Prime Minister Ariel Sharon decided Tuesday to reduce the proposed defense budget cut by about NIS 850 million (approximately USD 190 million) as a result of the growing Iranian threat.
As a result, the defense budget would be cut by only NIS 650 million (approximately USD 155 million)
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"I want it clear that the question of the security of Israel and its citizens is the most important and we must not assume risks that cross the red line," he said at the opening of the cabinet meeting called to discuss the 2006 budget. "We must take into account dangerous developments in Iran and other places."
Sharon said the budget "must be approved by the end of the day", as the ministers met to discuss amendments he had made a day after outgoing Finance Minister Netanyahu quit the government in protest of the upcoming pullout from the Gaza Strip and the northern West Bank next week.
Netanyahu had proposed budget cuts of a total NIS 3.6 billion (approximately USD 800 million) in several ministries.
Earlier, Army Chief Lt.-General Dan Halutz said the cuts would allow security forces to survive by the end of 2005 only, adding that "we are planning wide-range organizational changes in the army, whose benefits we will not be able to witness within a month, but after a longer term."
Olmert approved for finance minister
On Tuesday, the cabinet also approved the appointment of Netanyahu's replacement, Vice Prime Minister Ehud Olmert.
“This may not be the budget I compiled, but it’s important to show stability and approve the framework of the budget that has existed until today.”
“The government’s stance, where the deficit goal stands at three percent and spending grows by only one percent, has been commended greatly and should continue in order to pass on a message of stability and continuity. If we don’t, we will cause irreversible damage,” he said.
Education Minister Limor Livnat and Health Minister Danny Naveh threatened to vote against the budget due to proposed cuts in her ministry’s budget.
Both joined Netanyahu and two other ministers in voting against the first stage of Israel’s evacuation of Gaza settlements on Sunday and have voiced opposition to the plan in the media.
- Shani Mizrahi and Ronen Bodoni contributed to this report
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