Israel cb criticises govt over deficit dangers

Israel's central bank has criticised the government over its handling of the budget. The Bank of Israel said the Israeli government needed to make substantial cuts to the budget to reach its 2003 budget deficit target.

The bank added that the two-year uprising by the Palestinian people had affected the Israeli economy more than the global economic slowdown.

The country's recession, which has lasted more than two years, has hit tax revenues, while unrest has prompted a rise in defence spending