Demonstrators burn posters outside finance minister’s home

Dozens of people gathered outside the home of Finance Minister Yair Lapid in Tel Aviv Saturday to protest recently approved cuts to the state budget.

A number of demonstrators set fire to banners while chanting “burn the budget” and shouting slogans against Lapid and Prime Minister Benjamin Netanyahu, according to eyewitness reports.

Earlier this month, the Knesset okayed on first reading the 2013-2014 state budget, which includes a number of austerity measures designed to rein in the country’s budget deficit.

The bill moved to the Knesset’s Finance Committee, where it is expected to face an uphill battle and many changes, ahead of second and third readings in the plenum.

The accompanying Economic Arrangements Bill also passed on first reading.

Last month, the Finance Ministry approved a series of measures aimed at cutting government spending by some NIS 6.5 billion (almost $2 billion) in 2013 and by NIS 18 billion (some $5 billion) in 2014, largely through cuts in defense, child benefits (NIS 2 billion, or $560 million) and transportation infrastructure projects (NIS 1.2 billion, or $336 million).

Those measures are meant to slash a burgeoning national deficit that in 2012 reached NIS 39 billion ($11 billion) — 4.2 percent of the gross domestic product.

The treasury’s budget proposal also increased income tax by 1.5% across the board, and boosted corporate tax to 26%. The Knesset already approved raising the value added tax from 17% to 18% at the end of May.

The budget also includes a NIS 9 billion ($2.5 billion) increase to the Education Ministry and a NIS 3 billion ($834 million) boost to the Health Ministry, as well as funds dedicated to increasing ultra-Orthodox employment.

Lapid’s home has been the site of several weekend protests over the proposed cuts and tax hikes in the budget.

Ron Friedman and Ilan Ben Zion contributed to this report