TEL AVIV [MENL] -- Israel's government has approved a significant increase
in its defense budget amid an escalation of tension in the Middle East.The Cabinet of Prime Minister Ariel Sharon endorsed an increase of 4.25
billion shekels, or nearly $1 billion, for fiscal 2002. The increase was
approved by an 18-9 vote this week and is expected to be approved by
Israel's parliament.Israeli officials said the defense increase will be allocated for the
current war against the Palestinian Authority as well as for missile defense
and other long-term programs.In all, Israel's defense budget totals more than $10 billion for fiscal
2002. This includes more than $2 billion in U.S. military aid. Of the
increase approved by the Cabinet, 1.15 billion shekels [nearly $260 billion]
will be dispersed over the next three years.Earlier this month, the Cabinet approved a defense budget increase of
3.1 billion shekels, or more than $700 million, for fiscal 2002. This
increase was meant to ensure adequate military supplies, ammunition and
personnel in case of a regional war or prolonged conflict with the
Palestinians.Israeli military sources said the army has ended all missions against
Palestinian insurgents. They said the army has been ordered not to respond
to Palestinian attacks.The sources said they expect tensions in the region to escalate in wake
of this month's attacks on New York and Washington. They said Iraq is
expecting a U.S. offensive and Baghdad would probably respond with a missile
attack on Israel. Escalation along Israel's northern border
with Lebanon is also expected.Iraq is said to have between 20 and 50 Scud-class missile with the
capability of striking Israel. The sources said a major U.S. attack on the
regime of President Saddam Hussein could prompt an Iraqi nonconventional
weapons strike on Israel.
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