Deficit reduction plans are being invested in infrastructure to increase productivity and growth
Infrastructure is the path that leads to growth
Photo:
Envato Elements
Produced by the Department of Special Supplements
In one of his early terms, Netanyahu inaugurated the Ein Tut interchange on Road 6, near Zichron Yaacov, and announced his infrastructure reform.
"An intercity road will be paved," he told me, "in six years."
Infrastructure is always the key to increasing growth in times of crisis.
A labor-intensive industry, which leads to increased productivity in the economy.
This is the time when we talk here about a presidential regime similar to the one in Washington, to compare the land of endless possibilities with us.
Donald Trump on his first day in the White House promised roads, interchanges, neighborhoods, cities and endless construction, with the highlight being the works on the wall of Mexico.
This week, the Bank of Israel published a chapter dealing with the public sector and its financing in the annual report for 2020. According to the report, the deficit treatment was pushed to the bottom of the public priorities due to the corona crisis, and was not addressed by the government this year.
The budget deficit in 2020 amounted to 11.6% of GDP, compared with 3.7% in 2019.
And as always, the field of infrastructure has emerged.
According to the Bank of Israel, plans to reduce the structural deficit are being invested in infrastructure investments to increase productivity, achieve sustainable growth, reduce inequality, as well as energy change and reduce greenhouse gas emissions, as part of the global green recovery trend.
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In the report, the Bank of Israel examines 3 options for financing these programs: the first, financing by raising debt; the second, financing by raising taxes;
Hence the Biden administration.
This week, the US President unveiled his American Jobs program, which includes $ 621 billion for the repair and upgrade of bridges, roads, highways and transportation systems, and $ 213 billion for the construction and renovation of more than 2 million homes in affordable housing; In electric cars; $ 111 billion investment in water network improvement; $ 100 billion in upgrading broadband network access; $ 100 billion to be spent on building and upgrading public schools; $ 180 billion in future technology research and development; $ 100 billion in favor Professional placement programs.
The financing will come in part from an increase in the corporate tax from 21% to 28%.
The cost of the entire program is $ 2 trillion over 8 years.
We have a lot more to learn, because with us the majority comes down to idle idle, talk between governments.
Produced by the Department of Special Supplements
