Israel's parliament approved 2011-2012 Budget, 63-33

The 2011 budget for government ministries will be approximately NIS 247 billion, and rise to NIS 259b. in 2012
 
Israel’s parliament approved ahead of a year-end deadline a2011-2012 biennial budget, which increases spending for education and employment programs, ahead of a year-end deadline. The 120-member Knesset backed the spending package by 63 votes to 33.
 
The 2011 budget for government ministries will be approximately NIS 247 billion, and rise to NIS 259b. in 2012. Additional funds held by the government for special situations will inflate the 2011 budget to a total of almost NIS 367b. and NIS 385b. in the following year. 
 
The budget calls for a deficit of 3% of gross domestic product next year and 2% in 2012, the Finance Ministry said in an e-mailed statement. Expenditure will increase by 2.7% in both years. The Finance Ministry said the deficit target is based on the assumption of 3.8% GDP growth in 2011 and 4% growth in 2012.
 
The new budget includes lower income tax and lower taxes on companies, something the Finance Ministry hopes will encourage development and create new jobs. However, the VAT will remain at 16% after being raised from 15.5% in 2009.
 
The Israeli economy will expand 4% in 2011, compared with 2.3% on average for The Organization for Economic Cooperation and Development predicts Israel's economy will grow by 3.9% in 2010, 4.0% in 2011 and 4.3% in 2012, above the organization's average. Unemployment is expected to fall to 6.1%, compared with the OECD average of 8.1%, according to the forecast.