Israel's Finance Ministry has proposed sweeping structural changes meant to boost labour force participation, invest more in infrastructure, improve private sector growth and lower the high cost of living, Trend reports with reference to Reuters.
The overhaul plan, delivered to Prime Minister Naftali Bennett late on Wednesday, accompanies the 14-month, 2021-2022 state budget that is expected to be approved around November.
In taking office last month, Finance Minister Avigdor Lieberman pledged to integrate into the workforce ultra-Orthodox men who usually pursue studies rather than jobs, cut red tape for businesses and boost competition to help bring down prices.
To do so, he has proposed expanding vocational training to increase the employment rate and labour productivity, while setting employment targets for population groups with low labour participation such as ultra-Orthodox men.
Around 52% of ultra-Orthodox men are currently employed, and Lieberman is seeking to trim back generous state subsidies to them which are resented by many other Israelis as a strain on the budget hampering the economy.
Among proposals under consideration by cabinet ministers is to smooth imports by adopting international standards. "A product that complies with European regulation and is marketed in Europe can be sold in Israel," the ministry proposed.
Parallel imports will also be promoted, whereby there would be more than one official importer for most products to increase competition and bring down consumer prices.
Lieberman's ministry also aims to remove barriers to banking competition, convert office space to residential housing and make it easier for local companies to export medical cannabis.
With the tech industry a key economic growth driver, the ministry proposes to boost its productivity while encouraging mergers and acquisitions and enhancing high-tech firms' abilities to expand their bases in Israel.
At the same time, "unusual and excessive" regulations would be eased and a single regulatory authority set up to unify multiple regulators. The ministry noted there are some 190,000 businesses in Israel that require licenses and whose terms are set by seven regulators who do not work together and examine costs.