debtor. Such service will be considered legal service, provided the notice is clear, simple, and includes an explanation of its meaning. Sewage infrastructure: Water and sewage corporations will be able to establish new government companies to execute sewage projects, with the goal of addressing barriers in the housing market and accelerating infrastructure construction. Local authorities: Municipalities will be able to lease real estate for longer periods (up to 8 years without the approval of the Minister of the Interior, and up to 15 years with approval), as well as increase their authority to enter into public-private partnership (PPP) projects. A new tender committee will be established in municipalities, composed solely of professional personnel (the municipal CEO or their representative, the treasurer or their representative, and the legal advisor or their representative), to ensure a fair and efficient tender process. Municipalities will be able to impose development levies (paving, drainage, open spaces) through regulations set by the Minister of the Interior, instead of local bylaws. The property tax exemption for damaged or destroyed assets will be shortened from two years to one year. Employment Service: The Employment Service will focus on collecting only essential data for formulating employment policy, instead of collecting overly broad information. The process for appointing senior officials in the service will be streamlined. Government companies: Boards of directors of government companies will be able to decide on the distribution of dividends (profits) without the need for general assembly approval, subject to the approval of the responsible minister. Public transport authorities: Metropolitan public transport authorities (e.g., in the Gush Dan and Jerusalem areas) and a national public transport authority will be established. The metropolitan authorities will be responsible for the planning, management, and operation of public transport in their areas and will receive extensive powers, including the licensing of bus and taxi lines. Wage reduction in the public sector: As part of fiscal stabilization measures for 2025-2026, the wages of employees in senior positions in the public sector will be reduced. The rate of reduction will depend on the salary level and the type of position. The reduction will not apply to minimum wage and will not affect the calculation of pension rights. Limitation of government expenditure and increase of deficit: Government expenditure in 2025 will be increased by up to 4.3% of GDP, beyond the existing ceiling, in order to finance expenses arising from the continuation of the fighting. The permitted deficit will increase accordingly. Tax revenues: Tax revenues will be reduced by 1.75% of GDP in 2025, as part of dealing with the fiscal situation. Temporary provisions: Some of the provisions in the law are temporary, meaning they will apply for a limited time. For example, the provisions regarding wage reduction in the public sector will apply in 2025-2026.

Source: הצעת חוק לקריאה הראשונה