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Israel Gets an ‘F’ in Finance

20 3 0
14.01.2020

Today it’s clear that Moshe Kahlon is a failure. He was a terrible finance minister who left us a large and dangerous deficit and an economy whose growth is slowing. That’s why he’s going home.

But he’s not alone. Prime Minister Benjamin Netanyahu is equally responsible for the failure. The large 2019 deficit – 52 billion shekels (nearly $15 billion) – is their handiwork. This deficit wasn’t created by a recession or a global crisis, but during a period of reasonable growth and full employment. It’s an intrinsic deficit, a huge pit that will be hard to fill.

Kahlon and Netanyahu acted like a family that chronically lives beyond its means and then takes loans to finish the month. They raised expenditures irresponsibly, well beyond the income from taxes, and took huge loans to finance the deficit they created. One day the bank will wake up and force that family to cut expenses, and similarly the government will also be forced to cut back. The harsh data the treasury presented on Sunday proves this.

During the first three years of his tenure, Kahlon was incredibly lucky. He increased expenditures freely and gave........

© Haaretz