The defense budget eroded by over NIS 5 billion through the end of 2010.
The IDF is worried about erosion of the defense budget caused by rising prices. Calculations by the IDF chief of staff budget advisor found that the budget value eroded by over NIS 5 billion, between 2008, when the multiyear plan began, and the end of 2010. The calculations indicate that the erosion will top NIS 9 billion by the time the plan ends in 2012.
"This erosion is a lethal blow to the structure set by David Brodet, who chaired the defense budget committee that established the multiyear budget. The committee explicitly said that, each year, in addition to the fixed budget, a supplementary budget would be provided that takes rising prices into account, because what was true at the end of 2007, is not necessarily true in 2011 or 2012. These supplements have not been transferred, and the budget is meanwhile eroding," an IDF source told "Globes".
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2011
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