Jewish areas of Jerusalem are expected to receive extra attention with the allocation of some $1.45 billion toward development aimed at improving the capital’s Jewish demographics.

Media reports quoted Prime Minister Ehud Olmert as saying the government would approve NIS 5.75 billion to upgrade the city’s infrastructure while strengthening its Jewish majority.

In addition to the new budget, additional tax cuts are reportedly to be used as additional incentive to bring Jews to the capital.

Real estate in Jerusalem is extremely expensive, making it difficult for young Jews to live there. A study by the Jerusalem Institute for Israel Studies released last week said the Arab birth rate in Jerusalem is almost double that of the Jewish population.