Steinitz at budget: taxes will increase

Finance minister: Public to pay higher taxes to cover deficit.

steinitz 311 (photo credit: Ariel Jerozolimski)
steinitz 311
(photo credit: Ariel Jerozolimski)
The government is to impose cuts on the public and increase taxes to a total of 8.8 billion shekel in the next two years according to a treasury report published Sunday.
According to the report the deficit will force an increase in taxes and ministry budget cuts including The Ministry of Defense. Government economic data suggests that taxes will need to be raised to a total of 5.4 billion shekel in 2011 and 3.4 billion in 2012.
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Finance Minister, Yuval Steinitz, presented the principals of the budget and stated that the policy will focus on strengthening higher education, promotion of industries and the work place.
The program states that government expenditure will increase by 2.66% (addition of 12 billion shekel in two years) and will reach 265 billion shekel by 2011 and 272 billion by 2012.
Steinitz also rejected ministers' demands for a budget increase on the basis that all around the world budgets are being cut, wages reduced and taxes increased.
Steinitz said that Israel can allow itself to increase the budget but it will not be possible to answer all the demands being made by the different ministries.