Defense Minister Moshe Ya'alon and Finance Minister Yair Lapid agreed on Wednesday to set up a joint working group to help the determine the size of the defense budget for 2013 and 2014.
The announcement came following a meeting between the two ministers at the Defense Ministry in Tel Aviv.
The agreement is a reflection of the "complex economic situation in light of the deficit on the one hand, and the importance of security needs in light of threats and regional changes on the other," a statement by Ya'alon's bureau said.
A cut to the annual 60 billion shekel defense budget is expected, possibly of over 2 billion shekels.
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