Bank of Israel criticises government’s defence spending plans


Israel’s central bank has criticised the government’s plans to increase defence spending over the next decade without introducing tax increases.

In an analysis of Israel’s fiscal policies published on August 22, the bank repeated its previous criticisms of the priorities of Benjamin Netanyahu’s conservative coalition government. The government intends to raise defence spending by pegging it to GDP growth over the next decade.

The Bank of Israel estimates increased spending without higher taxes

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