• Moshe Kahlon on Monday blamed the spike in the country's budget deficit this year on errors in revenue forecasts and two general elections.
• Kahlon told a news conference the 2019, deficit would be 3.5-3.6pc of gross domestic product, above an initial target of 2.9pc.

Kahlon told a news conference the 2019, deficit would be 3.5-3.6pc of gross domestic product, above an initial target of 2.9pc.

The deficit stood at 3.8pc of GDP in August over the prior 12 months. "What happened with the deficit was a mistake with forecasts.

It wasn't a mistake that we spent the money. We didn't spend the money.

There was simply a mistake in forecasts," he said. Kahlon, whose position as minister is up in the air in the wake of last week's election, said big steps to rein in the deficit would only be made once a government was formed.

He added that raising taxes would only be a last resort.