According to Budget Director Kobi Haber, the total cost of the disengagement plan will be approximately NIS 5 billion—NIS 2 billion for the security forces (IDF and police) and the rest for compensating residents and owners of businesses in the Erez industrial zone. These sums will mostly be spread over 2005 and 2006.
Haber added that NIS 2.2 billion of the total cost of the disengagement plan will be allocated in 2005. According to an agreement reached between the Ministry of Defense and the Ministry of Finance, the security forces will receive only 600 to 800 million sheqels in 2005, with the rest spread over the coming years.
The Ministry of Finance estimates that, in terms of cash flow, the NIS 2.2 billion allocated in 2005 will suffice for carrying out the plan in that year. If costs exceed due to changes in the evacuation and compensation bill, the excess will be funded in the framework of the State budget.
