Minister of Finance Yuval Steinitz is lowering his expectations over the Trajtenberg committee recommendations at the end of the month, and is again clarifying that the government will not breach the budget in response to social demands. In a special interview with "Globes" TV on the occasion of the Conference for Strengthening Israel's Business Sector, Steinitz claims that there is room to make further cuts in the defense budget despite the security threats in the Middle East and tensions with Turkey and Egypt. The conference is being organized by the Tel Aviv and Central Israel's Chamber of Commerce, and "Globes".
"If we deviate from the no-break policy, for example by breaching the budget or by categorically changing the policy, we could fall from the bridge and crash into a very deep abyss," Steinitz said. He suggests, "greatly raising" the negative tax for working mothers to NIS 700 a month, in an effort to encourage them to go out and work, and also to encourage disadvantaged employees. "We are also considering dealing with pre-school education," he added.
Steinitz expressed confidence that Prof. Manual Trajtenberg would not suggest breaching the budget, and said that changes should not be made to the economic method accepted in Israel: "I do not think that it is the government's job only to satisfy the public or the protestors. The responsibility for Israel's economy rests on my shoulders."
Steinitz is calling for funds to be transferred from defense to welfare services, and he believes that it is possible to cut from additions to the defense budget: "There is room to make cuts in the defense budget without harming the defense establishment; I am referring to cuts from additions to the defense budget."
Steinitz also referred to the oligopolies and ways to deal with them, as well as the fury against Israel's tycoons and wealthy people, and the importance of creating a "business friendly" atmosphere so as not to scare away investors from Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2011
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