The Ministry of Finance is about to submit a plan to cut the 2012 budget by a further NIS 300 million to finance the reform of the fire service, sources inform "Globes." The plan might be submitted to next Sunday's cabinet meeting.
A senior Ministry of Finance official told "Globes," "Without adaptations the reform won't be implemented." In Ministry of Finance language "adaptations" is a euphemism for cuts.
Prime Minister Benjamin Netanyahu, Finance Minister Yuval Steinitz and Minister of Internal Security Yitzhak Aharonovitch today presented the planned reform for the fire service, which involves setting up a national fire and rescue service to replace the current local authority based service.
An announcement from the Prime Minister's Office today said, "The fire service budget will be increased to NIS 1 billion. The budgetary outline for implementing the reform was formulated by Prime Minister's Office Director-General Harel Locker; the base for the fire service budget, which currently stands at NIS 700 million, will be increased by NIS 300 million over the next six years, NIS 100 million of which will be allocated in 2013."
In the wake of the new allocation planned today, which was not part of the original 2012 budget, the Ministry of Finance makes it clear that any significant new costs approved by the government, including food security costs of NIS 100 million, and NIS 300 million for prisons (only in 2012) must be offset against other budget items to finance the new projects.
In all the Ministry of Finance must find NIS 700 million to fund the fire service, prisons and food program by cutting elsewhere.
Published by Globes [online], Israel business news - www.globes-online.com - on July 16, 2012
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