Bank of Israel's Monetary Policy Report: Massive cut necessary due to the high cost of multiyear plans adopted by the government.
"A massive cut is necessary in the 2013 state budget to prevent exceeding the spending cap mandated by law, which allows a 5% growth in real terms in public spending," says the Bank of Israel today in its Monetary Policy Report for January-June 2012.
The Bank of Israel adds that the massive cut is necessary "in view of the high cost of the multiyear plans adopted by the government." In an extraordinary fashion, it warns, "The expansion of budget commitments in 2013 and the slowing growth rate in 2013 will make it difficult for the government to meet its deficit targets for the next two years."
Published by Globes [online], Israel business news - www.globes-online.com - on August 7, 2012
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