US cuts military aid to Israel by $150m

US officials have recently told the Israeli Finance Minister Yuval Steinitz that the across-the-board cut in the US budget will be decreased from 8 percent to 5 percent, reports reaching here from Israel said Thursday. As a result, the security aid granted to Israel will be cut by USD 150 million in the upcoming year and not by USD 250 million as previously expected, Yediot Ahronot reported on its website Ynet. In addition, the cut will have immediate repercussions on Israeli companies providing products and services to the American government, including the military industries. The reduction of the budget cut scope will moderate the hit to the Israeli economy and the State's income from taxes, the report added.