Yesterday, Prime Minister Benjamin Netanyahu approved the interim recommendations of the Nagel Committee, chaired by Brigadier General (Res.) Prof. Jacob Nagel, examining Israel’s defense budget and the structure of its armed forces, and gave instructions to proceed with them. The decision was made after a session held by the committee in the Prime Minister’s Bureau in Jerusalem, with the participation of Minister of Defense Yoav Gallant and Minister of Finance Bezalel Smotrich.
The recommendations are based on a number of principles, among them the allocation of a dedicated budget for strengthening defense that cannot be used for other needs, integrating the committee’s final conclusions into any future budget plan, and exploitation of time-limited procurement opportunities. Even before the announcement from the Prime Minister’s Bureau, the committee placed an emphasis on reducing the burden on the state budget in 2025 and 2026, while taking into account the changing security situation.
The main matters in the interim recommendations are expansion of procurement of munitions and the air defense system; improving the maneuvering capabilities of the ground forces; strengthening naval superiority; and dealing with manpower issues. The recommendations also cover development of new methods of weapons development and production, and upgrading border defense systems.
The current recommendations do not include expanding budget frameworks approved up to now. The committee, which began its work last August after a delay of six months in forming it, is due to submit more comprehensive recommendations later. On the basis of the committee’s final report, the government is expected to make decisions on the addition of tens of billions of shekels to the defense budget over the coming years.
In addition to the budgetary recommendations, the committee plans to make recommendations for improving transparency and control in defense spending. The decision to expedite implementation of the recommendations comes against the background of the rapidly approaching deadline for approving the 2025 state budget, and the fighting in the Gaza Strip and Lebanon. The exact economic consequences of the proposed measures have, however, not yet been made public, and they are expected to become clear when the committee releases its final report.
Published by Globes, Israel business news - en.globes.co.il - on October 14, 2024.
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