The Sinai campaign last year cost Israel 350, 000,000 pounds ($194, 000, 000) Finance Minister Levi Eshkol announced in Parliament tonight in an address accompanying his submission of a supplementary budget of 39, 000, 000 pounds for this year. This is the first official disclosure of the cost of the whirlwind week-long campaign to Israel.
The Sinai drive also cost Israel additional foreign currency expenditures of $60, 000,000. Some of the increased costs were covered by new taxation, postponement in the repayment of certain indebtedness and the floating of new bank loans. This contributed to the inflationary pressures on Israel’s economy, Mr. Eshkol said.
But despite these pressures, the Finance Minister predicted, 1957 will go down in history as a year of progress and prosperity for Israel. Exports were up 30 percent during the first ten months of the year, though a corresponding jump in imports prevented a decrease in the trade deficit.
Industrial production rose 12 percent, and agricultural production by 10 percent while building starts rose 25 percent over last year. The accretion of 76, 000 immigrants and a natural increase of 42, 000 births over deaths contributed to a 6. 5 percent boost in population, the Minister reported.
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