The Role of the Government

The public sector plays a dominant role in the Israeli economy: Its expenditures equal about 65 percent of gross national product (GNP). It consists of central and local government, national organizations such as the Jewish Agency, the education sector, the National Insurance Institute (NII), hospitals, and the health funds as well as other non-profit making bodies. Its expenditures as a share of national income fell by about 9 percent since the early 1980s.