Israel trims defence spending in austerity budget

Israel's cabinet was meeting late into the night on Monday to thrash out details of an unpopular austerity budget, after unanimously agreeing to impose spending cuts on a reluctant defence establishment.
At 3.0 billion shekels (USD 840.73 million, 648 million euros) the defence cuts were one billion shekels less than those sought by Finance Minister Yair Lapid, and a small part of what is still likely to be a military bill of about 56 billion shekels.
Defence chiefs had lobbied hard against the measures, warning politicians they would bear the responsibility if they undermined the ability of security-conscious Israel to defend itself.

Still to be decided by ministers on Monday were proposals to slash spending across the board, including on family allowances, a move which enraged parties representing ultra-Orthodox Jews, who traditionally have lower incomes and larger families.
"Perhaps the benefits are pocket money for many higher-income families and they do not even know how much they are getting, but for most Israelis, child support is part of their monthly income," Shas party leader Aryeh Deri told parliament according to news website Ynet.
He was speaking in support of one of five opposition no-confidence motions in the government's economic plans, all of which were easily defeated.

With public opposition mounting and the budget, even if approved by the cabinet as expected, still to win approval from parliament, the finance ministry was at pains to deny reports it planned to impose property tax on cemetery plots.

"There is no truth in reports that taxes will be required on graves," it said on Facebook.
Prime Minister Benjamin Netanyahu backed Lapid's drive to reduce a burgeoning budget deficit but said cuts to the military needed "balance".
"We need the IDF (Israel Defence Forces) to continue its process of streamlining, but we also need more Iron Domes," he told ministers, referring to the country's vaunted missile defence batteries.

"I believe the way I am proposing today provides the correct balance between security needs and the needs of the economy."
Netanyahu himself has been pilloried in the media over reports that despite the austerity campaign he ordered a double bed installed on his chartered plane for the five-hour flight to London last month to attend the funeral of former British premier Margaret Thatcher, at a cost of 127,000 dollars.