Sources familiar with the IDF's new five-year work plan – "Oz" – said that it factors in a potential recession as well the global economic slowdown already evident in the eurozone.
Still, the plan's premise is that the military will not be able to introduce any significant downsizing, as it must meet the challenged posed by the Arab Spring and other regional changes, as well as the Iranian threat.
The plan names the IDF's missile defense acquisitions' plans the military's top priority, as more Iron Dome and Magic Wand batteries are expected to become operational.
The Air Force is slated to receive several Hetz 3 ballistic missile defense systems, which will join the existing Hetz 2 systems.
The IDF's investments in cyber-warfare and intelligence are also expected to continue as planned; as are the planned investments in upgrading border protection systems and new Air Force command and control systems.
The majority of the cuts, it seems, will affect the Navy and Ground Forces.
The General Staff is expected to convene in early August to discuss the impending cut and the military's budgetary priorities.
Still, military sources said that unless the government orders an additional cut, the IDF will be able to maintain the forces' emergency readiness and training adequately.