The Finance Ministry’s figure is four times the previous estimate.
For the first time in years, Israel plans to borrow from foreign lenders with US guarantees. Economically, the move is absurd: in response to a dwindling budget, the country must decrease its expenses rather than continue borrowing. Israel’s international credit rating is high, and US guarantees won’t significantly decrease the loan interest.
Olmert’s government scares the population with a massive deficit in order to lock the next Cabinet into submission to the Obama Administration, which would ask for suicidal political concessions in return for unnecessary loan guarantees.
Israeli budget deficit for 2009 though unpleasant comes as no surprise as in these tough economic times many countries have to take loans. Ideally, the situation should be solved to avoid Israeli budget deficit for 2009 but even if the crisis is said to be over, there are a lot of proofs it is not. And this is merely a result.
Perhaps this deficit in budget adds too the fact that in accordance with the news Israel Haiti says has almost refused from providing any help whatsoever.