The Israel Cabinet approved today a development budget of between 195, 000, 000 pounds and 200,000, 000 pounds, Pinchas Saphir, director general of the Treasury announced. He told newsmen that the total of the regular and development budgets will not exceed the 571,000,000 pound ceiling set by Parliament several months ago.
In an attempt to cover the development budget completely, Mr. Saphir added, the government has decided to reduce by half the subsidy for bread and to eliminate completely subsidies for sugar and tea. In addition, it has decided to initiate a compulsory “loan” which it estimates will bring in 12, 000,000 pounds. The loan would be repaid in 15 years.
The development budget will be devoted to projects in the field of agriculture, irrigation, industry, communications, transport, and building projects to provide 11,000 housing units. The development budget is also expected to provide work for the unemployed on the basis of a minimum of 12 days of work a month.
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