Last update - 00:00 26/12/2006
Finance panel approves budget and Economic Arrangements Bill
By Zvi Zrahiya, Haaretz Correspondent
The Knesset Finance Committee on Tuesday approved the state budget and the Economics Arrangement Bill which accompanies the budget, paving the way for it to be raised for a second and third reading in the Knesset plenum.
The Knesset will begin the debate on the Economic Arrangements Bill on Monday and will vote on it on Wednesday.
The bill was approved by 10 MKs from within the coalition, while four MKs from the opposition opposed. MKs Shelley Yachimovich (Labor) and Ya'akov Litzman (United Torah Judaism) abstained. Yachimovich said she could not vote in favor of a budget which "reflects a distorted agenda or that presents a continuation of [Benjamin] Netanyahu's policies."
The committee weeded out eight of the law's 30 clauses and changed a number of proposed cutbacks. A majority for the bill was secured after the coalition factions backed down Monday from some of their monetary demands, and agreement was reached among the Prime Minister's Office, the Finance Ministry and the Yisrael Beiteinu faction.
The three-way agreement will transfer NIS 180 million to the war on drugs, to abolishing payment of the Broadcasting Authority radio and TV licenses by seniors, and to other causes. United Torah Judaism demanded the transfer of NIS 290 million to ultra-Orthodox institutions in return for a pledge that its MKs would abstain in the vote.
Tuesday morning a storm was raised in the committee when Yachimovich and MK David Tal (Kadima) voted for an objection to the law submitted by MK Chaim Oron (Meretz) by which the Economic Arrangements Law would be abolished in 2008. A 9-6 majority with 1 abstention voted against accepting the objection.
Coalition chairman MK Avigdor Itzchaky (Kadima) asked Labor faction chairman MK Yoram Marciano to replace Yachimovich, and he considered replacing Tal, but the substitutions were not implemented. Yachimovich said she opposed the Economic Arrangements Law because it hurt democracy.