Government Expenditure on Social Services – 1985

The centerpiece of economic policy at the time was the first so-called “package deal,” an accord between the government, the Histadrut and representatives of employers and manufacturers. The first such agreement took effect in late 1984 and lasted until early February, 1985. It aimed to defeat inflation by artificial means, reducing it to a level at which its underlying factors might be treated, and sought simultaneously to trim the balance of payments deficit.

This paper appears as a chapter in the Center’s annual publication, Changing Social Policy: Israel 1985-1986, and is available upon request.