"The Israeli economy is going through a difficult period. We're facing a problematic combination of a global crisis and political instability. We have indicators that show that the situation in the West will cause slower growth in Israel," said Minister of Finance Ronnie Bar-On told the cabinet during the budget discussion.
Bar-On continued, "This slowdown is already seen in unemployment figures and tax receipts. This political instability must be addressed. For several months, we stuck to the target of keeping at all costs economic policy away from the political game.
"If the government doesn’t want the budget, there won't be one, but, by law, I must present a budget. I don’t have the privilege of dealing in mathematics and calculating whether the budget will pass or not. My primary consideration is the good of the economy.
"The Ministry of Finance has demonstrated responsibility in the face of the unprecedented huge demands from the coalition and the dangerous and spendthrift private legislation, all of which are aimed at increasing national spending. The effort to save the economy is behind our decision to present the budget today."
Bar-On added, "This discussion is being held with the Prime Minister's Office. We have a huge accumulation of debts that we must pay or void, while simultaneously keeping a responsible budget that supports growth. You know what I know about politics. I am aware of the instability and weakness of the political system."
Bar-On concluded, "We must set a benchmark. The alternative of not presenting the budget is the one-twelfth method (i.e. monthly budgets based on the previous year's budget). All these considerations require me to present the budget and try to get it passed as best I can. I hope that we'll be able to separate politics from economics.
"My priorities are clear, and I told the prime minister - give priority to social affairs and cut the defense budget.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2008
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