Bank of Israel Governor Amir Yaron makes a final plea to Prime Minister Benjamin Netanyahu to maintain fiscal discipline ahead of a cabinet vote on a revised 2024 budget to incorporate enormous funding increases for the war with Hamas.
Yaron has for weeks been urging the government not to spend excessively and offset any spending increases needed for the war with reductions elsewhere, along with tax hikes – items that government leaders have dismissed.
“There is no free lunch,” Yaron writes in a letter to Netanyahu that was seen by Reuters, stressing that markets are watching fiscal policymakers.
Yaron says the letter encompasses what he told Netanyahu at a meeting between the two last week.
He estimates the Gaza war will cost NIS 210 billion ($56 billion) for defense and compensation, excluding loss of income for residents near the Gaza and Lebanese borders who have been displaced by months of cross-border rocket fire.
Israel last year approved a two-year budget for 2023 and 2024, but the war against Hamas in Gaza has shaken government finances, requiring budget changes and additional spending.
Help us report truthfully on social media
As a multimedia journalist, my job is to take the quality, fact-based journalism produced by The Times of Israel newsroom and make it accessible across every platform — from Instagram posts to podcasts to short-form videos.
This is how many, especially young people, consume news these days. But misinformation is rampant on social media. Our team at ToI produces accurate, responsible short-form reporting on Israel and the Jewish world.
If you believe in the importance of factual social media journalism, please consider joining our reader support group, The Times of Israel Community. Your financial support is essential to sustain responsible multimedia reporting.
— Gabriella Jacobs, multimedia journalist
Support our work
Support our work
Already a member? Sign in to stop seeing this
You're a dedicated reader
We’re really pleased that you’ve read X Times of Israel articles in the past month.
That’s why we started the Times of Israel - to provide discerning readers like you with must-read coverage of Israel and the Jewish world.
So now we have a request. Unlike other news outlets, we haven’t put up a paywall. But as the journalism we do is costly, we invite readers for whom The Times of Israel has become important to help support our work by joining The Times of Israel Community.
For as little as $6 a month you can help support our quality journalism while enjoying The Times of Israel AD-FREE, as well as accessing exclusive content available only to Times of Israel Community members.
Thank you,
David Horovitz, Founding Editor of The Times of Israel
Join Our Community
Join Our Community
Already a member? Sign in to stop seeing this
From the Liveblog of
Wednesday, January 10, 2024
Add ToI as a Preferred Source on Google
