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Israel Finance Ministry Cites Action on Checking Inflation

August 21, 1962
See Original Daily Bulletin From This Date

The Israel Finance Ministry today issued a report challenging some of the figures cited by David Horowitz, Governor of the Bank of Israel, in his criticism last week that the Treasury had failed to carry out necessary anti-inflationary measures following last February’s devaluation of the Israel pound.

Today’s statement by the Finance Ministry followed a hearing on the issue yesterday by the Cabinet which recommended that the dispute between the Treasury and Mr. Horwitz be considered closed.

In its report, the Finance Ministry said that the Government had this year absorbed 109,000,000 pounds ($36,333,000) in surplus spending power, rather than the 37,000,000 pounds ($12,333,000) stated in the Horowitz report, which, the Treasury statement declared, did not include the month of January when 45,000,000 pounds ($15,000,000) was absorbed.

The Treasury statement also said that Mr. Horowitz had ignored another 27,000,000 pounds ($9,000,000) which the Government gains through devaluation, as well as other steps taken by the Government to absorb purchasing power. The Government, according to the Treasury statement, has been implementing most of the other recommendations contained in the Horowitz report.

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