Olmert: the Disengagement from Gaza Have Significantly Affected the Situation in the Economy

Vice Prime Minister and Minister of Finance, Ehud Olmert, addressed the Government while reviewing the economic developments in the country in 2005.
 
Olmert stated that the economy has made significant progress, due to the Government's economic policy, coupled with the peace-related measures it initiated. "We are witnessing the fact that a peace-related outlook and the carrying out of the disengagement from Gaza have significantly affected the economic situation. This is evident by a massive increase in incoming tourism, coupled with the Tel Aviv 100 Index, starting in the second half of 2005.
 
During the review, Dr. Yossi Bachar, the Director General of the Ministry of Finance, stated that the Israeli economy was in good shape. "Sustainable growth that is based on the business sector. There is low inflation, no deficit in the balance of payments, the economy is growing in an economically-sound manner and this year is expected to end with approximately 5% growth".
 
Olmert reviewed the manner in which the economy will be managed in the absence of a budget for 2006, along with the plan to narrow the social gaps, on which he was working these very days. He stated that he would shortly present a detailed breakdown of theplan's budget to the Prime Minister, while precisely outlining each item of the expenditure, totaling at least NIS 14 billion over the next seven years.
 
Regarding the 2006 budget, Olmert stated: "I would be delighted if the 2006 budget could be approved by the Knesset, but I am skeptical. My guidelines will be such as to ensure that everything that is crucial and necessary will be managed correctly. I do not intend to allow anyone to sabotage the Government's activity, under the pretense that there is no budget. I will do all that it takes in order for the Government to work according to the rules and regulations - yet with the maximum flexibility - in carrying out the 2006 budget".