Bank of Israel Governor Stanley Fischer on Thursday said the Yair Lapid's budget proposal was "brave," adding that despite its complex reorganization of both revenue and expenditure, it sets a responsible path forward.
"As I said when I expressed support for putting the deficit for 2014 at 3%, the decision requires painful steps. Naturally, the broad public feels mostly the hurt that every household in Israel will experience as the result of the implementation of the program. However, it's important to remember that we cannot meet a budget challenge while only focusing on this sector or that population," he said.
"As the finance minister said, the entire public will have to bear the burden. At the end of the day, restoring fiscal stability will strengthen the economy's resilience to shocks, help the economy realize its growth potential, and support the public's welfare as a whole."
The Governor also said that if the government decided to increase the defense budget, it would have to find a way to offset it in order to maintain the overall budgetary framework.