Treasury predicts 3.5% growth rate for 2009
Prime Minister Olmert, Finance Minister Bar-On hold meeting on market projections for 2009, pivotal to deciding State's budget. Main goal to remain strengthening periphery, boosting socials policies
The Finance Ministry revealed its 2009 growth projections for the Israeli market Monday, saying they are expected to reach the 3.5% mark.
The projections were discussed in a special meeting held between Prime Minister Ehud Olmert, Finance Minister Ronnie Bar-On, his director-general Yoram Ariav, Ram Balinkov of the finance ministry's budget division, Raanan Dinur, Director-General of the Prime Minister's Office and head of the National Economic Council Manuel Trajtenberg also discussed the government's budget goals and policies for 2009.
The Treasury's growth projections in critical to deciding on the State's budget.
The main gold in 2009 will remain encouraging market growth while reducing the social gaps, said Bar-On. "We will continue funneling budgets to the periphery… And increasing our investment in both human and infrastructural capital." The State will, however, have to demonstrate fiscal responsibility in its investments, he added.
Olmert reiterated the need for a more just allocation of resources, adding strengthening the periphery and boosting socials and welfare policies will also be top government goals in 2009.
The Bank of Israel predicted the market will add 3.4% in 2009 – a projection which stands to be updated along with the Bank's projections for 2008, which are at 3.2% - far bellow that of the Finance Ministry.
