Israel’s Cabinet today approved the compulsory savings plan drawn up by Finance Minister Levi Eshkol, to become effective in July — if approved by Knesset (Parliament) which will receive a Government bill on the issue this week.
The plan as envisaged by Mr. Eshkol is designed to “soak up” about 65,000,000 Israeli pounds (about $22,000,000) in new money expected to flow into the Israeli economy as a result of cost-of-living allowance increase becoming effective in July. The plan is designed to combat inflation in this country.
Under the savings plan, sums ranging from one-half percent to 5. 5 percent will be deducted from all salaries, beginning in July and continuing through next March. Self-employed persons will be affected along the same scale, based on their latest income tax returns. The savings bonds will bear interest of 4 percent, and will be repayable in four annual installments after April, 1966.
The plan is expected to “soak up” over 5,000,000 Israeli pounds ($1,667,000) each month, keeping that much money out of circulation when the new cost of living allowance increases go into effect in July, in accordance with Israel’s new economic policy.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
