The news is reporting that the month of March saw another significant drop in the deficit. The budge deficit relative to the GDP dropped to 1.4%. It now stands at the lowest it has been in 14 years, since 2008.

Tax increases seem to have filled the coffers with fewer outlays in the forms of grants and Corona stimulus packages that we saw in the past couple of years. In general that is a good thing. I would love to see somewhat smaller government with less waste in that regard but that is not going to happen too quickly. 

In the meantime the filled coffers can start to be used to lower other taxes... will that happen? we wait and see.

At the same time Moody's just upgraded Israel's economic outlook to positive with A1 status.

This Israeli government must be doing something right on the economic side of governance.

Now it is time to actually do something to cut the high cost of living. People dont care much about the level of credit rating or deficit if they have to pay through the roof for their goods and services. People care more about what is in their pockets at the end of the month.The government needs to cut monopolies, fix the shipping and ports problems that are causing price increases. Lower taxes where possible. etc. Take advantage of the strong economic situation and act to benefit the people.