Cost of living and housing headline Israel's state budget and economic plan

The plan includes the promotion of market competition, several infrastructural reforms and the transition to digital payslips.

Finance Minister Bezalel Smotrich, March 2, 2023. (photo credit: AVSHALOM SASSONI/FLASH90)
Finance Minister Bezalel Smotrich, March 2, 2023.
(photo credit: AVSHALOM SASSONI/FLASH90)

The state budget and economic plan for 2023-2024 was presented to the Knesset on Thursday in preparation for its first reading. The plan aims to address the structural issues facing the economy, while focusing on a host of topics, including reducing the cost of living via the promotion of market competition and the reduction of regulations, streamlining excessive bureaucracy and improving the housing market, along with several other key objectives.

Finance Minister Bezalel Smotrich said that the budget was focused on infrastructure and growth.

“This morning we placed the state budget and the economic plan for 2023-2024 before the Knesset. We have only one thing in mind – the welfare of the citizens of Israel. All of them. We drew up a responsible budget that is biased towards infrastructure and growth, and we are doing everything we can to maintain Israel’s economy and to work for the welfare of its citizens,” Smotrich said.

Upcoming reforms in the economic plan

The economic plan includes a number of key reforms, such as the National Infrastructure Law, a fund to increase investment in housing, the reform of district committees for planning and construction, and reforms to the rental market. It also includes measures to reduce the regulatory burden on food products and fruits and vegetables, reduce the phenomenon of duplicate health insurance, increase competition in the payments market and reduce distortions in the insurance and savings brokerage industry.

Minister of Finance Bezalel Smotrich holds a press conference with bereaved families in the Ministry of Finance in Jerusalem on January 8, 2023.  (credit: YONATAN SINDEL/FLASH90)
Minister of Finance Bezalel Smotrich holds a press conference with bereaved families in the Ministry of Finance in Jerusalem on January 8, 2023. (credit: YONATAN SINDEL/FLASH90)

Other reforms include easing the bureaucratic requirements for small traders, changing regulations to encourage development and innovation in pharmacy, transitioning from written payslips to digital payslips and combating black-market and gray-market crime. The plan also aims to reduce the use of fictitious invoices.

The first reading and vote expected in the coming days.