The Bank of Israel warned on Wednesday that unless the government approved spending cuts and raised taxes, the deficit will continue to rise. 

"Bank of Israel projections, based on decisions and programs adopted by the government, forecast expenditures for 2013 to be 9% greater than in the 2012 budget, and NIS 13 billion above the expenditure ceiling…Without significant adjustment of the government budget both a reduction in government commitments to increased expenditures, and higher tax receipts - the debt to GDP ratio is not expected to decline in the coming years," the Bank of Israel stated.