It’s official. After three years of political instability, when the needs of senior politicians seemed to override national priorities, an Israeli government has approved a state budget. Even better, according to many pundits, this is a budget that is promising real change.

I should also add that despite the return of corona and the increased border threats from the north, Israel’s largest government in history has done its civil duty and fairly rapidly.

The rating agency Fitch signaled its approval. Just before the announcement, it affirmed Israel’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook. And one interesting sign of the renewed confidence is the growing demand for new cars.

The proposed reforms include many much needed and long-awaited items. These include: –

• Finally, pensions will be upgraded to something almost reasonable.
• Many importers will lose their monopoly status.
• Similarly, tariffs on food items such as fruit and vegetables are likely to plunge.
• Many religious services will be privatised.

Can the country now sit back and breath? Will growing poverty levels disappear overnight? Well, obviously not. Unemployment is actually on the rise again, despite increased economic activity this summer. And the Kenesset will only approve the budget’s final version in November, by when many an item will have been watered down or simply left out.

That said, the Minister of Finance, Avigdor Lieberman, along with his senior civil servants deserve to be congratulated for their excellent start.