The Cabinet voted to cut the budget of the Defense Ministry by 2.7
billion shekel, or $700 million, over the next two years. The defense cut
was approved in a 20-5 vote as part of a two-year overall state budget that
would reach $70 billion in 2012, Middle East Newsline reported.
"Naturally, we can't meet every need, even though many are legitimate
and important, but a leader's job is to weigh priorities and make
decisions," Prime Minister Benjamin Netanyahu said on July 16.
Officials said the defense cut would affect military manpower and
benefits. They said Netanyahu agreed to reduce the proposed cut from the
initial $780 million, or three billion shekel.
Defense Minister Ehud Barak said he accepted the military budget cut.
Barak said such a move was required amid the strain of the global credit
decline. Over the last year, Israel has maintained a budget of about $10
billion.
On the eve of the cut, the military warned of the repercussions of a
budget reduction on staffing, particularly the retention of mid- and senior
officers. But officials said the cut would not threaten major weapons
programs amid preparations for conflict with Hamas, Hizbullah and Syria.