ISRAEL BIDS TO SLASH INFLATION

Israel's parliament approved a $29 billion austerity budget Thursday but shelved a vote on controversial payments for Jewish settlements, religious institutions and ailing kibbutz collective farms. Left- and right-wing partners in the government agreed to approve a lump sum for 1989-90 and argue details later.

The budget cuts food and transport subsidies, reduces the number of state employees by 3 percent and makes other economies in a bid to slash inflation to 10 percent.

Inflation has stood at 21 percent in the past 12 months.

Recommended: The 'sequester': how three Americans see it working so far

Finance Minister Shimon Peres said money for the disputed programs could be taken from $1 billion budgeted as a reserve for unforseen requirements.

Share this story:

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...