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Israel Cabinet Decides to Raise Compulsory Loan of 15,000,000 Pounds

The Israel Cabinet, in a special session today, approved a compulsory loan for 15,000,000 pounds (about $8,000,000) which the treasury said it needed to cover expenditures in the current budget which will be higher than the Treasury originally estimated.

The loan will be part of a 115,000,000 pound (about $60,000,000) additional budget. The compulsory loan will be raised as advance payments on property taxes and on war damage insurance taxes.

The Cabinet decided to allow the Progressive Party, which strongly opposes the compulsory loan, to abstain from voting when the loan bill is submitted to the Knesset, Israel’s Parliament. The Progressive Party is a member of the Coalition and under a coalition agreement, all partners are obligated to vote in Knesset for any motion or bill approved by a Cabinet majority unless the Cabinet gives specific permission to abstain.