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Last update - 19:49 24/08/2008
Olmert slams Barak over absence from defense budget discussions
By Barak Ravid, Haaretz Correspondent
Tags: Israel, Bar-On, Olmert, Barak

Prime Minister Ehud Olmert lashed out at Defense Minister Ehud Barak during Sunday's cabinet meeting for failing to take an active interest in the defense budget, being discussed at the meeting, and not being present for the discussions.

Barak reportedly walked out of the meeting on several occasions in order to consult with Histadrut labor federation chairman Ofer Eini and with Shas head Eli Yishai on the 2009 state budget, slated for vote later on Sunday.

Olmert took advantage of one of Barak's exits and said "We are now discussing the defense budget, which is a very important issue, and it's a shame the defense minister is not here to listen to the details."
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Earlier, Olmert slammed Labor and Shas ministers for threatening to oppose the budget.

"There are some loud and blabbering opportunists who are trying to thwart the passing of the budget," Olmert said, adding that debate is legitimate so long as the ministers stand behind a decision once it is made. Those who fail to accept the vote would give up their seat in the government, the prime minister said.

"I have heard warnings and political threats that compared the budget cuts to war," he said.

Olmert further said that Barak had earlier informed him that despite the Labor ministers' objection to the budget, they would not vote against it during Sunday's cabinet meeting.

Next year's budget will total NIS 319 billion, but where some NIS 7 billion in cuts will come from is still unknown. This is the main issue yet to be resolved.

The treasury has proposed two alternatives for the cuts, leaving the decision in the ministers' hands. The first option would make most of the cuts in the social-welfare budgets; while the second option is to cut defense spending.

The focus of Sunday's debate will be the treasury's request to trim between NIS 900 million and NIS 2.1 billion from the planned increase in the defense budget, as recommended by the Brodet Committee. The Defense Ministry, for its part, is demanding an additional NIS 2 billion in both 2008 and in 2009, mostly to make up for inflation.

"If we had limitless funds we would gladly allocate them to all the ministries, but that is not the reality and so we must exercise restraint and caution," Olmert said, adding he had no intention of postponing Sunday's vote.

Social Affairs Minister Isaac Herzog said on Saturday that talks with the Finance Ministry had reached a dead end. "The Finance Ministry is not willing to compromise and has been extremely inflexible," he said.

Public Security Minister Avi Dichter and Transportation Minister Shaul Mofaz, both of Kadima, also expressed their resistance to the cutbacks. "The current proposal points to clear neglect of internal security in Israel," Dichter said.

Officials from the treasury and the Prime Minister's Office expect the decision on how much to cut from the defense budget to be made on Sunday, in a three-way meeting among Olmert, Bar-On and Barak. The PMO and treasury also expect the 2009 budget to pass the cabinet on Sunday, with the support of ministers from Kadima, the Pensioners Party and a number of Labor Party ministers.

Shas will vote against the proposed budget. The party is demanding increased child allowances, which is not included in the budget. Transportation Minister Shaul Mofaz (Kadima), a candidate to replace Olmert in the Kadima primary in September, is also expected to vote no on the budget. A number of Labor ministers will abstain or vote against.

The treasury said at the end of last week it was clear the budgetary framework would not be breached, and the spending targets have not - and will not - be changed. The 2009 budget includes a 1.7% spending increase over this year and a planned deficit of 1% of GDP.

Related articles:
  • Despite row over cuts, gov't likely to approve 2009 budget
  • Bar-On to gov't: Where shall we cut budget, defense or welfare?

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