Declaring that Israel’s economic situation has become worse during the last eight months, Finance Minister Eliezer Kaplan told the Parliament today that foreign aid will help to overcome the difficulties, but the country also needs a balanced budget.
The Government, he reported, has already decided not to issue any additional banknotes. “Our first aim is that taxes should not only cover the ordinary budget, but also part of the development budget, ” he added. He disclosed that the 38,000, 000 pounds allotted for security in the general budget submitted by the government to the Parliament cover the biggest part of the entire security budget.
Mr. Kaplan announced that the government plans a new internal loan at three-and-a-half percent interest, exempt from income tax. He also revealed that the government is preparing three different rates for foreign currency. He concluded by outlining the major allocations of the American $65, 000, 000 grant-in-aid and emphasized that these allocations have been worked out in consultation with American authorities.
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