• Short Summary

    The full financial cost to Israel of the October War became clear in the Israeli Parliament, The Knesset on Monday (January 28) when Finance Minister Pinnas Sapir presented a supplementary budget which raises defence spending to 50 per cent of the national budget for the financial year ending in April 1974.

  • Description

    The full financial cost to Israel of the October War became clear in the Israeli Parliament, The Knesset on Monday (January 28) when Finance Minister Pinnas Sapir presented a supplementary budget which raises defence spending to 50 per cent of the national budget for the financial year ending in April 1974. Before the war defence accounted for 30 per cent of budgetary apending.

    Mr. Sapir tabled the 1,200 million sterling supplementary budget and explained that 90 percent of the additional funds were needed for defence purposes.

    The GBP 1,200 million represents an increase of 60 per cent on the original GBP 2,000 million budget.

    The effect on the Israeli public was immediate. For on Tuesday evening the Government announced it was cutting by half the subsidies on basic food commodities. Food such as eggs, rice, bread, butter, margarine, sugar, milk and cheese are up in price by between 40 and 80 per cent. Subesdised passenger fares are also to go up by 50 per cent.

    As the Governhemtn has already recommended only a four per cent cost-of-living increment, Israelis will have to tighten their belts.

    Israeli trade unions have shown no sign of abandoning the automatic link between wages and the cost of living. As prices rose sharply last year before this weeks rises, Histadrut, the Israeli trade union federation, is insisting on a 15 per cent cost-of-living increment from January 1.

  • Tags

  • Data

    Film ID:
    VLVA69YABL5D4S4FRVJYSM9QFO4AY
    Media URN:
    VLVA69YABL5D4S4FRVJYSM9QFO4AY
    Group:
    Reuters - Including Visnews
    Archive:
    Reuters
    Issue Date:
    30/01/1974
    Sound:
    Unknown
    HD Format:
    Available on request
    Stock:
    Colour
    Duration:
    00:01:18:00
    Time in/Out:
    /
    Canister:
    N/A

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