Israel Will Slow Government Spending to Forestall Possibility of Inflation
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Israel Will Slow Government Spending to Forestall Possibility of Inflation

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Israel will put a brake on Government spending in order to forestall inflation. A ministerial committee on economic affairs has decided to freeze or slow down a variety of development projects because of manpower shortages and the fear that Government spending might lead to an increase in the prices of goods and services.

Most development projects, except those considered vital, will be postponed until the end of the current fiscal year next March. Payments for work already contracted will be made in promissory notes instead of cash so far as is feasible. The move was expected to save at least $35 million in the current fiscal year.

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