A stronger shekel, rising fuel costs and drop in the value of the US dollar has forced the IDF to ask for an advance on next year's budget in order to be able to continue its own efforts to build up its strength and purchase munitions and other supplies, according to sources.
The 2008 budget was fixed at NIS 50.5 billion, but the shifting economy has meant that the army needs as infusion of cash.
"We need the advanced payments to deal with specific issues sooner than initially planned… This is key to improving the IDF's level of readiness," said an unnamed senior army official.
Over the next few months, the IDF Planning Directorate, led by Air Force Maj.-Gen. Amir Eshel will present the 2009 work plan to IDF Chief of Staff Lt.-Gen. Gabi Ashkenazi, which will include the proposed annual budget as well as procurement and operational plans for the year.
Multi-Year Budgets Presented Following the War
In the wake of the 2006 Second Lebanon War, the army began presenting multi-year budgets, with incremental yearly increases. The cash advance the IDF is requesting from the Finance Ministry is based on the proposed increase for 2009 detailed in the multi-year plan that was presented this past year.
The IDF is currently in the midst of a major cost-cutting and streamlining initiative: sources said the army has saved NIS 550 million in costs across the board throughout its various branches.
The IDF is also in the process of finalizing a multi-million dollar three-year deal with McKinsey & Co, an American business consulting firm, to create a ten-year plan to streamline the entire military establishment. The company reportedly built a similar plan for the UK military in the past.