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Home Economy

Foreign, Finance ministries lock horns over extensive budget cuts

by  Shlomo Cesana and Zeev Klein
Published on  01-09-2018 00:00
Last modified: 11-25-2021 15:17
Foreign, Finance ministries lock horns over extensive budget cuts

The Israeli Foreign Ministry complex in Jerusalem

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The government is poised to vote Thursday on the 2018-2019 state budget, which is expected to amount to 1 trillion shekels ($290 billion), making it the largest biennial budget ever proposed.

The state budget for 2017-2018, approved in December 2016, amounted to NIS 907 billion ($263 billion).

The budget is expected to include cuts to the Foreign Ministry, Public Security Ministry and Religious Affairs Ministry, spelling stormy debates and a potentially narrow vote.

The Finance Ministry has proposed slashing NIS 216 million ($63 million) from the Foreign Ministry's 2019 budget, a move diplomats have already warned would compromise Israel's national security.

Under the plan, NIS 176 million ($51 million) would be cut from the Foreign Ministry's overseas operations' budget and NIS 40 million ($12 million) more from its domestic budget.

The Finance Ministry has proposed gradually closing 22 Israeli missions abroad and canceling 140 diplomatic and staff positions by 2022.

Prime Minister Benjamin Netanyahu, who holds the Foreign Affairs portfolio, said Monday the proposed cut to the Foreign Ministry's budget has yet to be finalized.

But Finance Ministry officials said the issue is "as good as settled," mostly because it shows other ministers that even an office headed by Netanyahu is not immune to extensive budget cuts.

Foreign Ministry officials harshly criticized the move. Deputy Foreign Minister Tzipi Hotovely accused the Finance Ministry of "sabotaging Israel's foreign relations."

"This is an outrageous proposal and we will not stand for it. The Finance Ministry has decided to carry out a targeted assassination of the Foreign Ministry, of all things, at a time when Israel is expanding its foreign relations and the ministry needs more money," she said.

Foreign Ministry spokesman Emmanuel Nahshon echoed the criticism, saying, "Israel's foreign relations are part of the country's national security and it is important that the Finance Ministry understand that."

Former Israeli Ambassador to the U.N. Ron Prosor, who heads the Abba Eban Chair of International Diplomacy at the Interdisciplinary Center Herzliya, warned the move would prove "grossly detrimental to Israel's foreign relations. Closing 22 Israeli missions overseas is like ordering the IDF to shutter 22 battalions."

Zionist Union MK Nachman Shai, who heads the Knesset Lobby for Strengthening Israel's Foreign Affairs System, said he plans to call an emergency session of the lobby next week to discuss "the Finance Ministry's lunatic plan."

The Finance Ministry also proposed cutting NIS 7 million ($2 million) from the Religious Affairs Ministry's budget and merging the various religious services' offices, which would save an additional NIS 4 million ($1 million) a year.

But the move, which also entails slashing the budgets for local religious councils, has ruffled the feathers of the ultra-Orthodox parties, especially Shas, whose MKs are expected to draw out the budget discussions until the  last moment, a source familiar with the budget bill said.

The Finance Ministry would also like to cut NIS 100 million ($29 million) from the 2019 budget allotted to the Ministry for the Development of the Negev and Galilee, headed by Shas leader Aryeh Deri.

The Finance Ministry has also proposed cutting the Israel Police's budget for the daily allowance given to police officers by NIS 50 million ($14.5 million), 27.5% of the NIS 183 million ($53 million) budget.

Public Security Minister Gilad Erdan reportedly opposes the move, which would essentially leave police officers with a daily allowance of less than NIS 20 ($6) each.

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