Israeli central bank governor critiques government’s budget plan

Published 26/03/2025, 13:24
© Bank Of Israel

Investing.com -- Israel’s central bank governor, Amir Yaron, has expressed concern over the government’s budget plan, approved by parliament earlier this week.

Yaron believes that the budget will not adequately reduce the country’s debt, which has grown substantially due to an 18-month long war.

Prime Minister Benjamin Netanyahu’s spending plan, according to Yaron, includes significant convergence measures this year, primarily on the revenue side.

These measures, Yaron stated, will somewhat balance the increase in fixed expenditures resulting from the war.

Despite these measures, Yaron argued that they are not sufficient to ensure a consistent decrease in Israel’s debt to gross domestic product ratio.

This, he attributed to the fact that some of these measures are temporary and also due to the anticipated rise in structural government expenditures. Yaron voiced these concerns in a central bank report published this week.

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