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Israeli prime minister wins OD on austerity budget

Prime Minister Yitzhak Shamir's Cabinet, faced with a parliamentary challenge to topple it from power over Israel's severe economic crisis, unanimously approved an austerity budget of $20 billion. The decision Sunday was a crucial victory for Mr. Shamir, who reportedly threatened to resign unless Cabinet members agreed to steep cutbacks in government spending.

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Finance Minister Yigal Cohen-Orgad pushed for the austerity budget, saying government expenditures must be cut as a first step in reducing record 190.7 percent inflation and a staggering $5.1 billion balance-of-payments deficit.