Lapid to Ynet: Possible to reach compromise on 2015 budget
As tensions run high between Netanyahu and Lapid over Israel's next budget, Lapid talks to Ynet, reiterates promise not to raise taxes to foot bill.
"We can reach an understanding regarding the budget," Finance Minister Yair Lapid told Ynet on Saturday ahead of his Sunday meeting with Prime Minister Netanyahu.
Finance Minister Lapid and Netanyhau have been at odds as of late over the 2015 budget, with two clashing over the need to either raise taxes or increase the deficit to cover increased defense spending. Also, Netanyahu recently told ultra-Orthodox MKs from the opposition that he does not support Lapid's flagship legislation in the housing field.
Elaborating on his claim, Lapid said "one the one hand we need to give the combative forces extra funding, and preparing the IDF for future challenges, but we also need to take into consideration the needs of Israeli citizens and add funding to social issues. Therefore there is no way we can raise taxes and further burden our citizens.
"By not raising taxes we make life easier and foster economic growth and help the market," he said.
Earlier Saturday, Yair Lapid's deputy and chairman of the Yesh Atid faction, MK Ofer Shelah, said that Prime Minister Benjamin Netanyahu's behavior surrounding the looming 2015 budget could lead Israel to an early election.
One of the central issues facing the 2015 budget is balancing Israel's deficit whilst raising the defense budget. At the beginning of the week, Netanyahu said he wants Israel to keep the deficit as is, while Lapid is adamant on not raising taxes – the only alternative if the defense budget will increase.
Lapid is also fighting to see his 0% VAT bill - which will exempt young couples from paying the tax when purchasing a home - pass. Netanyahu is opposed said to be opposed to the latter and prefers rising to taxes to expanding the deficit.
On the backdrop of tensions between the two over the budget, the details of which have yet to be published, the government's weekly meeting Sunday has been canceled, for the third week in a row. Instead, Lapid and Netanyahu will meet Sunday to try and reach a compromise.
The sides exchanged accusation regarding the meeting's cancelation, with a source within the Prime Minister's Office saying that "the meeting was postponed because of the need to conduct marathon discussions regarding the budget – a result of the fact that the current budget simply does not address the threats without raising the deficit," which Netanyahu will not abide.
A source close to Lapid said in response that it was Netanyahu was fault: "When the prime minister will decide what he wants, we will have budget in three hours. The problem is that Netanyahu – in classic Netanyahu fashion – is dragging his feet and having a hard time deciding. He is agonizing over the decision, so we're stuck."
Attila Somfalvi contributed to this report
