Bethel Finances: Barak's proposal will cause mass unemployment

www.bethelfinance.com

Minister of Finance Yuval Steinitz has slammed a proposal by Minister of Defense Ehud Barak to increase the deficit by 0.9% to meet social demands and increase the defense budget by NIS 35 billion over the next five years.

"Israel handled the economic crisis, and succeeded in resuming growth thanks to the government and Ministry of Finance's economic policies, including fiscal responsibility," said Steinitz. "The populist proposals to breach the budget are liable to lead Israel to economic decline and mass unemployment."

In a separate statement, the Ministry of Finance said, "The defense minister's proposal would mean mortgaging Israel's future to huge debts and jeopardizing its economic stability. One of the paramount principles that brought Israel economic stability is the responsible fiscal policy and keeping the budget framework. At this point in time, in view of the economic crisis in the US and Europe, Israel must preserve this economic policy."