Finance Minister Abraham Hirchson met with eight ministers Wednesday to hear their budget demands, and try to convince them to approve the treasury's draft 2007 state budget at Tuesday's cabinet meeting.

The Pensioners Party secretariat will meet Thursday to be updated on the budget negotiations and to set guidelines for the next stage.

Hirchson hopes to meet with the rest of the cabinet, including ministers without portfolio, before the cabinet meeting in order to present the budget's highlights and win their support.

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He met with Shas chair Eli Yishai on Tuesday, and held meetings with Pensioners chair Rafi Eitan, Kadima ministers Gideon Ezra, Shaul Mofaz and Meir Sheetrit, Labor ministers Shalom Simhon, Benjamin Ben-Eliezer and Ofer Pines-Paz, and Ariel Attias of Shas on Wednesday.

Senior treasury officials termed the mood of the conversations as "post-budget crisis," and spoke of the understanding that if the government wants to stay in power, it will have to push through the budget in five days.

Hirchson will meet Thursday with Kadima ministers Shimon Peres, Tzipi Livni, Zeev Boim, Itzik Cohen and Avi Dichter, Labor ministers Yuli Tamir and Eitan Cabel, and Pensioners minister Yacov Ben-Yizri. The finance minister's most important meeting, with Labor Party chair and Defense Minister Amir Peretz, will be held early next week.

Eitan demanded in his meeting with Hirchson that the government uphold its coalition agreement and keep its promises with the Pensioners. This includes withdrawing plans to renege on NIS 100 million promised to the party for 2007 according to the coalition agreement, maintaining the real value of National Insurance Institute payments, and increasing aid to Holocaust survivors.

After the meeting, a team of treasury officials and party representatives was appointed to broker a compromise. Eitan said his party did not make an ultimatum to the finance minister or Kadima. The party emphasized Wednesday that unless an agreement is reached on the budget, the Pensioners will vote against the draft Tuesday. Hirchson and Eitan agreed to meet again Sunday for what will be their third meeting in nine days.

The budget question is still open for both Shas and Labor, with both parties' planning to reject the treasury's draft unless their coalition promises are upheld. Labor's central committee is to convene to discuss the budget, among other issues. Aides to Peretz reiterated Wednesday that the party chairman will not compromise on his demand for a minimum wage hike.

Olmert began his own round of discussions Wednesday with coalition and opposition members, meeting with MKs Zevulun Orlev (National Religious Party), Moshe Gafni (United Torah Judaism), Reuven Rivlin (Likud) and Simhon. Meetings with other MKs will continue Thursday.

Political sources believe that at this stage, Olmert will not make any changes to the ruling coalition, but he wants to keep his options open and let his partners know that he is doing so. Aides to the prime minister said they expect an agreement with the Pensioners by Tuesday that would give the government enough votes to pass the budget, even if Labor and Shas vote against it.