Governor of the Bank of Israel Stanley Fischer has expressed support for the budget for 2013-2014 formulated by the Ministry of Finance, which includes many austerity measures, such as rises in income tax and VAT, and spending cuts for government ministries.
"As I said when I expressed my support for the decision to set the deficit target for 2014 at 3% of GDP, this decision means painful steps," Fischer said today. "In the nature of things, the general public mainly feels the blow that every household in Israel will suffer from implementation of the plan.
"It is not possible to meet the fiscal challenge that we face by focusing solely on one section or another of the population. As the minister of finance has said, the entire community will have to bear the burden. In the end, restoring fiscal stability will strengthen the economy's ability to withstand shocks, help it to exploit its growth potential, and support the welfare of the entire population."
Fischer called the budget plan "courageous" and "important and responsible". On the defense budget, Fischer observed that any cut was a matter for the government. "It is the government's duty to ensure the security of its citizens, but this must be done while maintaining the general framework on which the government has decided," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on May 9, 2013
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