The Finance Ministry announced Sunday that the 2015 state budget that it is presenting to Prime Minister Binyamin Netanyahu on Sunday will include a 3.18 percent deficit and does not include a tax increase.
"The Finance Ministry maintains that, in light of the indicators pointing to a slow-down in the economy, it would be imprudent to raise taxes," a statement from the Treasury read.
"The Finance Ministry stresses that the defense establishment's request for additional funds must be answered while maintaining the established spending framework.
The Treasury stated further that the budget being presented to Netanyahu is "balanced and fills the Defense Ministry's needs, as well as the country's social and civilian needs."
Netanyahu was expected to hold a marathon discussion of the budget with Finance Minister Yair Lapid and Bank of Israel Governor Karnit Flug on Sunday in an attempt to decide how to pay for an additional NIS 30 billion for the Defense Ministry for the coming years as a result of the costs of Operation Protective Edge.
Netanyahu has called for the defense budget to be increased while maintaining a deficit of less than three percent.