The Israel Treasury reported today a budgetary deficit for the first half of the current fiscal year of 62,000,000 pounds, of which 52,000,000 pounds was laid to a deficit in the Israel development budget. This in turn, the Treasury said, occurred because of smaller receipts from American aid, food surpluses and the French loan.
Reporting that only 38 percent of estimated budget development revenue had actually been received, the Treasury explained that the Export-Import Bank Loan and the French Loan were received as expected but that equipment for which orders have already been placed will not arrive until later. This means that anticipated income from the use of such equipment will go to the Development Budget only as of the period of next year, the Treasury stressed.
Treasury officials said that while this lag delays receipt of income, the Government had to proceed with projects to absorb immigrants and also with its redemption of Israel Independence and Development Bonds despite the deficit.
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