Battle of the budgets: Do big parties' numbers add up?

Analysis: Both Likud and Blue & White make far-reaching promises in their economic manifestos, but also fail to answer where the funds for their grandiose plans will come from

Gad Lior|
With just two weeks to go before the elections did the two major parties find time to turn to the issue of the economy, which will probably be top priority as soon as a government is formed after the elections - if a government can be formed this time.
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  • Yet as important as the issue is, both parties have failed to state where they would find the funds for their grandiose proposals, given that Israel already faces a massive budget deficit.
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    בנימין נתניהו בני גנץ בחירות 2019
    בנימין נתניהו בני גנץ בחירות 2019
    Prime Minister Benjamin Netanyahu, left, and Blue & White leader Benny Gantz
    (Photo: AFP)
    Both parties also fail to specify how they intend to drastically reduce the budget deficit that existed at the end of the last government's tenure.
    After all, no party ever says it will raise taxes and cut budgets for government services right before a national election.
    So how do the two major parties' economic manifestos compare?

    Cost of living

    Likud's first reform promises to drastically cut food prices while reducing tariffs and regulation.
    Outgoing Finance Minister Moshe Kahlon had also promoted initiatives to reduce tariffs, which greatly contributed to the budget deficit. Israel would also have to massively support domestic farmers, who will face growing competition from foreign food providers.
    Likud has also vowed to fight the centralization of the economy and fight monopolies.
    Blue & White says it will act to increase competition in the food sector and will appoint a "cost of living commissioner" whose job will be to address different issues in the current market, namely reducing food costs and promoting solutions to the housing problem.
    The Law for the Encouragement of Capital Investment will also be updated to incentivize manufacturers to lower prices.

    Housing

    Likud's manifesto promises to "drastically lower housing prices" by releasing large swathes of state-owned land, making massive cuts in bureaucracy and lowering taxes on home purchases and sales.
    The state will also subsidize mortgages for young couples.
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    בנימין נתניהו וניר ברקת בהצגת התוכנית הכללית של מפלגת הליכוד
    בנימין נתניהו וניר ברקת בהצגת התוכנית הכללית של מפלגת הליכוד
    Benjamin Netanyahu and Nir Barkat unveil Likud's financial manifesto
    (Photo: Moti Kimchi)
    Blue & White also promised to lower housing prices and the cost of living commissioner will oversee this matter as well. However, it remains unclear how Blue & White intend to do so.

    Health and education

    Likud promises to complete the construction of two new hospitals in Be'er Sheva and Kiryat Ata, as well as approve the construction of additional two hospitals, add 700 hospital beds per year, cut waiting times and implement new technologies in the healthcare system.
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    Patients waiting for treatment in hospital corridors
    Patients waiting for treatment in hospital corridors
    Patients waiting for treatment in hospital corridors
    Blue & White also promised a sizable increase to the health budget.
    Additionally, the centrist party vowed to prioritize investments in education and make computer studies a mandatory subject in schools.
    It says it will significantly increase higher education budgets in an effort to curb the "brain drain" that has seen many Israeli professionals leave the country for better academic and financial opportunities abroad.

    Developing the periphery

    Likud has vowed to make large investments in Israel's socio-geographic periphery in the northern Galilee, the southern Negev and the West Bank settlements.
    The plan is set to add 400,000 new jobs in the coming decade, equaling the quality of civil services to that in central Israel, establishing a new university in the Galilee and promoting entrepreneurship in the northern region.
    Blue & White promises large investments for entrepreneurship and innovation all across the country and not only in the periphery.

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    Mayors from the periphery communities marching for equal educational opportunities
    Mayors from the periphery communities marching for equal educational opportunities
    Mayors from the periphery communities marching for equal educational opportunities
    (Photo: Yaniv Afuta/Archive)
    Job market
    Likud vows to help small businesses by freezing collection of property taxes for five years, implementing reforms in business licensing and equaling the social conditions of freelance workers in Israel to those of salaried employees.
    Blue & White says it will raise the retirement age for women from 62 to 64 in eight years, in accordance with the increase in life expectancy, promote women in the labor market, safeguard workers' rights and help Arab women and ultra-Orthodox Jews to integrate into the workforce.

    High-tech

    Likud says it will promote future technologies, such as cyber, artificial intelligence, biotechnology and medicine, robotics, public transportation, installation of 5G networks and technical vocational training.

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    Intel's facility in Kiryat Gat
    Intel's facility in Kiryat Gat
    Intel's facility in Kiryat Gat
    (Photo: Herzl Yosef)
    Blue & White aims to strengthen Israel's high-tech industry while integrating sectors in Israeli society with a low presence in the field.
    Blue & White also the number of graduates in high-tech fields every five years.
    The party will also put a prime on the expansion and promotion of the public transportation system across the country while doubling budgets and comparing standards to those of OECD countries within 15-20 years.
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