Israel’s Defense Ministry has suspended planned procurement contracts, slowed work on major research and development projects and warned of a wave of industry layoffs to come from programs it will be forced to ax due to budget shortfalls.

In its escalating battle with the Finance Ministry over supplemental funding for 2014, the MoD imposed a two-week freeze on planned military modernization contracts pending a bottom-up review of all non-fixed expenses.

In parallel, MoD has threatened to halt, by June 1, all Army, Air Force and Navy training and to drastically reduce ongoing operations. […]