Governor Stanley Fischer of the Bank of Israel said, Tuesday, that the government will have to make cuts to the budget and raise taxes after the Knesset elections in January. Addressing a Knesset Finance Committee hearing on the bank's budget for 2013, he said, "It will be difficult to cut but important and taxes will have to be raised." He said his calculations were based economic growth figures for the year.
Committee Chairman Moshe Gafni said the cuts would be big but not as big as those presented by the Treasury. He said taxes should not hit the middle and weaker classes but should be raised, in a measured way, on companies, including financial institutions, and on capital gains, among other things.