Finance Minister Yair Lapid will need to find NIS 12 billion in budget cuts and NIS 8 billion more in new taxes in 2015 to stick to the country’s fiscal targets, the Bank of Israel said in its annual report, released Monday.

The situation will only get worse further down the line: 2016 will need NIS 20b in cuts and NIS 12b in tax increases, 2017 will need NIS 27b in cuts and NIS 13b in tax increases. Because of the nature of the budgetary rules, which limit increased spending, any of those cases could see lower taxes, but only if they are accompanied by greater cuts.

In 2013, the report said, unexpectedly low costs and several one-time tax injections, such as taxes on major exits and a deal for big companies to release “trapped profits,” helped bring the budget in significantly under its unambitious deficit target.

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