A new report released on Wednesday accuses the government of allocating Arab communities only 10 percent - instead of the 30 percent pledged - of the budgets for rebuilding Israel's north in the wake of the war in Lebanon.

The Mossawa Advocacy Center for Arab Citizens in Israel said that out of a total of NIS 4.25 billion only NIS 400 million had been allocated to the Arab sector. Mossawa based its report on data collected from official government decisions and the 2007 State Budget bill.

The Prime Minister's Office Director General Ra'anan Dinur declared after the war that the state would rebuild communities damaged in the war.

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At the time, Dinur promised that a third of the funds to be allocated to Arab communities, a third to Jewish communities and a third to national infrastructures in the region.

This division was to reflect the size of the Arab sector, constituting approximately 50 percent of the region's population.

The report, compiled by Mossawa economist Amin Fares, was submitted to the Knesset Finance Committee as well as to the chairs of the other Knesset committees. The group sent a letter to parliamentarians urging them to intervene in the negotiations on the 2007 State Budget in order to secure additional funds for the Arab sector.

Mossawa is demanding that the state allocate approximately NIS 1 billion to the development of the Arab sector in 2007.

"Once more we find ourselves facing gaps between the declarations about affirmative action and a discriminatory reality," the group said in a statement.

"It is time to put an end to the growing economic differences in infrastructures between Jews and Arabs," the statement said.