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“If the Defense Ministry demand for an additional NIS 30 billion in 2007 to 2010 is accepted, Israel will return to the ‘Lost Decade,” – 1974-85 after the Yom Kippur War, when defense budgets dwarfed civil budgets and hyperinflation ran in triple digits, the official said yesterday.
“The government economist claims the demands are extravagant and would push Israel 20 to 30 years back economically, including a sharp drop in the standard of living.”
“The economist believes it is time for a civilian review of the tremendous defense spending in recent years, calling it inconceivable that with such large budgets, soldiers and reservists serving in Lebanon faced shortages of equipment, supplies, food and beverages.”
Expert: Defense budget demands could set back standard of living 20 years
27.8.06 | 08:32 By Moti BassokPrime Minister Ehud Olmert, Defense Minister Amir Peretz and Finance Minister Abraham irchson are to meet this morning to discuss defense establishment budgetary demands through 2010.
Defense officials are seeking NIS 30 billion, mostly in fiscal 2007 and 2008, for resupplying, reacquiring weapons systems damaged during the war and preparing for the next war based on the lessons of recent hostilities, including developing new arms. The defense establishment is working under the assumption the Israel Defense Forces needs to be prepared quickly.
Continue reading ‘Israeli Expert: Defense budget demands could set back standard of living 20 years’

