Finance, Defense Ministers agree defense budget

Moshe Kahlon
Moshe Kahlon

The two ministries have agreed on transparency between them, but not for the public.

Minister of Finance Moshe Kahlon and Minister of Defense Moshe Ya'alon today signed a memorandum of understanding on the defense budget for 2015-2020.

The memorandum declares the beginning of a new era in relations between the Ministries of Finance and Defense, and promises that joint work by the two ministries will be done "with full transparency between the ministries." The document contains nothing new concerning transparency to the public, however, and includes only the headings of the agreement.

Under the memorandum, the defense establishment will be guaranteed a multi-year budget that will provide "budget certainty for the system" and "implementation of the IDF multi-year plan for 2016-2020."

In return, the defense establishment consented to a series of structural reforms aimed at "diverting budget resources in the defense budget in the short and long term," including a change in the permanent army model that will "significantly reduce the retirement quotas, spending on wages, and retirement payments, while establishing a control mechanism for these expenses."

The document also "reveals" that jobs that are "not part of the IDF's core business" will become civilian, the recommendations of the Goren Committee on the rehabilitation budget will be implemented, compulsory IDF service will be shortened from 36 to 30 months, living allowances for soldiers doing compulsory service will be increased, and the R&D budget will be increased and determined.

Kahlon said today, "In recent years, as a civilian, an MK, and a minister, I have found the mutual recriminations between the Ministry of Finance and the Ministry of Defense very disturbing. This is improper. Since I took up my position, I have met the Minister of Defense, and told him, 'What has been going on here is a war, not a dispute.'

"The agreement signed with the Ministry of Defense does well for those who serve us, fight for us, and put their lives on the line for the sake of our security. I'm completely unwilling to accept the violent criticism in recent years against those serving in the permanent army. It's shortsighted to hug them only during wars; they have to be hugged all the time. I'm willing to admit it - I love IDF soldiers, and we'll do everything to empower them. My moral duty as Israel's Minister of Finance is to take care of them above all else."

Published by Globes [online], Israel business news - www.globes-online.com - on November 18, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Moshe Kahlon
Moshe Kahlon
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018