To finance the Apache helicopter deal, Israeli finance requires a comprehensive reduction in the ministries’ budgets

Tel Aviv - Ofoq News - The Israeli Ministry of Finance intends to request the Knesset’s approval to make a comprehensive reduction in the budgets of all government ministries without exception, to finance urgent security activity, less than two weeks before the Knesset elections, in a step described by Israeli media as exceptional.

Yedioth Ahronoth newspaper reported that the Ministry of Finance is awaiting Prime Minister Benjamin Netanyahu's decision regarding the size of the reduction, for which estimates range between one billion and three billion shekels.

The newspaper indicated that one estimate suggests that the ministry will seek to reduce the budgets of civilian ministries in an attempt to save the deal to purchase 12 Apache helicopters, which faltered in recent days after the Israeli security establishment did not sign the agreement and did not transfer the required amount upon completion of the request.

The deal faltered after Boeing granted the Israeli security establishment three extensions to the deadline for completion. A dispute broke out between the Ministry of Finance and the Israeli Army over about $300 million of the cost of the deal, or approximately one billion shekels.

As the dispute continued, the deadline expired on October 7, and Boeing announced that, in the absence of signing the contract, it would turn to other parties on the waiting list to purchase the helicopters.

The report pointed out that the state budget does not include funding to purchase these helicopters, which means that saving the deal will require a comprehensive reduction in the ministries’ budgets, after the deal faltered despite more than a year of planning it.

The government faces two basic issues: the possibility of obtaining Knesset approval for a comprehensive reduction about ten days before the elections, and the availability of a majority in support of it. It is also not yet clear whether the reduction will be allocated to an advance payment only, or to cover the cost of the entire deal, which is estimated at about one billion dollars.

The newspaper quoted a senior official in the Ministry of Finance as saying that the ministry is awaiting Netanyahu’s approval and obtaining a legal opinion authorizing the implementation of a reduction in the budgets of all ministries a few days before the elections.

On the other hand, ministers have previously warned that their ministries have reached a stage where it is no longer possible to make additional reductions without causing serious harm to citizens.

According to the report, it is still unclear whether all ministers will support the reduction upon voting, including ministers whose chances of obtaining seats in the next Knesset are not guaranteed, according to electoral estimates.