Treasury budget cuts include 5-10% cuts in CEOs, MKs, ministers' salaries
Heads of the Ministry of Finance presented the principals of the NIS 13 billion emergency economic plan to Prime Minister Ariel Sharon. The proposals include 5-10% cuts in the salaries of public sector CEOs and wages for Knesset members and ministers. If Sharon accepts the plan, it will be submitted to the Knesset for ratification.
During the late night meeting, Sharon was presented with key economic figures including the drastic drop in state revenue from tax collection which explains the treasury proposal to increase the deficit target from 3% to 3.5-3.9%.
The expanded deficit amounts to another NIS 4 billion in government spending, while the program also calls for NIS 6 billion in budget cuts and an additional NIS 3 billion in taxes.
Sharon will meet with treasury officials again tomorrow to discuss the plan after consulting various entities on the effects of the program on various population segments, such as the item cutting welfare benefits to those who have not served in the IDF.
