The cabinet on Sunday, 25 Iyar 5773 approved a deficit target of 4.65% of GDP (Gross Domestic Product) of 2013 and 3% for 2014 as submitted by Minister of Finance Yair Lapid. The target sum translates to a deficit of 46 billion NIS.
Lapid has been under fire as Bank of Israel officials accuse him of crisscrossing as he releases statements pertaining to his proposed budget. He is criticized by a growing number of people for seemingly not really understanding the budget and the intricacies of preparing the next state budget.
Globes quoting “well informed sources” says Bank of Israel Governor Prof. Stanley Fischer wants a deficit cap of 4% of the GDP in 2013 and 3% in 2014. On Thursday, Lapid therefore announced the high deficit target of 4.9% of GDP, in order to subsequently lower it to 4.65%. He softened his position for 2014, and agreed to Fischer’s target.
Globe’s adds “Other sources have a different version. They say that Lapid realized his mistake of unilaterally raising the deficit target so much, called Netanyahu to apologize, and then went ahead and again revised the target.”
(YWN – Israel Desk, Jerusalem)
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One Response
1. compare to the USA and Europe, international markets love Israel. The Shekel has gone up in value relative to the dollar and Euro. Being more responsible than the USA or Europe may drive the Shekel quite high, hurting tourists and more importantly, exports.
2. Austerity hurts the poor. THe parties of the poor are not represented in the current government. This may have political significance (particularly for Shas, many of whose constituents are to right of their rabbanim on security matters, but are to the left in being being pro-welfare and therefore anti-austerity).