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Kadima Calls Budget Cuts “Political Cowardice”

Prime Minister Benjamin Netanyahu is introducing across-the-board budget cuts. This includes the reduction of water costs, the reduction of public transportation prices and the cancellation of the latest tax hike on gasoline. Furthermore, the minimum monthly wages will be raised by NIS 450 ($122).

As for the gas price in Israel, it will be slashed 23 Agurot per liter setting the price at 7.02 NIS per liter. The reason why the increase on January, 1st, was a good idea was that it made room in the economy for the electric car industry, which will see Israeli ingenuity celebrated worldwide in the coming months. However, Netanyahu and Finance Minister, Yuval Steinitz, folded under public criticism.

Meanwhile, opposition leader Tzipi Livni of Kadima said:

“The budget cut is political cowardice and represents a lack of priorities.”

Adding that the lower classes are the ones who will be hurt by the move.

Knesset Member, Shlomo Molla, of Kadima said the Prime Minister

“has once again been exposed as a spineless man and a tireless zigzagger. There is no trust in this plundering government…Today they are lowering (taxes); tomorrow they’ll raise them. Netanyahu is entirely immersed in his political survival. This is why he must resign immediately…”

The Indian Giver

The United States of America has officially decided on cutting funding for Israel’s defense system.
 
The budget signed off by Congress for the Arrow 3 program totaled $108.8 million in 2011.
 
Well, this included a White House request for $50.8 million, combined with another $58 million added by the House Appropriations Subcommittee on Defense.
 
Now, the allotment from the White House for the project in 2010 was substantially higher, see? The White House had initially budgeted $60 million, and Congress had added another $97.4 million, bringing the total American donation to the program $157.4 million.
 
American Lieutenant General Patrick J. O’Reilly, Director of the Missile Defense Agency, once said:
 

“The design of Arrow 3 promises to be an extremely capable system, more advanced than what we have ever attempted in the U.S. with our programs…This has to do with the seekers that have greater flexibility and other aspects, such as propulsion systems – it will be an extremely capable system.”

 

Is he an Indian giver?

In May the White House announced a $205 million grant supposed to fund a 10-unit battery of the Iron Dome system. The Iron Dome is something of a fence which will surround the country and protect its southern flank against short-range Kassam rockets fired by disgruntled Islamists.
 
The munificent aid package will probably be a one-time grant, while the Arrow 3 funding cuts are permanent.
 
Besides for this, more cuts could be on the way. For instance, the Magic Wand system (known as “David’s Sling”), used to defend Israel against medium-range missile attacks was $84.7 million, while last year’s budget was $134.7.

The Arrow 3 anti-missile system, with a kill ratio of 99% is intended to intercept and destroy long-range ballistic missiles, such as the ones that could possibly be fired at Israel by the Iranian regime in Persia.

The system which is one of the most advanced defense systems in existence is being jointly funded and produced by the Israel Aerospace Industries and the U.S.- based billionaire Boeing aerospace and defense contractor.

Also known as Hetz, the Arrow 3 is a family of anti-ballistic missiles designed to fulfill a theater missile defense system which would be even more efficient than the MIM-104 Patriot surface-to-air missile.

Jointly funded – jointly produced by both the Jewish Country and the former British colonies of the New World – the corporate sector that is, development of the system began in 1986. Israel Aerospace Industries and Boeing are responsible for the fiscal infrastructure.

Saving For a Rainy Day: Bibi’s Big Budget Blunder

“In the last decade, the Israeli economy was faced with two crises: a local one and an international one.”


Began Bibi,

“We came out of both because we had an economic policy with vision. The budget we compiled today is a responsible and balanced budget that grants stability to the Israeli economy for the next two years.”

This is how the Prime Minister opened the cabinet meeting:

“The public in every country pays for going over the budget and unchecked spending…It may not be clear when a government goes over the budget, but we see what happened in some European countries. We can’t let such irresponsibility happen in Israel.”

He added,

“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.”

And with that the cabinet unanimously approved the new budget. The result of which is a decrease of NIS 2.7 billion – that’s 700 million US dollars, from the Defense Ministry’s budget over the two coming years.

In 2011-12 the systematic refill will happen in increments of 2.7% per year, standing the budget at NIS 271 billion, come the second year.
Well, Ehud Barak said the decision to cut his office’s budget was indeed necessary “given the economic and social reality.”

Though, a Kadima representative said that the new budget is:

“A complete public deceit. The most overblown and wasteful government in the history of the State has produced a budget that lacks policy and vision.”

According to Ehud Olmert’s party, the Labor ministers, “have no shame, and securing their seats is more important to them than the promises they made to their voters.”

Avigdor Lieberman’s Israel Beiteinu is not happy with the Prime Minister’s decision, per usual. Public Security Minister, Yitzhak Aharonovitch, said after the cabinet meeting:

“Israel Beiteinu is the senior partner [in the coalition]…but we’re treated otherwise. I say to the government and to the prime minister: We’ll meet in the Knesset…We’re voting against the budget – it will not pass!”

Aharonovitch says that the budget will skim from the Public Security Ministry NIS 700 million!

Also of Israel Beiteinu, Sofa Landver, Immigrant Absorption Minister railed on the cuts to her ministry:

“This is the first time since the establishment of the State of Israel that aliya is not on the government’s agenda,” she said. “The proposed budget is directly harming the absorption and encouragement of aliya. I call upon Prime Minister Binyamin Netanyahu to get involved, because he said that the absorption of olim is a priority for our government.”

She refers to a diaspora, arguably feeling further isolated from the Jewish Country due to a new orthodox conversion law (currently opposed by the Prime Minister, currently…temporarily?).

Stay tuned to see what happens next!

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