The Cabinet agreed to devote a full session to the country’s troubled economy after an angry exchange on the subject today between Finance Minister Yoram Aridor and Energy Minister Yitzhak Modai. Premier Menachem Begin intervened several times when the two ministers traded insults.
The matter was raised at today’s Cabinet meeting by Interior Minister Yosef Burg who noted that adverse reports on Israel’s economic condition have appeared in the media abroad in recent weeks. Burg was also concerned by a remark over the weekend by the Deputy Governor of the Bank of Israel, Yakir Plessner that large budget cuts were needed even though they would reduce living standards and possibly lead to unemployment.
Burg asked Aridor when the Cabinet could expect a full-scale discussion of the economy. The Finance Minister replied that he would agree to discuss one issue, a substantial reduction of government expenditures. Modai interrupted at that point to say that the overriding issue is how to rehabilitate the entire economy. The Energy Minister has been critical of Aridor’s policies in recent newspaper interviews.
The Finance Minister replied angrily, “I am not ready to discuss this with you since you already expressed your opinion in the media.” Modai insisted that budget cuts were only one of many measures needed to overhaul the economy. He accused Aridor of failing to consult with his Cabinet colleagues while claiming that his policies had the Cabinet’s approval. Aridor retorted angrily that Modai was telling “lies” about the economy. Begin ordered the word “lies” stricken from the record.
IMPACT OF SALARY HIKES FOR DOCTORS
Aridor is urgently seeking budget cuts to enable the Treasury to pay for large salary increases for government-employed doctors. The increases are expected to be recommended by the arbitrator appointed today to adjudicate the issues in the four month long doctors’ strike which ended a little more than two weeks ago with an agreement to submit to binding arbitration. (See separate story).
Aridor had warned all along that whatever increases the doctors received would be demanded by public employes in other sectors. He pressed that point on Begin during a meeting over the weekend. According to the Finance Minister, only a general budget cut would make the extra funds available. Finance Ministry aides said Begin supported the demand for across-the-board cuts but the Prime Minister’s Office declined to confirm this and Begin seemed neutral on the subject at today’s Cabinet session.
Most other ministers have expressed concern that their budgets might be reduced. Defense Minister Moshe Arens is on record in favor of slashing the expenditures of the “civilian ministries” but insists that his own defense and military budgets remain intact.
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