A State Department cable from a June 2009 meeting with Prime Minister Benjamin Netanyahu implies that the State of Israel no longer provides incentives for illegal settlements in the occupied West Bank. But the recently passed budget for 2011-2012 shows that the Israeli government’s funding for their illegal settlement enterprise is humming along.
According to a cable published by WikiLeaks:
In response to a question about GOI incentives to settlers, Netanyahu’s adviser Ron Dermer said the Olmert government had already removed them. Netanyahu said this was an issue that Israel could discuss further with the U.S.
But last Wednesday, the Israeli Knesset passed a budget with a load of incentives for settlers:
The 2011-2012 budget, approved on Wednesday by the Knesset, allocates NIS 2 billion to settlements, their services and security, and hundreds of millions of shekels more hidden among the different clauses of the bill.
Most of the settlements have been defined as areas of first national priority, in which the Israel Land Administration subsidizes 69 percent of the cost of land, or second national priority areas, in which the subsidy reaches 49 percent of the price of the land.
The purchasers of flats in a national priority area can receive a subsidized loan up to NIS 97,000, whether the flats are located in a priority area within Israel or in the West Bank. The housing assistance budget comes up to NIS 87,368 million in 2011, and NIS 86,518 million in 2012.