Finance Minister Abraham Hirchson
צילום: דורון גולן
War's cost: NIS 7 billion
Treasury to transfer NIS 2 billion to Defense Ministry next week to finance war in Lebanon
The cost of the war in Lebanon so far, according to defense establishment estimates and not including the salary costs of reserve troops, is NIS 7 billion (roughly USD 1.5 billion,) Finance Minister Abraham Hirchson said Wednesday.
"We must remember that the war forced on us has an economic price," he said. "This price must not come at the expense of economic stability…it's important to remember that at wartime of all times the Israeli economy is required to display its strength, and we must not undermine it."
However, the minister made it clear that the Treasury intends to fully support the army's efforts in the North.
"The Finance Ministry under my leadership won't constitute an obstacle to the military's activity," Hirchson said. "Next week already, about NIS 2 billion (roughly USD 450 million) will be transferred to the Defense Ministry. In addition, an ongoing response to various needs will be provided to a significant extent of about a billion shekels."
The finance minister announced that a total of NIS 1.8 billion will be cut from the budgets of all government ministries, with NIS 600 million to be kept in reserve. However, Hirschson stressed that the diversion of funds will not include the health, welfare, and local authority budgets.
"Circumstances led the State of Israel's budget to reflect a new agenda," he said. "There's a change in priorities and this requires undertaking changes in the state budget for 2006. I presented the changes to the prime minister yesterday and he approved them."
Moran Zelikovich contributed to the report
