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Bank of Israel Warns: Defense Spending Risks National Debt

3/12/2026

47 9 Full Breakdown

Summary

Story summary

Bank of Israel warns against expanding the national deficit while funding the war.
The revised budget adds 32 billion shekels for defense, lifting the deficit target to 5.1% of GDP.
The Bank of Israel cautions that tax cuts and VAT exemptions could worsen public debt and urges against non-war programs.
Parliament must approve the budget by the end of March to prevent new elections.

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Story summary

Bank of Israel warns against expanding the national deficit while funding the war.
The revised budget adds 32 billion shekels for defense, lifting the deficit target to 5.1% of GDP.
The Bank of Israel cautions that tax cuts and VAT exemptions could worsen public debt and urges against non-war programs.
Parliament must approve the budget by the end of March to prevent new elections.