"In a few days, I will submit to the cabinet what I believe is the proper balance between defense needs, economic needs and social needs, including free compulsory education from the age of three… which we will institute in 2012," said Prime Minister Benjamin Netanyahu at the start of the cabinet meeting today.
"We are of course doing this while keeping the budget framework, which we will not break. We will keep the budget, while taking care of education and social needs as we see them. We will also do what is necessary for defense, maybe less money than the defense establishment wants, but enough in my opinion to keep Israel safe from its enemies."
Netanyahu also listed some of the Trajtenberg Committee recommendations that came into effect today, including NIS 430 a month for working fathers with children up to the age of 3, and NIS 15 a month for working mothers with children up to the age of 5.
Earlier, Minister of Finance Yuval Steinitz told “IDF Radio" (Galei Zahal), "2011 was a very good year for the Israeli economy in many ways. Growth was a high 4.8%, the unemployment rate fell to 5%, bucking the global trend, to its lowest level in decades, and we must fight to maintain strict budget discipline to keep these achievements." He added that there were still worries that unemployment would rise in 2012, which was why he was insisting on budget discipline.
Asked about the tax and price hikes that came into effect today, even as the prime minister and ministers received pay hikes of NIS 1,000 a month each, Steinitz said, "Ministers' salaries are updated automatically, I don’t know exactly by how much, I do not deal with this personally."
Asked again about the tax and price hikes, despite last summer's social protest and the prevailing public opinion that the tax breaks recommended by the Trajtenberg Committee do not compensate for the hikes, Steinitz repeatedly mentioned the NIS 400 extra that working fathers will receive for children up to the age of three, and the cancellation of customs duties on 600 goods, while evading mentioning the ministers' pay hike.
Steinitz also mentioned the income tax cuts, the NIS 300 monthly earned income tax credit for working mothers, and the government's plans to move forward on free education for day care, even as he reiterated that breaking fiscal discipline was liable to cause severe harm to the economy.
Published by Globes [online], Israel business news - www.globes-online.com - on January 1, 2012
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