New Israeli Finance Minister Says Budget Focus Will Be on Growth

Israel’s budget proposal is set to focus on growth and will also provide relief to the public, according to the country’s new finance minister.

(Bloomberg) — Israel’s budget proposal is set to focus on growth and will also provide relief to the public, according to the country’s new finance minister.

“We are facing a difficult period, but I see it as an opportunity to fortify the State of Israel as a stable, strong and responsible market,” Bezalel Smotrich said at a government conference on Tuesday. “Populist moves that exceed the budget ceiling could put all of us in a tailspin and hurt Israel.” 

Smotrich, a cabinet member in the government of newly appointed Prime Minister Benjamin Netanyahu, inherited a budget that was back in surplus last year for the first time in over a decade.

But Israel’s economy is set for a slowdown in 2023. The central bank’s research team revised down its outlook at the beginning of the month, predicting that gross domestic product will expand by 2.8% this year, compared to 6.3% last year.

Smotrich said that fiscal and monetary policy will be coordinated.

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