Aridor Hails Budget Cuts Approval

Finance Minister Yoram Aridor hailed the unanimous decision of the Ministerial Economic Committee for its “courage” to adopt the Treasury’s recommendation for cuts in the budgets of various ministries, which requires final approval by the Cabinet. Aridor had recommended a cut of 55 billion Shekels in the total national budget, including a 20 billion Shekel slice out of the Defense Ministry’s budget.

Aridor, who was addressing the 500 Israel Bond leaders from around the world who are holding a nine-day conference here, said, first in Hebrew for the benefit of the Israeli press, and then in English for the benefit of the Israel Bond leaders, that “We have no more measures planned. Now it is the government’s turn to trim the budget and take the necessary complementary steps. The only two questions remaining are the reductions that must be made in the defense and education budgets.”

The Ministerial Economic Committee approved a package of cuts in communications, transport, tourism aid and housing. Still in dispute are the amount to be cut in the areas of defense, education, health and welfare. (Separate story P. 4.)

Aridor noted that “two difficulties led to Israel’s economic hardships: the Western world’s recession and the toll which the Lebanon war took on the country.” Nevertheless, he noted, Israel “survives and manages without high unemployment, without trouble paying the foreign tax or paying back debts. To stay in this position, we must cut our budget.”

“We must stay strong, but we can’t be strong militarily if we are not strong economically,” Aridor declared. He not only appealed to the Israel Bond leaders for more help but also appealed for economic support from the United States. But he noted that although the economic aid the U.S. provides “is vital and we certainly appreciate it … the U.S. government is a friend, not a relative. I would rather be helped by Brother Moshe than by Uncle Sam.”