New Bituach Leumi Director-General Yigal Ben-Shalom launched
an unprecedented attack against Finance Ministry officials
and their attitude toward Bituach Leumi. Noting Minister-
without-Portfolio at the Treasury Meir Sheetrit's attack on
its policy he said, "The Finance Ministry would like to
weaken Bituach Leumi's standing and strength and transform it
into a source of income for the Ministry." Ben-Shalom made
his remarks at a conference for accountants at the Dead
Sea.
According to Ben-Shalom, the series legislative changes
initiated by the Treasury in recent years that affect Bituach
Leumi have a single, aggregate meaning: the state is no
longer responsible for the social security of its citizens.
"In order to survive, the citizens of the state must look out
for themselves," he said, "but the problem is they can't."
He promised to work during his term as director-general to
publish a model based on Bituach Leumi data that would allow
decision-makers to predict the repercussions of the
dimensions of poverty and income disparity rather than seeing
the poverty figures as mere updates from two years earlier
now that the damage has already been done. "The model will be
presented to the government when the state budget is
submitted. It is important for government ministers to set
their priorities for the state budget with an awareness of
the social repercussions due to the inequity and poverty
forecasted in the relevant budget year."
Ben-Shalom claims that in the coming three years Bituach
Leumi will be forced to make up from within for the recently-
announced 1.5 percent reduction in Bituach Leumi payments,
which will translate into another NIS 3 billion (about $600
million) in the State budget. According to a Bituach Leumi
analysis, employers will have to pay a total of NIS 300
million ($60 million) for their workers, but meanwhile the
Finance Ministry is granting employers benefits worth a total
of NIS 3 billion ($600 million), or 10 times their tax
burden.
On the subject of cuts in Children's Allowances and old-age
benefits Ben-Shalom said, "It is unconscionable that at the
swing of an ax, without public deliberation, due
consideration, and consulting with the Institute, decisions
are made to cut billions of shekels that have an effect on
the citizens of the state. This is [indicative] of improper
administration."
During the conference Ben-Shalom announced he would demand an
increase in old-age benefits with supplementary income for
every elderly person who does not receive NIS 2,200 in total
monthly income. This amount is the bare minimum subsistence
level for single people. These payments will be derived by
moving up the 4 percent cut in old-age benefits. "Just as tax
reforms can be brought forward for the sake of the middle
class, so too is it possible to bring forward the cut in
order to assist the lower classes. Furthermore according to
predictions a 2 percent growth rate is expected in the coming
year . . . The fruits of growth should reach not just the top
income brackets but also the weak members of society who have
been suffering for several long years because of the
cuts."
