Israeli Defense chiefs agree NIS 2.25b cut in 2003 budget

Globes ^ | 11 March 2003 | Zeev Klein and Zvi Lavi

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Defense chiefs agree NIS 2.25b cut in 2003 budget

The cut amounts to 40% of the amount originally planned. A top-level meeting will discuss the cut tomorrow.
Zeev Klein and Zvi Lavi 11 Mar 03 16:35

The Ministry of Defense has consented to a NIS 2.25 billion budget cut, 40% of the NIS 5.5 billion cut passed by the cabinet and the Knesset two months ago.

Following sharp disputes between the parties, Prime Minister Ariel Sharon summoned Minister of Finance Benjamin Netanyahu and Minister of Defense Shaul Mofaz to another discussion tomorrow in Sharon’s office. The Ministry of Finance is demanding a deep cut in the 2003 defense budget.

Netanyahu and Mofaz met today to discuss the budget cut for the second time in two days. Minister without portfolio Meir Sheetrit and IDF Chief of Staff Lt.-Gen. Moshe Yaalon also attended the meeting, at which no agreement was reached.

Sheetrit managed, however, to reduce the gap between the Ministries of Finance and Defense from NIS 5.5 billion to NIS 3.25 billion. The gap was reduced in a meeting yesterday attended by Sheetrit and Ministry of Defense director general Amos Yaron.

The Ministry of Defense is ignoring the cut approved two months ago by the government and the Knesset, and has already deviated from its first quarter budget by NIS 1.5 billion.

The Ministry of Finance is proposing a further NIS 1.5 billion defense budget cut, in addition to the cut already decided. The cut is part of the emergency economic plan to cut all ministries’ spending by NIS 10 billion.

The Ministry of Finance says that unless the defense budget is cut by the entire planned amount, the overall cut in the state budget will have to be increased, with the cut being shifted to civilian budget items.

The Knesset Foreign Affairs and Defense Committee will also discuss the dispute over the defense budget cut in the next few days, and will summon the Ministries of Finance and Defense directors general to its session.

MK Ephraim Sneh (Labor Party) said that if the confrontation between the two directors general takes place, he recommended “putting two ambulances on call.”

Published by Globes [online] - www.globes.co.il - on March 11, 2003

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It's pretty sad that Israel, in wartime, is so strapped for cash that they have to cut the defense budget.