The decision about the Locker report recommendations will be made by Prime Minister Benjamin Netanyahu. Netanyahu is expected to summon to his office Minister of Defense Moshe Ya'alon, Minister of Finance Moshe Kahlon, and professionals involved in the issue for a discussion by the opposed parties. While Ya'alon made it clear yesterday that he believed that the plan was destructive for the army, "superficial, and completely divorced from the reality surrounding and inside Israel, leading officials in the Ministry of Finance showed a different attitude today in a discussion today, saying that the report was very important and should be implemented in full. Netanyahu is not expected to make a decision on the issue today, but political sources believe that he is inclined to side with the Ministry of Finance and insist that most of the recommendations be implemented. Netanyahu received the Locker committee recommendations two weeks ago, and the recommendations were given to the ministries for comment and evaluations by the parties.
Sources informed about the budget discussions said that Netanyahu is expected to hear Kahlon today, and decide on the size of the defense budget. Netanyahu's decision will take into account that the budget must both provide a solution to the threats against Israel and facilitate cost cutting in the military, and also allow investments in the social budgets, particularly health, education, and welfare. According to the sources, Netanyahu seeks to strike a balance between Israel's defense and social needs, and will seek a consensus on the budget framework for this purpose. For example, the Locker committee recommends instituting a five-year budget, a proposal also supported by the IDF, and it is therefore likely to be adopted, in contrast to other items, which may be dropped.
The ball now moves to the prime minister's court, as has always been the case with budget events. This time, however, when Netanyahu heads a government with a 61-59 Knesset majority, the problem of bridging the positions of the parties before the state budget is approved is particularly acute. Netanyahu will have to find a compromise between the parties when the cabinet holds it discussion on the state budget, scheduled for next Thursday.
The Minister of Finance does not want to aggravate the tension with the Ministry of Defense when he needs Ya'alon's vote in favor of approval of the budget, and he will therefore avoid a confrontational attitude in this case. At the same time, the Ministry of Finance intends to make approval of the Locker report as written a condition for allowing an increase in the defense budget to NIS 59 billion, as proposed by the report. Among other things, the Locker report recommends that the defense budget for the next five years be NIS 59 billion a year, with a change in it allowed only in case of war or a recession.
Published by Globes [online], Israel business news - www.globes-online.com - on July 23, 2015
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