REPORT ON FISCAL TRANSPARENCY IN ISRAEL

UNCLAS TEL AVIV 000652 SIPDIS SENSITIVE SIPDIS PLEASE PASS TO EEB/IFD/OMA ASNOW AND RFIGUEROA E.O. 12958: N/A TAGS: EAID ECON PREL IS SUBJECT: REPORT ON FISCAL TRANSPARENCY IN ISRAEL REF: STATE 16737 ¶1. (U) The Government of Israel is a parliamentary democracy with all of the mechanisms of checks and balances associated with this form of government. This includes an active opposition bloc with procedural remedies at its disposal. Israel also has an inquisitive, open civil society with a free press, active civil organizations, and numerous interest groups. ¶2. (U) The budget procedure, within the larger context of Israel's commitment to democracy, is and can be expected to remain transparent. The budget is available on the internet from the date it is first proposed through its final passage in the Knesset. The final version is also published in book form. Monthly updates on revenues and expenditures are also published on the internet, and the figures are meaningful and accurate. ¶3. (U) There are no particular U.S. Government-sponsored activities that promote fiscal transparency. However, the U.S. and Israel meet once a year at the Joint Economic Development Group (JEDG) to discuss Israel's economy in the context of Israel's fiscal and economic commitments to the U.S. under the 2003 U.S.-Israel Loan Guarantee Agreement. During those meetings, the issue of fiscal transparency is discussed. A continued Israeli commitment to maintaining an open budget and expenditure process remains one of the conditions Israel must fulfill to continue to receive U.S. loan guarantees under the program. ¶4. (U) No other country or multilateral institution provides assistance in the area of fiscal transparency. However, organizations such as the IMF do come to Israel to analyze and report on the economic situation, and also comment on ways Israel can enhance its fiscal transparency and governance. ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv You can also access this site through the State Department's Classified SIPRNET website. ********************************************* ******************** JONES