The Adva Center, a non-partisan policy analysis organization, stated Tuesday in its analysis of the 2007 budget that the first decade of the 21rst century, marked by a continuing erosion of the monies alloted to social services, will go down as a lost century for Israelis.

The report, presented to the Knesset Tuesday, cites the impending cuts to social services in the 2007 budget, together with projected 2008 cuts, as the cause of deterioration in the welfare of the public over the last decade. The report also cites the extensive cuts already suffered by social services between 2001 and 2004.

The Adva Center, an organization that provides information on equality and social justice in Israel, concluded that in 2001 the social services budget per person stood at NIS 13,301, whereas in 2007 it will shrink by 12 percent to NIS 11,679 per person.

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The budget allotted for students in elementary, middle and high schools will be 16 percent lower in 2007 than in 2001. The budget allotted for higher education will drop by 15 percent per student in 2007. Budgets alloted to the National Insurance Institute, development in education and health systems, as well as grants for professional training and research and development have also suffered significant erosion since 2001.

In contrast, between 1998 and 2007, the defense budget was enlarged by NIS 37.4 billion. In 2003 and 2004 for example, the increase in the defense budget dedicated to dealing with the Intifadah accounted for 12 percent of the entire yearly defense budget. In the 2007 budget, the increase granted to the defense establishment will account for 9.5 percent of the yearly sum.

"When the treasury promises that the social gaps will be diminished after four consecutive years of economic growth, it is an empty promise," said Dr. Shlomo Svirsky, who heads the Adva Center's budget analysis.

"The Israeli public's only hope is a change in policy, much more than economic growth," he added.