“The government can raise the spending ceiling to finance one-time expenses related to the war in Lebanon and the disengagement plan.”
The Bank of Israel Research Department, headed by Dr. Karnit Flug, today published its recommendations for the 2007 budget. The bank says the government can raise the spending ceiling to finance one-time expenses related to the war in Lebanon and the disengagement plan. Beyond that, the bank recommends avoiding any further deviation, as also proposed by Minister of Finance Abraham Hirchson.
The Bank of Israel recommends that the government should temporarily raise VAT by administrative order to 16.5% until the end of 2007, in order to finance the war and prevent a larger blowout in the budget deficit.
Published by Globes [online], Israel business news - www.globes.co.il - on September 4, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006