The Finance Ministry drew the ire of defense officials this week as it responded to nationwide calls for economic reform with a call to trim the defense budget. The Defense Ministry, the Finance Ministry demanded, must downsize its staff by 2 percent each year and to cut 10% from wages. During Sunday's weekly cabinet meeting, Prime Minister Benjamin Netanyahu said he had asked the Trajtenberg Committee, formed by Netanyahu 10 days ago to mediate with leaders of Israel's new social justice movement, to formulate concrete solutions during the month of September. He said the Israeli economy was in good shape, and it was possible to satisfy the protesters' demands for economic reform without breaking the current budget. Defense Minister Ehud Barak, who has disagreed with both Netanyahu and the finance ministry over the sources of funding for social reforms, said that the country's deficit could be stretched for the sake of social and economic stability - and that the government could afford to spend more. He also added he did not rule out cuts to the defense budget in the framework of general cuts to all ministries across the board. The Finance Ministry is convinced that the defense establishment can be more frugal. The Defense Ministry's spending had already been scrutinized under former Prime Minister Ehud Olmert's government. In 2007, the Brodet Commission published a report regarding the IDF's spending policies. The commission found that the IDF's budgetary considerations were deficient; Large scale projects such as the West Bank security fence, the (Gaza settlement) disengagement, and service wide pensions were not even taken into account as part of budget costs. The report demanded that the military become a more efficient body with a budget closer to NIS 30 billion ($8.5 billion). In 2010 the defense budget stood at NIS 53.2 billion ($15.1 billion), larger than any budget before it. It constituted 6.3% of the expected GDP and 15.1% of the entire national budget. Recommended steps include reducing the number of career soldiers and civilian IDF employees by 1.5% to 2% every year over the next decade; raising the retirement age to 57, to be applicable to currently serving personnel - effective immediately, inclusion of all pension costs in the military's budget to ensure the military sees these as part of its budget costs and so, has the incentive to manage this huge sum. "The finance clerks' actions in the past few weeks have proven that they don't understand economics, society or security," a defense official said in response. "Career soldiers don't get bonuses for staying on call and spending nights on bases," he added. Netanyahu's associates tried to ease the tension between the ministries. "The Trajtenberg Committee has yet to decide on the necessary changes and it's too early to fight on these issues," an official from the Prime Minister's Office said. Despite the Knesset's summer recess, which is scheduled to continue through late October, the Knesset Finance Committee will hold a special meeting to discuss socioeconomic issues. The prime minister is set to participate in the talks.
In light of the dispute between the two ministries, Defense Ministry Director-General Maj. Gen. Udi Shani announced on Wednesday morning that the Defense Ministry is willing to sell off three military bases to be converted for public housing.
Defense Ministry, Treasury clash over security budget
Treasury convinced the defense establishment can be more frugal, demands staff and wage reductions • Barak does not rule out Defense Ministry budget slashes as long as all ministries undergo cuts.
Load more...