Assurances that the Israel budget would be balanced were given to Parliament today by Finance Minister Levi Eshkol in his concluding statement in the general debate on the 571,000,000 pound 1954-55 budget. He was preceded by Deputy Minister for Industry Zalman Suzayeff, a General Zionist, who gave qualified approval to the government budget, which had come under attack by members of his and other coalition parties.
The Finance Minister indicated that further reductions in administrative costs might bring the budget down by some 10,000,000 pounds. However, he challenged critics of the budget to specify where they wanted services cut. This procedure, he assured the deputies, would soon make it obvious to all that farless could be trimmed from the budget than economy-minded deputies recommended in general terms.
Replying to criticism that private capital was not getting equal treatment from the government in relation to government and cooperative investment funds, Mr. Eshkol said that the government was attempting to encourage private capital to invest more in the country’s economy. But, he insisted, the government could not freeze one type of investment into inactivity while another form of capital catches up.
Mr. Eshkol promised that the development budget would be presented to the Knesset within two weeks. He said that while he agreed with Mr. Suzayeff that it would be preferable to restrict the development budget to short-term projects, it was unavoidable that some long-term investments must be undertaken.
AMNESTY FOR TAX EVADERS URGED TO RELIEVE CURRENCY SHORTAGE
Mr. Suzayeff, who as General Zionist leader had voiced the demand for “equality” of treatment among government, private and cooperative investment capital, said that such an “equilibrium” was needed to quiet the fears of private investors and bring more of them to participate in the economy than had been attracted thus far. Despite the participation of hit parts the government, Mr. Suzayeff said, less private capital had been forthcoming expected.
Mr. Suzayeff, who approved the anti-inflationary subsidy payments provided for in the budget, suggested that one means of relieving the currency shortage would be found in announcing an amnesty for tax evaders who would thus return to the banks currency which they have kept hidden. He approved of provisions for full tax collection, but insisted that tax rates must be established on a more “realistic” basis.
The debate on the budget as a whole was immediately followed with a debate on various departmental budgets–for the Premier’s Office, the President’s Office, the Knesset and the Foreign Office, and others. Although Premier Moshe Sharett was present, he did not, as is usual, lead off the discussion of his departmental request.
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