A national budget, reportedly amounting to $2 billion for the next fiscal year, was adopted by the Cabinet yesterday and will be submitted to the Knesset (Parliament) later this month. The figure, which was reported by informed sources, is $350 million higher than the budget approved for the present year but represents cuts in spending for development projects such as public works and road building. It does not include security and defense expenditures. The 1969 fiscal year will begin on April 1.
Financial reporters commenting on the details of the budget saw a credit squeeze in the offing. They noted yesterday’s statement by a Government spokesman that no compulsory loan would be imposed on the population next year. However, Israeli banks will be asked to purchase Government bonds amounting to $58 million. Since they will have to make their purchases from funds set aside for customer loans, they will be less able to grant credit to the general public, the financial writers said.
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