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Speaking to the media before a Thursday, 7 Menachem Av cabinet meeting, Prime Minister Binyamin Netanyahu spoke out confidently regarding the proposed state budget, which he feels will continue to promote economic growth in the nation. Mr. Netanyahu stated, “Today the Government will discuss the 2017-2018 state budget. The budget will encourage investment, increase competition and lower the cost of living. I would like to reiterate: Growth is the most important foundation in managing the economic and social policy of the State of Israel. There is no social policy without an economic policy that encourages growth and creates resources. Everything else is talk about allocation and reaping the fruit from the tree. We must constantly see to it that the fruit increase, to cultivate the tree; therefore, thanks to the growth of our economic tree, tax revenues are coming in which allow the state to finance all its needs – the social services in education, social welfare, health, security and all other fields. Therefore, the budget includes several vital steps to increase growth.

“First of all, there are reductions in tax rates. Lowering tax rates leads people to invest, entrepreneurs will invest, employees will work, people will assume risk in order to create value. They do not do so if taxes are high; they do this when taxes are low and the result is increased tax receipts, this is the first step. The second thing is lowering regulation. Regulation is strangling the economy; we are opening the economy. Third, we are encouraging additional international technology firms to come and invest in Israel. We are in the global economy. We are competing for capital, knowledge and initiatives and we are encouraging initiatives and the world’s major, leading technology firms to come and invest in Israel. Fourth, there is major investment in public transportation infrastructures. You all travel on the country’s highways and you see the great change; we will continue it.

“I would like to thank you, Finance Minister, and the people at your ministry, for preparing the budget. I would like to thank the ministers and worked with you and I wish the State of Israel, the citizens of Israel and the Israeli economy and society very great success.”

(YWN – Israel Desk, Jerusalem)