(Israeli) Defense source: (Israel's) Defense budget must be changed

Globes ^ | 4 March 2003 | Dror Marom

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Defense source: Defense budget must be changed

A top defense source: We decided to how we’d bridge the differences in the first quarter, but no [US] aid arrived.

Dror Marom 4 Mar 03 11:55

“The defense budget must be changed,” a top defense sources said, adding that a decision will be taken before the end of the month.

Minister of Defense Shaul Mofaz claims it is impossible to cut more than NIS 900 million from the 2003 defense budget, compared with the basis for the 2002 budget. He said the Ministry of Finance supports a cut of NIS 4-5 billion, which the source called, “unrealistic, impractical, and inconceivable.”

“No organization can make a 20% cut in its budget,” said the source, “because it’s impossible in one year, and certainly in a year like this. Former Minister of Defense Benjamin Ben-Eliezer accepted a NIS 900 million-defense budget cut for 2003. I’d be reluctant to do it, but orders are orders.”

The source added, “Israel hasn’t be able to obtain urgent financial aid from the US, which would cover the difference between the cut carried out and the one the defense establishment consented to. Everyone assumed external aid would cover the shortfall, but it didn’t happen. The Knesset passed the Ministry of Finance’s budget proposal in its first reading, but we decided to see how we could bridge the gaps during the first quarter.

“If the planned cut in the defense budget is carried out, we won’t be able to fulfill our missions. Essential investment in 10-15-year projects will be halted. We’re talking about projects like the Arrow anti-ballistic missile program. Remember that many of these programs eventually become dollar-earning export items. Halting these projects will cause a brain drain.”

The source proposed a compromise: cut the defense budget, but spread it out over several years. “The US aid will probably not close the shortfall,” concluded the source, “because it will mainly be directed toward matters related to the confrontation with Iraq, such as protecting the population and improving the IDF’s readiness. We asked for $4 billion - the question is how much we will get.”

Published by Globes [online] - www.globes.co.il - on March 4, 2003