Special report: Israel launches Gaza assault

Special report: New clash between Israeli, Lebanese troops

Special report: Israel-Lebanon Conflicts   [ Video ][Gallery

    JERUSALEM, Aug. 27 (Xinhua) -- Israel is to decide within a week on a massive boost to the country's defense budget over the next three years, Israeli newspaper Ha'aretz reported Sunday on its website.

    Israeli Prime Minister Ehud Olmert, Defense Minister Amir Peretz and Finance Minister Abraham Hirchson agreed Sunday morning to make the decision on defense budget within a week.

    Israeli defense officials are seeking about 6.8 billion U.S. dollars, mostly in fiscal 2007 and 2008, for resupplying, reacquiring weapons systems damaged during the Israel-Hezbollah conflict and preparing for a possible next war, including developing new arms.

    However, according to a senior defense establishment official, cabinet compliance to the demand would subjugate the entire civilian establishment to military demands and constitute a mortal blow to civil budgets, including infrastructure and education.

    The government economist said the demands are extravagant and would push Israel 20 to 30 years back economically, including a sharp drop in the standard of living.

    The 34-day-long conflict between Israel and Lebanese Hezbollah cost Israel about 5.2 billion dollars. Enditem