STATE OF ISRAEL
MINISTRY OF FINANCE
INTERNATIONAL AFFAIRS
DEPARTMENT
July 1, 2012
Press Release
Cabinet approves Minister of Finance’s proposal to increase the deficit target
and revise the outline for reducing the deficit in 2013-2019
The Cabinet has approved Minister of Finance Dr. Yuval Steinitz’s proposal to
increase the deficit target and revise the outline for reducing the deficit in 2013-2019.
The outline will continue to strive for reducing the debt to GNP ratio to
approximately 60% in 2020. The change in the outline does not change the rule for
limiting the increase in the budgetary expense under the Reduction of Deficit and
Limitation of Budgetary Expense Law, 5752-1992.
The revision in the outline for reducing the deficit is as follows:

In 2013, the deficit will not exceed 3%

In 2014, the deficit will not exceed 2.75%

In 2015, the deficit will not exceed 2.5%

In 2016, the deficit will not exceed 2%

The deficit will reach a level of 1.5% in 2019 and thereafter
The deficit ceiling limitation is a multiyear limitation set forth in the Fiscal
Frameworks Law. At times, changes occur in the economic parameters and
circumstances that have budgetary implications that are not in line with the outline set
forth in the law. Therefore, the Ministry of Finance will formulate a package of steps
that are necessary in order to create congruence between the government spending
1 Kaplan St. Jerusalem 91030,
English: www.financeisrael.mof.gov.il
-1P.O. Box 3100,
Tel: 02-5317200,
Fax: 02-5695349
Hebrew: www.mof.gov.il
outline and the deficit outline in accordance with the Fiscal Frameworks Law and the
parameters derived from macro forecasts, tax policy and total liabilities.
Finance Minister Dr. Yuval Steinitz: “The new deficit outline that was approved by
the Cabinet today preserves the fiscal responsibility that we have maintained up to
now. It is in line with global economic conditions on the one hand and enables us to
continue to strive towards a debt to GNP ratio of approximately 60% by the end of
the decade."
1 Kaplan St. Jerusalem 91030,
English: www.financeisrael.mof.gov.il
-2P.O. Box 3100,
Tel: 02-5317200,
Fax: 02-5695349
Hebrew: www.mof.gov.il