JERUSALEM (Dec. 7)
Israel will start on a program of “economic retrenchment” which will involve restraint on expenditures at the public level, tightening of credit regulations, is creased tax collections, and a slow-down in the public construction of housing.
A decision to this effect was taken today by an economic committee composed of Cabinet members. The committee approved a program of economic retrenchment proposed by Pinhas Sapir, Minister of Finance, who stressed that he took into consideration an expected decline in revenue from foreign sources.
The Finance Minister reported that while this year’s regular budget includes 132,000,000 pounds ($44,000,000) from foreign sources normally reserved for development, next year’s process will be reversed, and ordinary revenue will have to be used to finance the development budget.