Governor Karnit Flug says tax windfall should be used to boost governments low levels of education, infrastructure spending.
With early elections in the air, Netanyahu and Finance Minister Kahlon issued a plan for cutting taxes. But their dispute over Israel's new public broadcaster put their promise on the back burner.
A strong shekel is of particular concern to Israeli exporters, who are faced with earning less, in shekel terms, for what they sell abroad.
Agreement to bring in thousands of Chinese building workers also signed on second day of Israeli prime minister's visit.
Overall inflation unchanged in February, statistics bureau says
Foresight soars after Mobileye-Intel deal; Welfare minster cited by Securities Authority lawyer for possible ethics violations; Assets grow 3.6% in 2016; Tel Aviv shares end lower as bank rally stalls.
Treasury sources say the measures will include lower personal and corporate tax rates and a reduction in VAT.
Budget figures increase likelihood finance minister will act on promised tax cuts.
Trade deficit narrowed but foreign direct investment rose.
The percentage of older people working increased significantly over the past 10 years because the retirement age has been gradually increased.