In the standoff between the Ministry of Finance and the haredi parties (specifically UTJ) regarding possible budget cuts despite coalition agreements, a new proposal has been made.
The Ministry has proposed, due to Litzman's refusal to budge on accepting cuts to child allowances that he worked so hard to achieve, that instead of giving child allowances, they would put aside money for each child, i.e. a savings plan for each kid, that would only be able to be opened and accessed when the child turns 18.
source: Calcalist
The only benefit to the Finance Ministry, it seems, is that there would be nothing forcing them to actually lay out any money right now - not this year, not next year, etc.. eventually they would have to put the money into the savings plans, but it would not have to be at any specific time.
This was exactly what the Ministry wanted with the budget cuts - just a delay in giving the money, not an actual cut. Litzman refused it before.
I think a savings plan is a great idea. However, I am not sure why Litzman is considering it. From Litzman's perspective the purpose of the child allowances, and raising them, is to give parents money to feed the kids basic necessities. Changing that to a savings plan is nice, but it does not help these needy families put bread and milk on the table right now. With that being Litzman's main issue, I am not sure why he is entertaining the idea at all, but it might just be to not have the appearance of being unwilling to consider anything.\
While I think it is a good idea, the one thing I see wrong with it is that if the idea is to give them the opportunity to delay actually starting the savings plans, when will they start putting the money in? they will always find a reason why "now is not a good time" and "we can start it next year". When my kid turns 18 will there even be any money in it?
Another curiosity about this discussion is where is the rest of UTJ on this, let alone Shas? Yes, Litzman was insistent on the allowances and very vocal on the matter, but he is not the only voice of UTJ. UTJ is made up of factions. Where is Gafni on this? Is he willing or not? Whether the hassidic Coucnil of Sages thinks it is a good idea or not, don't they all have to work it out together? Has Litzman been given the authority from his UTJ peers to deal with this matter alone?
What do you think? is the Finance Ministry's plan a good one or not?
------------------------------------------------------
Reach thousands of readers with your ad by advertising on Life in Israel
------------------------------------------------------
