Yesterday, Finance Minister Silvan Shalom revealed his NIS 13 billion government emergency budget cut and tax reform initiative. The plan aims to free up money in order for Israel to pay the heavy costs incurred during the current war against PLO terrorism. Under the plan the Value Added Tax (VAT) on all products and services would be increased from 17% to 18%. The plan also calls for a steep jump in taxes on cigarettes and gas; cuts in social payments (child allowances, unemployment, and possibly even payments to the elderly); and an increase in health and national insurance payments for the high-income classes. Under the proposal there would also be a 5% cut in the wages of ministers, members of Knesset, and other elected officials. In addition, there would be a 4% cut across-the-board in the budgets of the various ministries.
Minister of Internal Security Uzi Landau stated yesterday that the proposed ministerial budget cuts would have a disastrous impact on the police force and could possibly place Israeli lives in danger. Landau explained that he has been calling for increased funding to hire an additional 10,000 police officers and an additional budgetary cut would make adding more officers impossible. Landau said that currently the force is stretched to maximum capacity because of the daily terrorist threat.
Minister of Internal Security Uzi Landau stated yesterday that the proposed ministerial budget cuts would have a disastrous impact on the police force and could possibly place Israeli lives in danger. Landau explained that he has been calling for increased funding to hire an additional 10,000 police officers and an additional budgetary cut would make adding more officers impossible. Landau said that currently the force is stretched to maximum capacity because of the daily terrorist threat.