Netanyahu and Lapid
Netanyahu and Lapid Flash 90

Prime Minister Binyamin Netanyahu and Finance Minister Yair Lapid agreed on Wednesday afternoon on a compromise regarding the state budget for 2015.

According to the compromise, the defense system will receive another 6 billion shekels as an addition to the 2015 budget (the defense budget in 2015 will be 57 billion shekels) and another 7-8 billion shekels to cover the expenses of Operation Protective Edge in Gaza this past summer.

In addition, it was agreed that the deficit for the 2015 budget proposal as presented to the government will be 3.4% and will not include tax increases.

Netanyahu and Lapid have been at odds over the state budget for 2015.

Netanyahu last week called for an increase of "many billions" of shekels in defense spending following Operation Protective Edge, while Lapid has downplayed the expense of the operation and pushed for a modest defense budget.

The tensions led Netanyahu last week to suspend discussions over Lapid's controversial 0% VAT Bill that is opposed by hareidi and Arab parties, in a not-so-subtle move to pressure Lapid into greater flexibility.

The tension was so great that political sources told Arutz Sheva this week that Lapid is looking into the possibility of leaving the government and becoming head of the opposition. The sources revealed that several members of Yesh Atid spoke with members of the Arab parties and Meretz and asked if they would agree to make Lapid opposition head.

(Arutz Sheva’s North American desk is keeping you updated until the start of the Rosh Hashanah holiday in New York. The time posted automatically on all Arutz Sheva articles, however, is Israeli time.)