CABINET JUST ELECTED SHELLY YACHIMOVICH She is going to sell herself as the champion of social justice. She will lower taxes, build social housing and agree to just about everything Leef & co have demanded. She will make one of her priorities the haredi draft. The next government will probably be led by Led by Labor and include Yair Lapid, Meretz, the remains of Kadima and if she just can't get majority without it will include Likud. Unfortunately unless Bibi can pull off something really special then he is history. The left are gaining strengh thanks to Leef & her protestors and I think we are seeing the begining of the end for Bibi.

Internal squabbles over a budget in a nation is as predictable as the sun setting in the West. A nation must allocate its budget based on the prevailing philosophy and orientation. The dependent sector, i.e. Special Needs People; the Elderly; Homeless; Sick and Injured; Unemployed etc. need to be supported. The taxpayer section must feel that they are not being slung too much. It is up to treasury to draw up a matrix of priorities that conforms to furthering the general welfare of the population. (A combination of reasonable income taxes and a VAT/Sales Tax is the best tax mix for a nation state.) The key is that instead of everyone looking myopically at the ever shrinking pie on the table and waiting for their piece, people must look at the bigger picture. If peace unfolds in the region the GDP of Israel will continue to grow by more than 5% p.a. It will stall if Israel does not see itself as a shareholder in Middle East Inc. As history attests places of stability, order, benevolence and expansiveness always attract people and wealth. The Israeli leaders must not "freeze" in the geo-political headlights right now. Good leadership is dynamic, practical and visionary.

...and they will vote to raise their own salaries. Netanyahu would call that "being responsible", I suppose.

interest rate to cover the deficit . if the budget is cut it wil be deflationery and cause a recession

...but unfortunately the votes are not there this time around for a government of the left. What is more likely (As you kind of suggest) is a grand coalition of secular parties likud, centrists and labor with Bibi still probably PM but moderated by those to his left. Post election a split in likud is possible with its right aligning with Lieberman. A crisis in the national religious camp is also a possibility.