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Israel
THE PUBLIC SECTOR
The two most important
tools of economic policy in Israel have been the budget and foreign
exchange control. Through the budget, the government can deal
with all financial activities of the public sector. Defined in
its broadest terms, the public sector includes the central government,
local authorities, and national institutions (where the central
government clearly dominates). In 1986 government and private
nonprofit institutions represented about 20 percent of GDP, which
was about a 20 percent increase over the public sector's importance
in 1968. Similarly, the provision of government-owned housing
and rental services increased by 28 percent, rising from 8.4 percent
of GDP in 1968 to 11 percent in 1986. Overall, in 1986 the business
sector represented 69 percent of GDP, whereas the public sector,
in all of its dimensions, represented 31 percent of GDP.
Data as of December 1988
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