WORLD : Heated Israeli Defense Debate
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JERUSALEM — Israel’s central bank chief ignited controversy today by calling for cuts in the country’s massive defense spending, citing evidence that Syria and Jordan had reduced their military outlays.
Defense officials retorted that it was too early to judge and demanded an extra $150 million next year to cover the cost of fighting the Palestinian uprising in the occupied West Bank and Gaza Strip.
Bank of Israel Gov. Michael Bruno told the Finance and Defense ministries in closed-door meetings that the defense budget should be reduced, without proposing a specific figure, his spokesman Rafi Meron said.
Israel’s defense budget topped $5 billion in 1989, draining one-third of current government expenditure excluding debt service.
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