The Ministry of Finance has confirmed a "Globes" report of an alarming jump in the state budget deficit.
Despite problematic deficit figures, the minister of finance is starting to signal an upcoming tax cut. According to a television news report on Friday, Moshe Kahlon said, "There is a large-scale plan for cutting taxes, and I will pursue it, regardless of whether elections are held."
Kahlon did not state what taxes were involved. Despite what he said, it appears that cutting taxes now has elements of election economics. This is made clear by the fact that the Ministry of Finance confirmed on Thursday a "Globes" report that the budget deficit jumped from 2.5% in August to 3.35% in September. This is the first time that the budget deficit has been breached under the current government, leading to a series of consultations in the Ministry of Finance.
Published by Globes [online], Israel business news - en.globes.co.il - on October 14, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018
Moshe Kahlon photo: Ronen Zvulun, Reuters