In practice, if we grow at an average rate of  BIS central bankers’ speeches  1  3.75 percent per year, the deficit will decline even more slowly than the path decided upon by the Government, based on the existing tax rates in the existing legislation – that is, even taking into account the increase in the VAT and direct tax rates recently enacted.
According to this estimation by the Bank of Israel, the deficit in the coming year will apparently be 3.5 percent, and will reach a level of 2 percent only in the year 2020. According to this projection, debt will also decline more slowly than the Government estimated when setting the legislation.