According to Ministry of Finance director general Haim Shani this translates to roughly 3.5% of the national overall gross domestic product, an amount equivalent to the Health Ministry’s entire budget
Ministry of Finance director general Haim Shani said last week that bureaucracy costs the Israeli economy NIS 30 billion each year.
According to Shani this translates to roughly 3.5% of the national overall gross domestic product, an amount equivalent to the Health Ministry’s entire budget. The statement was made at the 19th Caesarea Economic Forum, held this year at the College of Management in Rishon LeZion.
He added that the Ministry had set as a goal the reduction of bureaucracy, making it easier to open and run businesses in Israel.
He said that the Ministry was working on plans to smooth procedures both in-house and with other agencies, like the National Insurance Institute. Finance Minister Yuval Steinitz who was guest speaker at the Economic Forum said the amount of red tape had become a problem, but he warned that the public and media must back off somewhat and allow public servants to feel secure in their jobs.
“We have become the state with the most committees of inquiry in the world, and it is paralyzing,” he said. “The most important committee of inquiry we should establish would look at the question of why we have so many committees of inquiry.
