Jerusalem to Receive 700M Shekel Capital Grant

After months of intense negotiations between the Ministry of the Interior and the Ministry of Finance and a fierce political battle between Mayor Nir Barkat and Finance Minister Moshe Kahlon, an agreement on the capital grant for Jerusalem has been reached. According to the compromise, the city will receive 700 million shekels to supplement the funds collected from municipal taxes.

The city was also budgeted an additional 87 million shekels earmarked for financing city development projects such as commercial center upgrades, the planning of a business district in Givat Shaul, urban renewal, and a master plan for Wadi al-Joz.

Although most cities are provided with grants of additional monies for maintaining balanced budgets, Jerusalem’s large number of residents living below the poverty line, and who, therefore, do not pay municipal taxes, necessitates the yearly supplement to even out the deficit.

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