In accordance with the 2022 biannual actual spending report, released by the Ministry of Finance, the actual spending earmarked for the Ministry of Labor was ILS24.6 million of ILS7,491.5 million of the overall annual actual spending of the 2022 general budget, or 0.33% of the overall expenditures.
Important Terms:
Expenditures: Includes current as well as capital and developmental expenditures
Current expenditures: Includes salaries, wages, social contributions, operational and transfer expenditures
Salaries and wages: Salaries and wages of Ministry employees
Social contributions: Represents the government’s contribution to the General Pension and Social Security Authority for pensioners
Operational costs for “commodities and services”: the necessary expenditures for the operation of the public institution, i.e. the Ministry (building rentals, electricity, water, fuel, etc.) and they are part of the current expenditures. Medical referrals at the Ministry of Health and the purchase of medicines are classified under the item “Goods and Services”
Transfer expenditures: are the expenditures paid by the government to different societal segments through a public institution for the benefit of a third party (such as payments to assist the poor or to martyrs’ families).
Capital expenditures: includes the possession of capital assets (buildings, land, equipment, vehicles, etc.)
Developmental expenditures: are expenditures which have a nature that is different from current expenditures in terms of their useful life and the return from expenditures, whereas their useful life and the return/yield extend beyond one year.
Cash-basis: The method which financial and accounting transactions are conducted upon cash payment of cash receipt, i.e. it focuses on cash flow activity whereby financial operations are not registered in the books until after collection or the cash payment of the due amount is paid.
Accrual basis: The method in which data and accounting in transactions are registered on the date of the occurrence irrespective of cash payment or receipt.