Lapid trying to push gov’t toward elections, sources say

Finance Minister Yair Lapid has deliberately proposed an “unacceptable” budget in order to push the government toward new elections, according to sources close to Prime Minister Benjamin Netanyahu.

The sources told Channel 2 on Friday that the reason behind Lapid’s insistence on a budget that the government could not accept was that he wanted new elections to be held.

Though Lapid has denied that these are his intentions, the sources said the finance minister is well aware that his proposed budget is likely to cause a rift within the coalition rather than be accepted by it.

If such a scenario plays out, Lapid’s party, Yesh Atid, could leave the coalition — possibly to be replaced by ultra-Orthodox parties.

Lapid’s insistence that taxes should not be raised, even if additional funds are necessary to cover the costs of Operation Protective Edge and securing Israel’s southern border, has caused a stir in the government as Netanyahu and the finance minister remain at odds over the 2015 budget.

Last week, coalition chairman MK Yariv Levin (Likud) urged Netanyahu to consider a reorganization of the coalition, asserting that Lapid’s party may have to be pushed out of the government.

“We have to consider the possibility of a change in the composition of the coalition, by the inclusion of the ultra-Orthodox parties,” Levin said during an interview with Channel 10. “It might be that there will be no choice but for Lapid to leave [the government].”

Earlier that week, the finance minister threatened to pull out of the coalition if taxes were raised to cover the costs of the 50-day Gaza operation, estimated at $2.5 billion.

Amid mounting criticism of his fiscal plan for the 2015 budget, Lapid said, “I will not sit in a government that goes again and places its hands in the pockets of Israeli citizens when there is no real need for it.”

“I am the finance minister, I know the numbers, there is no reason or need to go once again and take money from the pockets of Israeli citizens,” he told Channel 2.

Levin, for his part, stated last week that “this coalition can function if the partners want it to … [but] if [Lapid’s] flippant, irresponsible and even childish, behavior continues, then we may definitely have to consider the possibility of a change in the coalition.”

The finance minister has repeatedly stated over the past week that raising taxes as a result of the 50-day military campaign against Hamas was a wrong move, pushing instead to increase the deficit cap to 3.5% of GDP in the 2015 budget to cover the defense spending.

Bank of Israel head Karnit Flug, Netanyahu, and Economy Minister Naftali Bennett have all publicly opposed the plan.

Times of Israel staff contributed to this report.