Yair Lapid
Photo: Yaron Brener
Lapid: Close to reaching budget deal with PM
Reports indicate Lapid agrees to NIS 6 billion addition to defense; S&P shows 'vote of confidence' with A+ credit rating for Israel.
Finance Minister Yair Lapid said Saturday he was close to reaching an agreement with Prime Minister Benjamin Netanyahu on the 2015 budget.
"We believe we're close to an agreement. The objective is to present the budget to the government as early as possible so we could move on to improving the Israeli economy and the situation of Israeli citizens," Lapid told reporters outside his Tel Aviv home.
Finance Minister Yair Lapid. (Photo: Itay Blumenthal)
The finance minister refused, however, to address reports that understandings have been reached on the deficit and the approval of his zero percent VAT initiative.
It was reported on Friday that Lapid and Netanyahu have agreed on a NIS 6 billion injection to the 2015 defense budget, and a 3.4 percent increase to the deficit.
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"The reaffirming of Israel's credit ratings by S&P is a vote of confidence in the Israeli economy," Lapid said about Standard & Poor's Ratings Services' decision to affirm its A+ foreign currency credit rating for Israel with a "stable" outlook.
"It is an affirmation of faith in the steps we are taking now and the steps that we took in the previous budget. They were hard, they were not simple, but they brought us to the point that we could handle the longest military operation in 30 years and at the same time present a social budget without tax increases and a zero percent VAT, as well as additional steps in education, health, welfare, and entertainment."
Netanyahu also addressed the S&P's rating Saturday, repeating Lapid's sentiments and saying that, "We will continue to show the international markets that we intend to continue (our) responsible policy so that Israel's credit rating will remain high. This is something that has great impact on the stability and prosperity of our economy."
Lapid also said that he would meet the prime minister on Sunday to continue working on the 2015 budget. "There is an ordered structure to the work with the aim of presenting the budget as soon as possible."
In recent days, joint teams on behalf of Lapid and Netanyahu have worked around the clock to finalize an agreement; sources have signaled that the zero percent VAT on a first apartment would be approved, even as taxes remain at the same level.
Last Tuesday, Lapid spoke to Ynet saying that he would dismantle the current government before he would agree to increasing taxes. "I can't imagine that Netanyahu would freeze the 0% VAT act," he said.
Lapid also reminded Ynet that Netanyahu had himself voted for the proposal. "The prime minister, who's a very experienced man, knows that no one will bring down a government that starts breaking promises - it will bring itself down."
