Israel's 2014 budget will absorb cost of Gaza conflict — finance minister

TEL AVIV — Israel's 2014 budget will be able to absorb the costs incurred during the 

monthlong Gaza conflict and there will be no need to raise taxes, Finance Minister Yair Lapid said on Thursday. Lapid added that it would take a week or two before the government could determine the total impact of the conflict on the economy. "Israel has a very strong, sustainable economy. We are more than capable to digest this operation into the 2014 budget," Lapid told Reuters. "Of course it's an expense we didn't expect, but then again, why have a strong economy if not for these occasions in which you have to react to the unexpected." Lapid earlier told a news conference: "Taxes will not be raised." He noted that the budget deficit target for 2014 was 3 per cent, and that prior to the monthlong military operation, the actual deficit was running at less than 2.6 per cent. "This means we have room below the target for unexpected expenses," he said. Lapid added the government was acting swiftly to compensate local businesses that were hurt during the military campaign.