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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.”
Continue reading ‘Israeli Expert: Defense budget demands could set back standard of living 20 years’
Tasting the impact of war for the first time.
Hizbullah rockets changed lifestyle of Israelis in northern region…
Rockets drive shoppers to Internet
Israel’s supermarket chains report a steep rise in use of their online services.
Michal Raz-Chaimovitz 24 Aug 06 11:28
Judging from sales on e-commerce sites, the recent war has caused changes in consumer habits, especially in purchases of food and basic products. The convenience of the sites, and the need to obtain supplies without leaving home led to an impressive rise in e-commerce purchases.
Super-Sol Ltd. (TASE:SAE; OTCBB:SSLTF) online retail site Net-Sal reported a 30% increase in sales during July-August, a period usually typified by moderate surfer traffic due to the summer break. The number of customers from Haifa and the northern region rose 250%, amounting to 30% of the total number of new customers. Delivery times were the same as usual, thanks to Super-Sol’s local outlets.
Continue reading ‘Rockets drive shoppers to Internet’
Time to get reimbursed for a proxy war?
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“Israeli economic sources in the US believe that the Bush administration will tend to be favorable to Israel exceeding the 1.7% threshold, if it’s for one-time expenses, such as rearming the IDF, payment of compensation to victims of the war, and so forth.”
Continue reading ‘Israel to get reimbursed by Uncle Sam’
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“According to real estate agents in the Galilee, even stiff cancelation fees, ranging from NIS 10,000 to NIS 200,000, depending on the stage in which the deal was killed, have not kept some potential buyers from deciding against a move to the North”
“One person in the industry charged that instead of working to encourage settlement in the Galilee, the government is working against that goal, citing the decision to suspend laying a rail line from Haifa to Carmiel: “Instead of helping these communities, the government is only hurting them. We believe in the Galilee but without state aid, people will leave,” he said.
Continue reading ‘Israel: Real Estate deals another casualty of war in the North’
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
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“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.”
Continue reading ‘Israel: Ministers’ war spending demands total NIS 20-25b’