Israeli Treasury Rescinds NIS 3.8 Billion of Tax Hikes, Benefit Cuts

Last-minute reversal comes as Knesset Finance Committee begins voting on Israel's state budget; tax and allocation shuffle will partly compensate for cancelation of unpopular measures.

Moments before the Knesset Finance Committee began voting on Wednesday on provisions in the 2013 and 2014 national budget, the Finance Ministry rescinded some of the legislation's most controversial measures, clearing the way for Knesset approval but saddling the treasury with a funding hole to fill.