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Cabinet announces aid package for south accompanied by cuts in public spending

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Israel’s cabinet yesterday narrowly approved to cut public spending by two per cent in order to offset the cost of Operation Protective Edge.

It is estimated that the 50 day conflict could cost the Israeli economy £1.51 billion according to the Guardian. Analysts have also predicted a decline in GDP growth. In addition, over the weekend the Prime Minister’s Office announced an aid package for southern communities hit hardest by the Gaza conflict, worth £2.5 million.

However, that in itself is proving controversial as the new funds will be handed to communities within a seven mile radius of the Gaza Strip. As a result, it does not include cities such as Ashkelon, Ashdod and Beer Sheva, which were among the areas hit hardest by Gaza rocket fire and subsequent disruption to everyday life. Ashkelon Mayor Itamar Shimoni commented, “It’s inconceivable that the hardest hit city in Israel won’t get even a shekel of aid from the State.”

Meanwhile, a small cabinet majority yesterday approved a decision to cut government spending by two per cent, apart from defence. Three ministers voted against the measures, two abstained. Prime Minister Benjamin Netanyahu commented, “As we saw recently, defence comes before all else.” According to Ynet, the biggest proposed cuts will come from the education and welfare budgets. Speaking to Army Radio, Welfare Minister Meir Cohen asked, “From whom will we take? From those who have nothing to put in their children’s sandwiches for school?”

Finance Minister Yair Lapid, who has vowed not to raise taxes and Prime Minister Netanyahu were heavily criticised by opposition and Labour Party leader Isaac Herzog, who said that, “The prime minister and finance minister are harming the weakest links in the Israeli public, the needy and the periphery.” Meanwhile, Shas leader Arye Deri called the budget cuts “scandalous and audacious.”

The controversial cuts could add further complications to the 2015 state budget, which is set to be presented to the government in the coming weeks.