Proposals to raise funds for Israel’s extraordinary security needs were considered at a meeting of the Cabinet today.
Finance Minister Levi Eshkol presented a general outline of plans for mobilizing payments for emergency defense acquisitions which he had discussed previously at a meeting with Prime Minister David Ben-Gurion. He also reported on his recent talks in the United States with U.S. Secretary of the Treasury C. Douglas Dillon and West German Economic Minister Ludwig Erhardt.
The Finance Minister indicated after the Cabinet session that Israel would try to meet the special security needs without imposing new taxes this year. He emphasized, however, that demands for government services were exceeding anticipations and that the need for an increase in the budget would also, hinges on the immigration rate in the coming months.
Current plans appeared to include an effort to meet the known extra needs by cuts in other budget items, continued voluntary mobilization of funds and decreasing an existing surplus in the approved 1962-63 budget. The entire issue is scheduled to be placed before the Cabinet soon for a detailed discussion.
Meanwhile, figures on weapons production in Israel indicated today that such production increased 25 percent over that of the previous year. While precise information en overseas sales of such arms was not given, it was indicated that about 45 percent of the weapons were exported. The rise in production was due mainly to overseas orders.
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