As the coronavirus has spread out all across the world, Israel is no exception. The country has registered more than 6,800 cases and 36 mortalities due to the dangerous virus. Due to this, on March 30, 2020, the Prime Minister of the country has announced an economic program of $22.3 billion (80 billion shekel) to minimize the effect of the pandemic on the country.
The $22.3 billion packages include $2.75 billion announced by the government earlier to March 30. It is the biggest economic package announced by Israel ever for the economic crises as more sever lockdown can be imposed in the near period. The economic program will result in the budget financial deficit 10% of GDP which was estimated to be 3.5% before the pandemic. It will also raise the ratio of debt to GDP to 75% from 60% earlier.
One more reason for the huge economic package is the unemployment rise in the country. Earlier to the pandemic, the number of unemployed people in the country was around 30,000 which has is expected to reach a million soon. The government of the country has the belief that the country will return to its former strength once the pandemic ended.
The funding has been divided into four major parts. Around $2.75 billion will be spent extra on healthcare, nearly $5.5 billion for the salaries and self-employed people; out of this around $4.7 billion is especially for jobless people. Around $8.8 billion is allotted for small, medium-sized and large businesses as an aid and around $2.2 billion to boost the economy after the pandemic is eliminated.
Self-employed people in the country that are affected due to pandemic will be eligible for up to $1,650 in April and $2,200 in May. For business, $1.65 billion will be provided as a direct aid which is affected due to lockdown, and $1.65 billion as a relief in tax. Small and medium-sized businesses will be eligible for $2.2 billion as loan guarantees. Moreover, an additional $1.1 billion will be available for the big businesses to lend money whose annual turnover is above $110 million. These fundings are expected to provide oxygen to the nation’s businesses for at least two to three months.
