In order to ensure that the budget framework remains intact, the extra spending or lost income implicit in these decisions will be covered by an across-the-board spending cut of 1% encompassing all ministries-excluding defence, education and welfare, which are the biggest spenders. Mr Steinitz is also looking into the possibility of deferring the cuts in income tax scheduled for 2012, either on corporations or individuals in the top income brackets. Given the current high level of tax revenue, this may not be necessary and Mr Steinitz reiterated his personal commitment to reducing direct taxes in a speech on February 21st. However, the mere fact that it is being considered represents a conceptual volte-face for the Netanyahu government and reflects growing opposition, even within Likud ranks, to a fiscal policy that seems to favour higher indirect taxes-hurting low-income households-while lowering direct tax rates, to the benefit of upper-income groups.