Defense to get NIS 4b in '07, child stipend cuts possible

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Over the past week, budget priorities for 2007 were determined in a series of high-level meetings. Prime Minister Ehud Olmert met with treasury and defense officials. Several decisions were made regarding the state budget for next year, which was slated for cabinet debate next Sunday.

The 2007 defense budget will increase by about NIS 4 billion, and northern communities will receive an additional NIS 1.5 billion in funding. Coalition parties will get the NIS 1.7 billion promised to them in negotiations to form a government and an additional NIS 3 billion will be directed to local government, education, healthcare and public security.

However, all the additional budgets promised to the Negev region will be postponed indefinitely and an Industry and Trade Ministry demand for NIS 1billion will be rejected.

Treasury officials on Friday told Trade Minister Eli Yishai that, due to budget constraints, child allowances may be cut in 2007.

Haaretz

[wakeme2008]

1. Can Olmert get anymore like Bush shiiiitt

:grr:

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2. Peretz opposes social welfare cuts in 2007 budget

Defense Minister Amir Peretz opposed Finance Ministry plans to cut child and pensioners allowances under a new draft of the 2007 budget aimed at covering the cost of the war in Lebanon.


During a meeting with Finance Minister Avraham Hirchson, Peretz also vowed to not give up a key labor election pledge to raise the minimum wage. Kadima agreed to Labor's demand to raise the minimum wage under a coalition deal signed after the general elections in March. (Tsvi Lavi)

http://www.ynetnews.com/articles/0,7340,L-3299110,00.html

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3. Treasury rejects most demands to increase defense budget

demands to increase its 2007 budget, saying fulfilling these demands would bring the country into economic regression.

Prime Minister Ehud Olmert, Finance Minister Abraham Hirchson and Defense Minister Amir Peretz met ON Sunday to discuss the proposed defense budget for the 2007 fiscal year.

The treasury rejected the defense establishment's request to add NIS 9.6 to its budget to better prepare for the country's next war, and denied its request for an additional NIS 3 billion for the Defense Ministry's basic 2007 budget.

The treasury recommended establishing a forum of senior finance and defense experts, to be handpicked by the national security council, to consider the requests.

Haaretz

[Scurrilous]

4. Labor threatens: We won't stay in government

Planned cutbacks by Finance Ministry disturb Labor ministers and MKs. Minister Shalom Simhon: 'No way will we stay in government if cutbacks pass.' Education Minister Yuli Tamir sends outraged letter to Finance Minister Abraham Hirchson, in which was written that 'he made a critical mistake.' MK Shelly Yacimovich: 'Kadima wants us out of government'

http://www.ynetnews.com/articles/0,7340,L-3299382,00.html

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"Ministers and members of Knesset from the Labor party declare unequivocally Monday that they will not be able to tolerate the cutbacks in the state budget by the Finance Ministry. Some of them are already threatening to break apart the coalition. Agriculture Minister Shalom Simhon said, "there is no way the Labor party will stay in the government if the suggested cutbacks are passed."

Simhon estimated in closed conversations that the party won't be able to accept the current budget and will demand that the Knesset make changes, primarily in regards to university tuition, minimum wage, and a substantial decrease in structural changes in the economy planned for next year.

MK Shelly Yacimovich criticized the budget presented by the Finance Ministry to the government Monday. According to her, "Kadima wants us out of the government. There is no other explanation for this plan." MK Ephraim Sneh said, "the treasury's cutbacks represent damage targeting those who carried the war on their shoulders: Soldiers and students."

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5. Budget proposal to undergo rewrite after coalition uproar

Finance Minister Abraham Hirchson on Monday delayed the publication of the 2007 tate budget proposal after details of the proposal were met with disapproval from coalition members.

Hirchson will make further adjustments on the proposal.

Senior cabinet ministers from the Labor Party threatened Monday to vote against the budget if the social clauses of the coalition agreement were not honored, saying, "it is possible that a crisis of this sort would cause Labor to leave the government."

Senior members of Kadima said Labor's reaction to the budget indicated a deliberate attempt by Defense Minister and Labor Party Chairman Amir Peretz to use the budget to cause a coalition crisis, to advance his party and enhance his public standing.

http://www.haaretz.com/hasen/spages/758222.html