The Israeli financial deficit overcomes the government’s target due to war expenses

6 hours ago

1 minute read

The Israeli financial deficit overcomes the government’s target due to war expenses

A senior Israeli financial official revealed the increase in the Israeli financial deficit last May, to overcome the goal of the budget in 2025, which suffers from problems due to the expenses of the war on Gaza. Israeli deficit increased to 5 % compared to the target between 4.4 & ndash; 4.9 % of GDP. Financially responsible for the budget, from the failure to identify additional sources of the budget and the failure of negotiation between finance and defense in this regard, adding & quot; In the event that an agreement is not reached with the Ministry of Defense on the matter, tax increases will be discussed & quot;

and the ceiling of government spending in Israel is subject to strict legal restrictions that prevent it from overcoming even with the increase in revenues, which requires the government to reopen the budget to amend it, which is a complex step in light of the limited time and existing political complications. It calls for immediate and large budget increases and the Ministry of Finance, which warns of the fact that these demands are not realistic. The newspaper warned that the increasing military spending will lead to an increasing marginalization of the civil sectors, and exacerbate the deterioration of the quality of life, with the breadth of the social gap and the escalation of economic burdens on citizens, without the existence of real solutions on the horizon. Credit classification. Israel.