This is not an exact science. It is clear, however, that much more can be done in this direction. Finally, when the budget is presented to the Knesset for approval, the basis of growth for 2002 should be reconsidered, as this provides the basis for estimates of tax revenue.
Instead of discussing the probability of a sharp turnaround in the economy’s growth rate next year, the budget could be based on a more modest estimate of say 2 percent, instead of 4 percent, and a certain amount of the government’s approved expenditure could be frozen to ascertain that the target deficit is being met, even if the rate of growth is below the forecast.