Fischer warns PM against raising budget deficit

By NADAV SHEMER
June 28, 2012 16:38

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Bank of Israel Governor Stanley Fischer spoke out Thursday against Prime Minister Binyamin Netanyahu’s plan to raise the budget deficit target to 3 percent of gross domestic product, warning that the move could have disastrous consequences.

Speaking at the Israel Democracy Institute’s annual Caesarea Forum at the Dead Sea, Fischer said the deficit was likely to reach 3.5-4% this year and pointed out that in 2009 it rose from 0% to 5% almost instantly due to unexpected tax revenue shortfalls. If such an event were to occur again, he warned, the deficit could reach 7-8%, “and we would not be able to deal with that.”

“The last time that happened we turned to our rich uncle for guarantees. Today that rich uncle is less friendly,” Fischer said, in apparent reference to the $9 billion in loan guarantees the US offered Israel following the economic downturn in 2003. “It is not healthy for a state that is proud of its sovereignty to turn to external actors every time there is a problem. I would prefer that we stand on our own two feet.”

Related Content

Breaking news
July 20, 2018
Bulk of families separated at U.S.- Mexico border remain apart

By REUTERS