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Briefing

Israel: Fiscal Policy

Appears in: Middle East and Africa, Geostrategy, Macroeconomy, Israel, Energy Security and Policy, Fiscal Policy

Critical Issues

Background:

On July 16, 2009, Knesset passed the 2009-2010 Budget Law, setting Israel's budget for two years for the first time. The budget assumed a deficit of 6.0% of GDP in 2009 and 5.5% of GDP in 2010, and further increased government spending for 2009-2010. After faltering due to a decrease in economic activity, higher increase in certain taxes, most notably the gasoline tax and higher growth.

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Associated Readings

Research IMF Xavier Debrun, Natan P., Epstein and Steven A. Symansky April 2008 A New Fiscal Rule: Should Israel go Swiss?

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