Finance Ministry austerity plan revealed: Rent tax and tax credits for parents

Detailed summary

Despite the lack of a government, senior Finance Ministry officials are already preparing the 2027-2028 budget, seeking austerity measures to cover massive defense spending.

These days, the state budget was supposed to enter the home stretch ahead of votes in the Knesset. In the meantime, however, there is no government in sight, no one knows when one will be formed, and a new budget seems very far off. Despite the political uncertainty, the Finance Ministry is already working on the next budget, which will likely be a two-year budget for 2027-2028. The task is not simple: Dealing with massive defense expenditures, the heavy deficit, and the possibility of a reduction in US defense aid.

Opening of the article, excerpted from The Jerusalem Post. To read the rest, open the article on the publisher's site.