Israel Publishes Estimated Foreign Currency Budget for This Year

The Israel Government today published an estimated foreign currency budget for the current fiscal year amounting to some $346,000,000. The Cabinet approved the document late last night and it was sent to Parliament today.

Estimated income and its sources are: exports, $78,000,000; hidden exports, $11,000,000; from institutions such as the United Jewish Appeal and Hadassah, $65,500,000; bond sales, $32,000,000; American grants, $74,000,000; German reparations payments, $59,500,000; and from a variety of other sources including individual pensions from abroad and compensation payments from foreign countries, over $26,000,000.

Anticipated foreign currency expenditures are; food imports, $48,000,000; fuel, $36,000,000; raw materials for industry, $17,000,000; semi-manufactured products for re-export, $41,000,000; investments in agriculture, $44,000,000; investments in power production and industry, $27,000,000; investments in transport, $21,000,000; and reserve and debt repayment, $40,000,000. The expenditures for food imports decreased this year as local agriculture picked up more of the load. Fuel bills may be slightly lower, depending on final negotiations with the U.S. S. R. for oil purchases.

Commenting on the budget, Treasury director Pinchas Saphir said that Israel is making good progress toward economic independence and that the government was now in position to make considerable concessions to investors, both private and cooperative. He praised the UJA’s effort to raise a five-year loan in the United States to help Israel meet its short-term obligations, noting that this loan had saved Israel $7,000,000 in interest last year and had increased confidence in Israel’s currency both at home and in the world money markets.