“Decisive” meeting on (Israeli) defense cuts to continue

Globes ^ | 10 March 2003 | Zeev Klein

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“Decisive” meeting on defense cuts to continue

Finance Ministry insists on NIS 5.5 billion in defense budget cuts. Defense Minister Shaul Mofaz is opposed.

Zeev Klein 10 Mar 03 16:57

Prime Minister Ariel Sharon convened a meeting to discuss the Ministry of Finance’s demand for a deep cut in the defense budget. The meeting, attended by Minister of Finance Benjamin Netanyahu and Minister of Defense Shaul Mofaz, ended without results. It was agreed that Minister without portfolio Meir Sheetrit would meet Ministry of Defense director general Amos Yaron and other defense establishment officials tonight to try to resolve matters.

It was also agreed the Netanyahu, Mofaz, Sheetrit, and IDF Chief of Staff Lt.-Gen. Moshe Yaalon would hold a working meeting at the Ministry of Finance tomorrow.

Sharon will have to make a decision about Mofaz’s appeal against the budget cut, on the grounds that it cannot be implemented on the eve of a war in Iraq. Yaron and defense establishment officials presented all their arguments against the budget cut at last night’s meeting, although the meeting was defined as “only a presentation”.

The Ministry of Finance insists that the NIS 5.5 billion defense cut decided on by the cabinet and Knesset two months ago be carried out. The defense establishment wants the cut to be cancelled, which would mean a NIS 5.5 billion addition to the defense budget.

The defense establishment has so far ignored the budget cut, and has already exceeded its approved budget by NIS 1.5 billion in the first quarter of the year. At this rate, the defense establishment will exceed its approved budget for 2003 by at least NIS 6 billion.

The Ministry of Finance says a decision must be taken quickly, otherwise the planned cut in the 2003 budget will have to be increased by at least another NIS 5.5 billion, to NIS 18-20 billion. The ministry adds painful budget cuts must include the defense budget as well. If the defense budget is not cut, the cut will fall on the civilian and infrastructure investment budget items.

The Ministry of Finance wants to cut the defense budget by an additional NIS 1.5 billion as part of the NIS 10 billion budget cut under the new economic plan. The plan will probably be submitted to the cabinet for approval toward the end of March.

Published by Globes [online] - www.globes.co.il - on March 10, 2003

[anotherview]

That Israel would even have to consider defense cuts during wartime is a real indicator of just how bad the Israeli economy is after three years of war and deep recession.

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This is not good news.