Israel's military wins budget increase due to mini-war

TEL AVIV — During peacetime, Israel's military was bracing for budget cuts that it warned would damage the nation's security.

But Israel's current mini-war with the Palestinians has broken the government's resistance and the military is expected to be given a significant increase in funding.

On Wednesday, Finance Minister Avraham Shohat met Chief of Staff Lt. Gen. Shaul Mofaz. Military sources said Shohat did not oppose Mofaz's request for a budget increase of up to 800 million shekels [$195 million].

The government alloted 36.4 billion shekels [$9 billion] for defense in 2000. Shohat has slashed the military's call for a 1.5 billion shekel increase and limited this to 750 million shekels for fiscal 2001.

Military sources said the increase in the cost of the current deployment in the West Bank and Gaza Strip amounts to at least $500,000 a day. The sources said the cost will run higher as the conflict continues and will include funding for supplies and weapons.

Barak is said to support an increase in the defense budget based on a government assessment that the conflict with the Palestinians will continue for several months. At the same time, officials are trying to play down the prospect that the current mini-war will damage Israel's economy.