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Lapid defends 2015 budget against critics branding it unrealistic
Israel’s Finance Minister Yair Lapid defended his draft 2015 budget, which he presented earlier this week, after it was criticised by political opponents.
Plans to present the annual budget to the cabinet and the Knesset were behind schedule due to Operation Protective Edge. Factoring in the significant cost of the campaign has been a sharp point of contention between Lapid and Prime Minister Benjamin Netanyahu, who only agreed on the details of the 2015 budget last week. Lapid vehemently opposed increasing taxes, as favoured by Netanyahu, with the middle-class forming the base of his Yesh Atid party’s support. Instead, they eventually agreed on an increased deficit of 3.4 per cent.
On Sunday, Lapid hailed the budget as one of “hope and promise,” saying that, “This is a budget delivering good news … without tax increases, with extra money not only for defence but also for social ministries, a budget that gives resources over to education, health, welfare.” The budget is also set to include Lapid’s flagship legislation to scrap VAT for many first-time home buyers.
However, the draft budget was immediately criticised by various political voices. A Labour Party statement said, “He promised Israeli citizens everything, apart from a trip to the moon … but Lapid neglected to tell the public one thing: Where does he intend to get the money?” Knesset Finance Committee Chairman and Jewish Home MK, Nissan Slomiansky also expressed scepticism, saying, “it remains a mystery where the money that Lapid has been speaking about will be coming from.” Slomiansky added that, “It lacks any growth drivers [for the economy].” Meanwhile, Environmental Protection Minister and Hatnua MK Amir Peretz criticised his coalition colleague, saying that Lapid’s budget will not help the weakest members of society.
Yesterday though, Lapid hit back, telling Army Radio, “The fact is, the numbers add up.” He added that critics can’t complain both when cuts are made and when spending is increased. The cabinet is set to consider the budget next week.