The bulk of surplus state revenues should be directed to reducing government debt, and the remainder dedicated to lowering value added tax (VAT) further, Finance Ministry Budget Director Kobi Haber told a gathering of clients of B.S.S.Ch The Israeli Credit Insurance Co.
Haber lamented what he described as the designation of large parts of surplus revenues to increasing government spending in the 1990s, saying that this "hurt growth and created difficulties in the low period that came thereafter."
The government must not increase spending beyond fixed fiscal limits, he warned.
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