The Bank of Israel has proposed increasing taxes and cutting the budget by 30 billion shekels.

The head of the Bank of Israel expressed the opinion on the need to increase taxes for the stability of the economy in the context of growing security costs. He also emphasized the need for a balanced budget for 2025 with significant cuts. He called it important to develop a clear financial strategy in the context of military action.

The central bank director noted that public spending in Israel remains low compared to OECD countries, so cuts in health, education and social programs are undesirable. He also stressed that it is necessary to consider raising taxes to prevent a further decline in the country's credit rating.

Professor Yaron suggested that inflation would begin to decline by the middle of next year, which would then allow the interest rate to be lowered. His words indicate the need to take measures to maintain economic stability and prevent negative consequences.

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