P F Tinmore
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- Dec 6, 2009
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Prime Minister Benjamin Netanyahu, who has long boasted how Israel has avoided the fiscal fate of Spain and Greece, is poised to unveil tough austerity measures likely to hit the underprivileged.
The measures will aim to make up part of the budget deficit that has climbed to 4.0 percent of Israel's GDP -- twice that which was expected for 2012.
And earlier this week, he also suggested the defence budget could rise even further because of regional developments, notably in Syria.
Beyond the increased expenditure, tax revenues have dropped because of slow economic growth, which is 3.1 percent so far this year compared with 4.8 percent in 2011.
Israeli officials also fear that the major international rating agencies, which had hitherto provided Israel with a clean bill of health, will lower their ratings.
Israel eyes austerity after prosperous year - Yahoo! News
The measures will aim to make up part of the budget deficit that has climbed to 4.0 percent of Israel's GDP -- twice that which was expected for 2012.
And earlier this week, he also suggested the defence budget could rise even further because of regional developments, notably in Syria.
Beyond the increased expenditure, tax revenues have dropped because of slow economic growth, which is 3.1 percent so far this year compared with 4.8 percent in 2011.
Israeli officials also fear that the major international rating agencies, which had hitherto provided Israel with a clean bill of health, will lower their ratings.
Israel eyes austerity after prosperous year - Yahoo! News