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Israel cuts 903 mln USD in state budget to reduce high deficit

Source: Xinhua| 2019-06-14 03:18:21|Editor: Mu Xuequan
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JERUSALEM, June 13 (Xinhua) -- Israel's Ministry of Finance announced Thursday that it will take several measures and cut 3.25 billion new shekels (903 million U.S. dollars) to curb the deviation in high budget deficit.

According to forecasts by the ministry, without the new cuts or taxes, the deficit would reach 4 percent of the gross domestic product (GDP) in the coming year.

Now, because of the new cuts and tax increases, the deficit is expected to stand at 3.8 percent.

According to the ministry's plan, the purchase tax on hybrid and electric vehicles will be gradually abolished, expected to save 139 million dollars in 2020. The amount is expected to double in the following year.

Now the average purchase tax on a regular vehicle in Israel is 83 percent, while on hybrid vehicles the tax is only 30 percent.

In addition, a tax will be imposed on inflammable solvents, which will save an additional 125 million dollars.

The Ministry of Finance will also require 41.7 million dollars from Israel's National Lottery, alleging it exceeded its expenses.

The plan is a temporary solution to reduce the high deficit, while a permanent solution, which is expected to include more cuts and taxes, will come after the general elections on Sept. 17, by the new government to be elected.

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