(Communicated by the Cabinet Secretariat)

At the weekly Cabinet meeting today (Sunday, 29 December 2013):

1. Prime Minister Benjamin Netanyahu made the following remarks:

"Today, the IDF responded quickly and forcefully to the rocket fire from Lebanon. This is our policy regarding Lebanon just as it is with the Gaza Strip. We will not allow a drizzle and we will respond strongly, and if need be, will carry out preventive action. We hold the Lebanese government responsible for firing that is carried out from within its territory. What is happening in Lebanon is that Hezbollah is stationing thousands of missiles and rockets in apartments, in the heart of the civilian population, and is thus perpetrating two war crimes simultaneously. It is organizing the firing at civilians, just as it did today, and it is hiding behind civilians as human shields.

This is a double war crime that that is being perpetrated under the aegis of the Lebanese government and army, which are not lifting a finger to prevent this arming and these crimes. We hold the Lebanese government responsible for this development. We also know that Iran, of course, is behind this arming by Hezbollah. It is the same Iran which is continuing to assist the Syrian government in slaughtering civilians and which is continuing to arm terrorist organizations that are perpetrating acts of terrorism in many countries. It is also the same Iran that is currently developing centrifuges that are capable of enriching uranium six times faster than its regular centrifuges.

All of this is being done now, before the agreement is written. Even before the agreement is signed I see that the Iranian economy is recovering somewhat. We are monitoring these developments and are pointing them out to the world. We continue to see preventing the nuclearization of Iran as our main goal vis-à-vis the national security of the State of Israel, as well as the security of the region and the entire world.

Today, the Cabinet will vote on a series of economic decisions, the results of which will be felt by many people: First of all, we will reduce the plan increase in employers tax. This is important news for small businesses and others and will enable them also to maintain jobs. We will moderate the increase in government expenditure in order to avoid imposing taxes. The greater the government's expenditures are, the greater is the need for taxes and the more we rein in the increase in government expenditures, the more we rein in the imposition of additional taxes.

We will also add NIS 166 million in support of the residents of Sderot and the area adjacent to the Gaza Strip. We are committed to this and we will do it.

Last week, I attended a unique – and I would even say historic – event in which Transportation Minister Yisrael Katz and I dedicated the Sderot train station, which links the residents of Sderot to the center of the country and voice-versa, in less than one hour. This is part of the some momentum in developing the Negev and the Galilee that characterizes the actions of the government and our policy of continuing to carry out the great revolution of cancelling the periphery in the State of Israel."

2. Culture and Sports Minister Limor Livnat informed ministers that the Ministerial Committee on Symbols and Ceremonies, which she chairs, has decided that the main subject for Israel's 66th Independence Day would be "Women's Time."

3. The Cabinet decided to reduce the increase in employers; payments to the National Insurance Institute starting in 2014 while maintaining fiscal balance.

4. The Cabinet decided to change the rule for determining the limit on government expenditure.

 5. The Cabinet approved the following Foreign Service appointments:

• Zina Kalay-Kleitman as Israel's Ambassador to Croatia
• Chaim Koren as Israel's Ambassador to Egypt
• Yehuda Yaakov as Israel's Consul General in Boston
  

6. The Cabinet approved Prime Minister Benjamin Netanyahu's NIS 166 million plan for economic benefits for Sderot and the area adjacent to the Gaza Strip. The goal of the plan is to strengthen residents, local authorities and the regional economy in light of the security situation and the difficulties regarding daily life.

The 2014 plan includes a series of benefits for residents of the area: Tax benefits, local property tax benefits, exemptions from leasing fees, daycare benefits, investments in infrastructures and local authorities, benefits for industry, agriculture, trade and employment, and expanded medical and social welfare services.

Among the benefits are: 20% tax credits, a 30% discount in local property taxes on residences, subsidized daycare, economic assistance to local authorities, an employment track for the absorption of new workers in the area, a 24% discount in local property taxes for industry, trade and services, a 15% preference in the allocation of foreign workers for agriculture, subsidies for new dairy farms and exemptions from Israel Land Authority leasing fees.

Psychological and social services for those suffering from shock – especially children – will be expanded at five local centers. Assistance will be provided for the operation of emergency medical units in the form of increased mobile intensive care units, the operation of night switchboards and bolstering the mental health center in Sderot.

7. The Cabinet amended a previous decision regarding the section of the Trajtenberg Report regarding subsidized frameworks for children from 3-9.

8. The Cabinet discussed the publication of permits and other documents regarding contacts between state authorities and private bodies.

9. Social Welfare and Social Services Minister Meir Cohen and National Insurance Institute Director Shlomo Mor-Yosef briefed ministers on the NII's 2012 report on poverty and social gaps.