New budget
Netanyahu presents 2006 budget
New budget will see NIS 3.6 billion cut from ministries; army time to be reduced by 6 months; across the board reform in all sectors
Finance Minister Benjamin Netanyahu presented his budget for 2006, which will stand at NIS 272 billion (USD 60.4 billion).
The budget will be cut by NIS 3.6 billion (USD 800 million) – 1.5 billion (USD 333 million) of which will be taken from the Defense Ministry’s funds.
Other ministries will collectively lose NIS 1.1 billion in this year’s budget.
According to Netanyahu, “the budget has not been cut, nor is it an elections budget. It continues the trend of reforms for opening up the market to competition, in order to encourage growth, and to create jobs.”
Cut in compulsory duty
Netanyahu’s economic policy for 2006 will include the following reforms:
· A cut in national service duty time by half a year. According to Netanyahu, the move will help to encourage job seekers.
· Encouraging yeshiva students to join the job market. “Yeshiva students can start working at 23, rather than 28 as they do today,” said Netanyahu.
· A decrease in minimum wage for employees under 25.
· Open skies: Cheapening of airfares to and from Israel, in order to develop the tourism market.
· Reducing subscription medication
· Reform in the real estate market and in planning laws
· Reform in the electricity sector
