24
Friday, January 25, 1985
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Modai's Draft Budget
Under Fire of Colleagues
West Bloomfield
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Jerusalem (JTA) — Finance
Minister Yitzhak Modai pre-
sented his Cabinet colleagues
with a draft budget for the 1985
fiscal year Sunday and ran into a
barrage of criticism for not cut-
ting enough.
The proposed budget mounts to
$22.9 billion, about $59 million
below the budget for fiscal 1984.
Minister of Science and Develop-
ment Gideon Patt called it "an
exact copy" of the 1984 budget at a
time when severe slashes in gov-
ernment expenditures are
needed. Modai insisted his budget
represented a substantial cut in-
asmuch as the government overs-
pent last year's budget by about
$1.8 billion.
Israel's request for major in-
creases in U.S. economic aid has
been put on "hold" by the Reagan
Administration pending evidence
that Israel has a detailed eco-
nomic program of retrenchment.
Secretary of State George
Shultz made clear to Premier
Shimon Peres in a letter last
month that the Administration
would not consider Israel's re-
quest for an additional $800 mil-
lion in economic aid until the Is-
raelis instituted large budget
cuts.
Modai's draft budget does call
for steep cuts in government price
subsidies for basic goods, smaller
public expenditures and the
elimination of about 4,000 jobs in
the public sector. It also forecast
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continued government deficits
and reduced living standards.
But none of the ministers had a
good word to say for Modai's ef-
forts. Defense Minister Yitzhak
Rabin, who has conceded that cuts
in the defense budget are needed,
was furious that cuts were made
in the draft budget without prior
coordination with his ministry.
He called that "irresponsible."
Patt asserted that Modai's
budget showed a lack of economic
policy.
He said the proposal covered
almost 95 percent of Israel's gross
national product (GNP). Accord-
ing to Patt, the government will
be spending practically every-
thing that is manufactured,
bought and sold in the Israeli
economy.
IDF Uncovers
Rocket Remains
Tel Aviv (JTA) — A Katyusha
rocket was fired from Jordanian
territory into the Jordan Valley
last week but caused neither
casualties nor damage.
It was the sixth time in recent
months that rockets had been
fired from Jordanian territory
into Israel. Members of an Israel
Defense Force patrol found the
remains of a Katyusha missile in
an open field. It was the type of
rocket used by the PLO.
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