The Ministry of Finance has confirmed that the defense budget will be cut by NIS 4 billion in 2014. The defense budget has grown substantially in recent years, because of costly programs, such as the Sinai border fence and the deployment of the Iron Dome system.
The decision will not be implemented without Prime Minister Benjamin Netanyahu's approval.
In recent years, the IDF has been dealing with new threats which required special budgets. For example, last year, the Navy requested a supplement hundreds of millions of shekels to buy warships to protect Israel's gas production platforms in the Mediterranean.
The defense establishment says that the budget cut, if approved by the prime minister, will not affect this year's budget.
The Ministry of Finance has, for a long time, demanded a cut in defense spending, and that there is plenty of fat which could be removed for hefty savings. For example, the ministry cites the low retirement age for career officers and NCOs, redundant manpower in rear echelon bases, and the proposal to shorten military service. It has also called on the IDF to vacate bases located on expensive land, which can then be sold to real estate developers.
Published by Globes [online], Israel business news - www.globes-online.com - on May 7, 2013
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