By large, 17 vote majority. Several changes made during marathon cabinet debate, but framework remains unchanged, NIS 6.2 billion The cabinet approved the Treasurys NIS 6.2 billion budget proposal at the end of a marathon meeting which lasted over ten hours.. The PM gave Netanyahu his total support throughout the meeting, as he had promised. Only three ministers voted nay, Ehud Olmert, Avraham Poraz and Yisrael Katz. Defense minister Shaul Mofaz eventually voted aye, despite having a major verbal donnybrook with Netanyahu, during which the Finance minister accused his colleague of firing on his own forces. The defense budget remains by far the biggest, NIS34.3 million, a compromise between the NIS 36 billion demanded by Mofaz and the original 32 billion proposed by Netanyahu. Most of the red herrings the treasury had included in the budget as bargaining chips were excluded from the final proposal. These include cutting public transport subsidies for pupils, raising university fees, and cutting veterans benefits. The proposed tax on National Insurance old age pensions, to be imposed on wealthy pensioners was also dropped. The Education Ministry will receive a NIS 1.7 billion increase, to enable funding of the Dovrat reform. The Health ministry also received an increase to allow an update of the national health systems drug basket. The proposed 5% across the board cut remains in force, as do the plans to continue reducing public sector wages and workforce. Ehud Olmert, who is seen as Netanayhus main rival for leadership after Sharon has severely criticized the budget ever since it was first presented, saying it was unresponsive to the countrys social needs, and would exacerbate an already dangerously wide socio-economic divide. He has accused Bibi of deliberately creating a two state society, a privileged one for the haves, a marginal one for the others.
Agriculture minister Katz objected to the increased water prices for farmers. Interior Minister Poraz voted nay because of vthe treasurys unwillingness to increase local government budgets, despite the fact that many municipalities, even well run ones are in bad shape. Many municipalities have not been meeting their payrolls for several months, in some localities workers last saw a paycheck over a year ago. BPI-info
