Despite the criticism surrounding the non-diversion of coalition funds for the needs of the war, the revised state budget for 2023 is expected to be approved by the Knesset this week.
Coalition funds have hardly been cut, but the budgets of many government ministries have. For example, the budget of the Ministry of Economy, which suffered a cut of half a billion shekels. Just remember that this is the firm that is responsible, among other things, for industry and small businesses. According to the Ministry of Economy, the funds were intended to serve as grants to local industry – expanding factories, investing in technological upgrades, and more.
Ron Tomer, Chairman of the Manufacturers Association, Photo: Oren Ben Hakon
Dr. Ron Tomer, President of the Manufacturers Association, was a guest on "Added Value", the economic podcast of Israel Hayom, and discussed the government's priorities in times of emergency and what the government should do to help the local industry in the war. Tomer strongly criticized the government following the approval of the revised budget for 2023, saying: "This is not a revised budget for 2023, but a broken budget. I don't understand how dozens of ministers, some of whom barely contribute anything on a daily basis, voted in favor of the budget. We will end the war with a large deficit. The war budget must provide a response to growth."
"What scares me about this budget is that there is a growing deficit and growth is stopping. This budget, on the one hand, increases the debt, and on the other hand, the budget, he says, is for growth – we are with a growing overdraft and lowering the state's revenues. The rating agencies see this and are liable to downgrade the State of Israel as a result of such a budget."
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"The future will be enslaved"
Tomer went on to warn: "When the country's rating is lower, the risk increases, the interest rate on loans increases. The State of Israel will have to take out loans to finance the defense budget and it will take them at high interest rates, meaning that a large part of our future will be pledged to interest repayments. Well done to Nir Barkat who voted against the budget, and the question here is why other ministers did not vote against the budget. And what about all the unnecessary offices?"
What can the government do to help the local industry at this time?
"First of all, it's important to say that when an industry grows, an economy grows. We appealed to the Prime Minister to declare the obvious – that the State of Israel prioritize Israeli products. The Takuma Administration will invest billions in rebuilding the south, and there will be many other investments, including defense investments, and I say that we see what some of our friends from abroad are worth, what our Turkish 'friend' is worth. Our biggest doubt today are the Turks. I really think it would be a shame for the State of Israel to rehabilitate ourselves in Turkish products. That would be absurd."
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