Subscribe to Print Edition | Thu., August 14, 2008 Av 13, 5768 | | Israel Time: 02:48 (EST+7)
Haaretz israel news English
web haaretz.com
  Back to Homepage
Rosner's Domain
Diplomacy
Defense Jewish World Opinion National
Print Edition
Car Rental
Books Haaretz Magazine Business Real Estate Easy Start Travel Week's End Anglo File
The 2009 budget / Bar-On's wily maneuvering
By Moti Bassok
Tags: finance, budget, Israel 

Finance Minister Roni Bar-On executed two clever maneuvers relating to the 2009 budget, which currently has a NIS 7 billion shortfall. In previous years, the treasury would propose a list of suggested cuts, sparking months of draining battles with cabinet ministers. But Bar-On decided "never again." Instead, he told the cabinet: You're the sovereign, you decide. You decide how much to cut and where. You decide between defense and welfare.

The second maneuver was even craftier. The government usually finds it much harder to cut the defense budget than to cut from other ministries, and this has been even more true since the Second Lebanon War. So Bar-On set a trap. Personally, he said, he recommends cutting a mere NIS 2.1 billion from the NIS 56 billion defense budget, inferring that if we do that, we can get away with minimal cuts in other items. The alternative is a long list of steep cuts in welfare payments, including old-age pensions, child allowances and maternity leave. So, go ahead - you decide.

Bar-On would like the cabinet to approve the 2009 budget before his Kadima Party holds its primary next month. That means the cabinet would have to hold at least two meetings on the budget, including a vote, in the next four weeks. But given the government's weakened condition, the election fever in Kadima and the severity of the proposed budget cuts, it seems doubtful that Bar-On will achieve his goal.
Advertisement
Why does he care? For two reasons. First, the cabinet's approval would bind any new government that might arise following the Kadima primary, and Bar-On believes the current budget is a good one. Second, the law states that the budget must be submitted to the Knesset no later than 60 days before the end of the year. And Bar-On knows that if the budget is not approved before Kadima's primary, it is unlikely to be approved before the end of the year.

One thing, however, seems certain: Even if the cabinet approves the budget, its chances of passing the current fragmented Knesset by the December 31 deadline look close to zero.
Bookmark to del.icio.us  
 
Safe haven reached
200 fleeing Georgia after the outbreak of hostilities arrive at Israel's Ben-Gurion Airport.
Man dies of 'broken heart'
Severely disabled man dies of a heart attack after his long-term girlfriend was arrested by Immigration Police.
 Read & React
U.S. puts the brakes on Israeli plan for strike against Iran
Responses: 337
Settlers vow to fight PM's plan to pull out of West Bank
Responses: 71
Uzi Benziman: The ultra-Orthodox are taking over Jerusalem
Responses: 38
Report: Syria taking preventative steps, fearing Israeli strike
Responses: 39
Israeli journalist seriously hurt in Georgia returns home for treatment
Responses: 29


More Headlines
02:41 Georgia president denies Israel halted military aid
02:48 Israel thought Georgia, Russia headed for war back in 2007
23:09 Moscow agrees to stick to truce, as Rice threatens Russian isolation
23:55 Lebanon and Syria agree to establish full diplomatic ties
23:42 Report: Fearing Israeli strike, Syria taking preventative steps
22:14 Ahmadinejad: West must quit support of dying Israeli regime
17:13 Prof. charged with incitement to violence for comments on Gay Pride parade
01:47 Palestinian poet Mahmoud Darwish buried in Ramallah with highest honors
08:14 Haaretz newsletter: All the news from Israel direct to your inbox
01:42 VIDEO / Israeli swimmer Gal Nevo reaches Olympic 200m medley semifinals
20:06 U.S. puts brakes on Israeli plan for attack on Iran nuclear facilities
21:04 Police: Huge drop reported in pirate radio interference at B-G Airport
19:17 Israel gives U.S. green light to supply PA police with flak jackets
17:57 IDF probe clears tank crew in death of Gaza journalist last April
22:03 Man 'dies of broken heart' after cops nab illegal immigrant girlfriend
Previous Editions
Special Offers
Advertisement
Fattal Hotel Chain
Perfectly located hotels on best resorts of Israel.
Isaac Maimon at Dreamshoppe
Special summer sale. Make an offer now. You will be surprised.
MBA in Israel in English
APPLY NOW! Limited spaces available
Israel's Premier Real Estate Website
www. israel-property.com
Yossi Avrahami Presents:
New Luxurious Projects in North Tel Aviv & Eilat
Your vacation starts here
Israel Travel Center Guaranteed Lowest Rates
Hebrew Summer courses
From $39.95
ISRAEL BONDS Build Israel
Israel bonds - a multi-purpose way to celebrate Israel's 60th
Eldan Rent a Car
Israel's leading car rental company offers you a 20% discount on all online reservations
Junkyard
Junk a car - get free towing nationwide and a tax-deductible receipt
Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | Underground | Site rules |
Real Estate in Israel | Travel to Israel with Haaretz | Hotels Israel | Restaurants Israel | Tourist attractions Israel | Shops Israel
birthright Israel | Search engine marketing
Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.
© Copyright  Haaretz. All rights reserved