Yesterday, Prime Minister Benjamin Netanyahu approved the interim recommendations of the Nagel Committee, headed by Brigadier General (res.) Professor Jacob Nagel, which studies the Israeli defense budget and the structure of its armed forces, and issued his instructions to move forward with their implementation. The decision came after a session held by the committee at the Prime Minister’s Office in Jerusalem, with the participation of Defense Minister Yoav Galant and Finance Minister Bezalel Smotrich.
The recommendations are based on a number of principles, including allocating a dedicated budget to strengthen defense that cannot be used for other needs, incorporating the committee’s final conclusions into any future budget plan, and exploiting limited-term procurement opportunities. Even before the Prime Minister’s Office’s announcement, the committee focused on reducing the burden on the state budget for 2025 and 2026, taking into account the changing security situation.
The main issues in the interim recommendations are expanding the scope of procurement of munitions and air defense system; Improving the maneuvering capabilities of ground forces; Enhancing naval superiority. And dealing with workforce issues. The recommendations also cover the development of new methods of weapons development and production, and the modernization of border defense systems.
The current recommendations do not include expanding the budget frameworks approved so far. The committee, which began its work last August after a six-month delay in its formation, is scheduled to make more comprehensive recommendations later. On the basis of the committee’s final report, the government is expected to make decisions regarding adding tens of billions of shekels to the defense budget in the coming years.
In addition to the budget recommendations, the committee plans to make recommendations to improve transparency and oversight of defense spending. The decision to accelerate the implementation of the recommendations comes against the backdrop of the approaching deadline for approving the state budget for 2025, and the fighting in the Gaza Strip and Lebanon. However, the exact economic consequences of the proposed measures have not yet been announced and are expected to become clear when the committee issues its final report.
Published by Globes, Israel Business News – en.globes.co.il – on October 14, 2024.
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