The defense budget hit a new record in 2012, adding 4.6 billion shekels ($1.27 billion) and amounting to NIS 66.4 billion ($18.38 billion) -- an 8.2 percent increase compared to the original budget appropriated to the defense establishment, the Finance Ministry revealed on Sunday. The data was released following harsh criticism leveled at the government by the defense establishment over its decision to cut NIS 3 billion ($817 million) in defense spending in 2013. Last week, Israel Defense Forces Chief of Staff Lt. Gen. Benny Gantz announced a series of cutbacks to military training and operational deployment meant to meet the new budget goals. The cuts prompted IDF officials to warn that major spending cuts could result in a debilitated army that may not be up to the security challenges Israel faces. According to the Finance Ministry's data, the 2012 defense budget was set at NIS 55.8 billion ($15.4 billion), but reached NIS 60.4 billion ($16.7 billion). The state budget has a built-in reserve of NIS 6 billion ($1.66 billion), meant to fund the intelligence services' needs, should they exceed their budgets. The additional defense spending was approved by the subcommittee on the defense budget, which operates by proxy of the Knesset's Foreign Affairs and Defense Committee and the Knesset's Finance Committee. The data further indicated that in 2012, the budget appropriated to the intelligence services, namely the Mossad and the Israel Security Agency (Shin Bet), amounted to NIS 5.91 billion ($1.64 billion), with a NIS 269 million ($74.5 million) contingency for conditional expenditures. In 2011, the intelligence services' budget came to NIS 5.86 billion ($1.62 billion) with a NIS 266 million ($73.65 million) contingency reserve. According to the Finance Ministry, the IDF spent some NIS 20.8 billion ($5.75 billion) on its career servicemen's salaries and pension plans, compared to NIS 19.41 billion ($5.37 billion) in 2011 -- a NIS 1.35 billion ($373 million) increase. Wages and pension plans make up 34.3% of the annual defense budget. The military's budget for the retirement benefits paid to IDF officers increased by 21.5%, or NIS 877 million ($242.7 million), in 2012; while the wages paid to civilians employed by the military amounted to NIS 2.3 billion ($636.5 million). The military's expenditures on reserve training came to NIS 1.5 billion ($415 million), while the wages paid to the employees in the Defense Ministry's various autonomous units came to NIS 1.3 billion ($359.7 million). The IDF Spokesperson's Unit released a statement saying, "We regret that we have to respond to this unilateral, biased presentation of unfounded data. The information released [by the Finance Ministry] fails to reflect the various streamlining processes conducted by the IDF regarding its budget and personnel in 2011 and 2012."
Finance Ministry: 2012 defense budget hit a new record
Newly released data says 2012 defense budget, which was set at NIS 55.8 billion, ballooned up to NIS 66.4 billion • Wages make up 34.3% of IDF's budget • Military says data unfounded, "ignores streamlining processes conducted in 2011 and 2012."
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