Daily Israel Report

Government Approves 4% Cut

Cabinet votes to approve 4% budget cut. Lapid: This is necessary to avoid bankruptcy.
By Maayana Miskin
First Publish: 7/21/2013, 4:04 PM

Cabinet meeting
Cabinet meeting
Flash 90

The government voted Sunday to approve a proposal from Prime Minister Binyamin Netanyahu and Finance Minister Yair Lapid to cut the purchasing budget for most government ministries by 4 percent.

The Defense Ministry, Education Ministry, and Welfare Ministry will be exempt from the cut. The Transportation Ministry’s development budget will be exempt as well.

Sources in the Finance Ministry explained that the budget was altered following agreements regarding the removal from the annual budget of a requirement for stay-at-home wives to make payments to the National Insurance Institute (Bituach Leumi).

“Reducing expenses expresses a change in priorities on the part of the government, with the intent of remaining within the limit set for the deficit… This decision will help to continue implementing an economic policy that supports growth,” Ministry spokespeople said.

Finance Minister Yair Lapid added, “This process is vital to bring us back to a responsible policy and avoid bankruptcy.”