New Israeli Finance Minister Yair Lapid, who faces a budget deficit as a primary challenge for the current Israeli economy. Photo: Yesh Atid Party.

Globes  – The cabinet today approved a deficit target of 4.65% of GDP of 2013 and 3% for 2014 as submitted by Minister of Finance Yair Lapid. The target means a deficit of NIS 46 billion. All the cabinet ministers voted in favor of the proposal except Minister of Environmental Protection Amir Peretz who abstained.

On Thursday, Lapid caused an outcry when it was learned that he proposed raising the 2013 deficit target to 4.9% of GDP. This would be the first time since 1985 that the government would not meet its spending cap. “Globes” reported yesterday that neither Prime Minister Benjamin Netanyahu nor Governor of the Bank of Israel Prof. Stanley Fischer was notified of Lapid’s decision.

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