The Forum of Economists issued a statement on Wednesday calling on the Israeli government to cancel the large budgets received by the ultra-Orthodox. The forum's announcement comes after the OECD published worrying data yesterday on the devastating impact of funding yeshiva students on Israel's economy. The organization calls for limiting budgets for growth-suppressing purposes, and for working to integrate Haredim and Arabs into the labor market.
As reported, the sharp increase in coalition funds for growth-suppressing purposes, combined with the decline in tax revenues, led to a doubling of the budget deficit.
Finance Committee approved: NIS 150 million for religious services // Credit: Knesset Channel
When the state budget was passed in May, the third economists' letter warned that there is a broad consensus according to which the ability of Haredi children to integrate into the labor market, earn a decent living, and pay taxes has a decisive impact on the future of the economy. The current trend, according to which the share of Haredim in the population doubles every 25 years, when Haredi children do not acquire basic skills essential for integration into a modern labor market, poses an existential threat to Israel's future.
"The economic policies of the Israeli government could cause enormous long-term damage to Israel's economic prosperity," the forum members write.
The Forum of Economists calls on the Israeli government to rethink its course, to listen to the recommendations of the OECD and many others. The Israeli government must act as soon as possible to improve the work skills of the entire population, and eliminate negative incentives for acquiring education and participating in the labor market.
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