Early Election to Cost Israel $500 Mln: Reports

MOSCOW, December 3 (Sputnik) — Israeli Prime Minister Benjamin Netanyahu's decision to disband the governing coalition and set up a snap general election is expected to cost the country 2 billion shekels (about $500 million), Haaretz reported on Wednesday.

According to the newspaper, giving people a day off to vote will cost the budget some 1.5 billion shekels ($375 million). Another 220 to 250 million ($55-60 million) will be needed to finance an election committee, and 250 million ($60 million) to provide election financing to political parties. These figures do not include indirect costs, such as ones linked with the freezing of the budget bill, which will require ministries to operate in the beginning of 2015 on the 2014 budget.

A March election would see a new government formation only in April or May, with limited government effectiveness until July, at which time a new budget draft can be formed, Haarez said.

Netanyahu decided to run early parliamentary elections after failing to settle disputes inside the ruling coalition, dismissing both Finance Minister Yair Lapid and Minister of Justice Tzipi Livni. Both ministers have severely criticized Netanyahu's policies, in particular, a controversial "Jewish state" bill to declare Israel a nation-state of the Jewish people, as well as increased defense spending.