Prime Minister Ehud Olmert said Monday that, should the economic achievements of 2006 continue, the "minimum wage will reach $1,000 by December 2007."

Speaking during a Kadima Knesset faction meeting, Olmert called the 2007 state budget the first step in a social revolution, and strongly praised Finance Minister Abraham Hirchson.

The Knesset plenum is to begin the debate on the Economic Arrangements Bill on Tuesday morning, ahead of its second and third readings expected to take place Wednesday morning, to be followed by a debate in the plenum on the budget. Voting on the budget is expected to take place around 9:00 P.M. Wednesday.

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Olmert said the 5 percent growth in the Gross Domestic Product (GDP) in 2006 was "an amazing peak under the circumstances this year, with preliminary predictions of around 4 percent and during the Lebanon war coming down to as low as three percent." With regard to foreign investments, which reached $21.2 billion last year, Olmert said, "when investments increase usually it is spoken of as opportunities, but when credit rating companies increase the standing of Israel this is a vote of confidence in Israel's economic policies and those who manage it." Olmert said he believed unemployment would fall below eight percent of the civilian workforce, as opposed to 8.6 percent at present.

"It appears the budget will be approved on Wednesday right at the beginning of the civil new year, as it should. This has not happened for many years," Olmert said, adding that what was important was not that the budget be approved on time but that it would be approved without all the additions that come from political pressures. Olmert added that "the factions were always tempted to see to certain matters in order to get the credit, but this year everyone understood that the best credit is completing on time the correct and responsible process." Olmert thanked all the coalition factions for not giving into the temptation to "demand a little more."

Olmert said he would be holding wide-ranging discussions with the finance, labor, commerce and employment ministers on the progress and future of the Wisconsin Plan. Hirchson said "we have stretched all the parameters as much as we could and we must keep our feet on the ground. We must continue to act responsibly as leaders and the planning is for years ahead." Hirchson said funding for the medicine basket and other social issues "show that this government is really working for social issues and to close gaps. If any one thinks gaps can be closed in two days, they are wrong." Hirchson said the country was moving in the right direction to close the gaps.

Coalition chair MK Avigdor Itzchaky (Kadima) said a budget would soon be set for reinforcing buildings in the communities around Gaza by means of urgent legislation and in consultation with the finance minister.