The Cabinet decided Sunday to cut $34 million from the national budget for the current fiscal year and is studying how to trim the Defense Ministry’s budget by some $33,6 million. Due to the Cabinet’s decision, $26,4 million will be eliminated from development expenditures, mainly transportation and postal services, and $6 million will be cut across the board from all ministries in proportion to their approved expenditures. Reductions in the Defense Ministry budget for fiscal 1972 will be dealt with by a special ministerial committee appointed last week and headed by Premier Golda Meir. The new fiscal year begins April 1.
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