Israel: Ministers’ war spending demands total NIS 20-25b

Israel: Ministers’ war spending demands total NIS 20-25b

You may say that Uncle Sam will foot the bill…
Yet this reflects the size of damage inflicted by Hizbullah on Israel…
In Dollar terms NIS 20-25 billion = US $5.6 Billion – 5.73 Billion

~EXCERPTS~
“The additional demands for budgets to finance costs incurred by the Lebanon war total NIS 20-25 billion, 9% of the government budget and 4% of GDP.”

“The extra budget requirements of the defense establishment and IDF total NIS 8 billion, of which NIS 2.2 billion will be transferred after the Knesset Finance Committee approves a NIS 2 billion cut in the 2006 budget.”

“The Ministry of Finance estimates the available financing sources at only NIS 12.1 billion. These comprise NIS 6 billion in surplus revenue from taxation and privatization; NIS 3.3 billion from the property tax compensation fund, and a NIS 2.8 billion budget cut.”

“The estimates for the budgetary deficit in 2007 range from NIS 6-11 billion.”

Ministers’ war spending demands total NIS 20-25b
The Ministry Finance estimates financing sources at only NIS 12.1 billion.
Zeev Klein 22 Aug 06 14:18

Ministers have been drawing up their additional budgetary requirements ahead of tomorrow’s cabinet meeting on strengthening Haifa and the north, chaired by Prime Minister Ehud Olmert. The additional demands for budgets to finance costs incurred by the Lebanon war total NIS 20-25 billion, 9% of the government budget and 4% of GDP.

The extra budget requirements of the defense establishment and IDF total NIS 8 billion, of which NIS 2.25 billion will be transferred after the Knesset Finance Committee approves a NIS 2 billion cut in the 2006 budget.

The additional budget demands are as follows:

  • Costs of direct damage to property – NIS 1.75 billion
  • Salary reimbursements to businesses from July 15 – NIS 1.75 billion
  • Compensation to local authorities in the north – NIS 1.5 billion
  • Additional funding for hospitals in the north NIS 1 billion
  • National Insurance salary payments to soldiers on reserve duty – NIS 800 million
  • Six-month exemption from VAT for businesses in the north – NIS 330-450 million
  • Compensation to farmers in the north – NIS 400 million
  • Grants to reserve soldiers called up for duty in Lebanon – NIS 2-3 billion
  • Salary reimbursements to businesses through August 15 – NIS 1.75 billion
  • Cost to state budget of Office of Vice Premier’s plan for reconstruction of the north – NIS 3 billion

The Ministry of Finance estimates the available financing sources at only NIS 12.1 billion. These comprise NIS 6 billion in surplus revenue from taxation and privatization; NIS 3.3 billion from the property tax compensation fund, and a NIS 2.8 billion budget cut.

The estimates for the budgetary deficit in 2007 range from NIS 6-11 billion.

Published by Globes [online], Israel business news – www.globes.co.il – on August 22, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006

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