Minister of Finance Yair Lapid wants to delay two rail projects and three road projects as part of the budget cuts, but Minister of Transport Yisrael Katz objects.
At a press conference today, Katz said that budget cuts should not include investment in transportation infrastructures, as this would harm growth.
The Ministry of Finance says that there is no choice but to cut the transportation budget, in view of the large deficit. The ministry's cutbacks in transportation are minor, involving two years delay in construction of the Acre-Carmiel and Jezreel Valley railway lines. The cost of each line is NIS 4 billion, and they are scheduled for completion in 2016. Earthworks for both projects have already begun.
The Ministry of Finance also wants to delay work on Road 3 (Ashkelon-Latrun) and sections of two roads in Lower Galilee (Road 77 and Road 79), as part of the eastern arm of the Cross-Israel Highway project. The ministry said that projects involving road safety, and projects on which has begun would not be affected.
Published by Globes [online], Israel business news - www.globes-online.com - on April 10, 2013
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