Fitch says Israel's budget approval reduces political, fiscal risks to economy

Israel Materials 12 November 2021 04:26 (UTC +04:00)

Credit rating agency Fitch Ratings on Thursday said that the recent Israeli budget approval eases political and fiscal risks to the country's economy, Trend reports citing Xinhua.

"The Israeli passage of budgets for 2021 and 2022 affirms the government's capacity to advance legislation," the company noted.

"The budget approval is in line with our expectations when we affirmed the sovereign rating at A+ with a stable outlook in July 2021," it added.

Following Fitch's announcement, Israeli Finance Minister Avigdor Lieberman said that "the approval of the state budget for the first time since 2018 has ensured the stability of the government for the coming years."

He added that the structural reforms in the new budget will support sustainable growth alongside maintaining fiscal frames.

The Israeli parliament passed the 2021 and 2022 state budget last week after marathon votes.

The approval by the parliament was the first of its kind since 2018 when Israel entered a prolonged political crisis, during which Israel witnessed four election campaigns and had to run under an interim budget.