BREAKING NEWS

Treasury plans defense, public sector salary cuts

The cabinet on Monday will be asked to approve a fiscal package that includes billions of shekels in tax hikes, but the austerity measures do not end there, it was revealed Sunday. As "Globes" reported on May 21, the Ministry of Finance is planning billions of shekels in cuts to government ministries' budgets within weeks, because of breaches of spending frameworks.
Excess spending already totals NIS 15 billion. The cut in ministries' budgets will reportedly total NIS 5 billion. However, it should be noted that the government recently passed a NIS 700 million across-the-board budget cut, which will be increased to NIS 1 billion in 2013. An already planned NIS 500 million budget to the 2013 budget should be added, so that the excess spending, after the budget cuts, is currently NIS 13.5 billion. According to Ministry of Finance estimates, the tax hikes will generate NIS 12 billion in revenues in the 2013 budget.
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