Subscribe to Print Edition | Mon., December 24, 2007 Tevet 15, 5768 | | Israel Time: 02:46 (EST+7) web haaretz.com   Back to Homepage Rosner's Domain Diplomacy Defense Jewish World Opinion National Print Edition Advertising Books Arts & Leisure Business Real Estate Easy Start Travel Week's End Anglo File Hanukkah

del.icio.us Digg It!  new Treasury demands billion-shekel cut By Zvi Zrahiya Tags: budget, Israel, deficit The Finance Ministry will introduce a billion shekels worth of changes in the 2008 budget because of the Knesset's refusal to approve a number of major welfare decrees and cutbacks planned by the treasury. TheMarker has calculated the figures based on the data the treasury presented to the Knesset Finance Committee. Finance Minister Roni Bar-On is steadfast in his refusal to raise the budget deficit target for next year. Therefore, in return for canceling the various welfare cuts, MKs assume that the treasury will propose an across-the-board budget cut except for health and welfare spending, and a cut in various items agreed to in the coalition agreements. Or unspent monies will be used. Shas, Labor and the Pensioners Party have objected to most of the treasury's demands, so the coalition has no majority to pass the budget with these decrees included. Advertisement The Finance Committee is expected to vote on the 2008 budget today after an agreement on the various changes. It is also possible that other cuts will not take place for 2008, and there might be more funding for various causes. For example, Yisrael Beiteinu has agreed with the treasury for a transfer of NIS 120 million to four hospitals in Ashkelon, Safed, Tiberias and Nahariya. Among the main cutbacks that seem to have been removed from the 2008 budget are National Insurance Institute (NII) payments by housewives, at a cost of NIS 465 million. Knesset Speaker Dalia Itzik led the opposition to these payments. Another change from the initial budget proposal is the cancellation of a freeze in NII allowances. The update in allowances will add NIS 125 to the planned budget. In addition, a previous 4 percent cut in NII allowances will be canceled at a cost of NIS 180 million. The health basket will also be increased at a cost of NIS 130 million to NIS 150 million, in addition to the regular, planned increase of NIS 300 million for 2008. Another NIS 50 million cut had also been planned to hit the fund for demobilized soldiers, but there is unanimous opposition to this is in the Finance Committee. Increased funding for the Law to Encourage Capital Investments will add at least NIS 100 million to NIS 150 million to the treasury's planned budget, as coalition chairman Eli Aflalo reached an agreement to extend the law for another year. The treasury has budgeted NIS 150 million for this, but MKs are expecting the bill to reach NIS 250 million to NIS 300 million next year. Bookmark to del.icio.us Christmas blues Gazan Christians keep low profile during Christmas after activist slain. Absent voice An Israeli think tank says Israeli Arabs should take part in negotiations with PA.

Today Online U.S. plans confidential appraisal of Israeli and PA peace moves Responses: 235 Reform head: U.S. Jews mustn't oppose compromise on J'lem Responses: 63 Israel expands plans for new homes in E. J'lem, W. Bank Responses: 76 Meron Benvenisti: Israeli Arabs must stop mourning Nakba Responses: 83 Security cabinet okays funding for 'Iron Dome' rocket defense system Responses: 54 More Headlines 02:34 PM mulls easing criteria for freeing prisoners 02:13 African refugees urge Israelis to 'help us help ourselves' 23:41 Security cabinet okays funding for 'Iron Dome' rocket defense system 00:23 Fayyad's police take over as Bethlehem becomes latest city in PA security drive 23:19 Immigration to Israel in 2007 down 6%, at its lowest since 1989 23:06 Panel postpones budget vote as gov't MKs balk at stipend cuts 21:19 Gaza's Christians keep low Christmas profile after activist slain 22:38 Lebanon's opposition threatens to boycott presidential vote 20:48 Report: German man jailed for teaching his dog to perform Nazi salute 19:05 Think tank: Israeli Arabs should take part in negotiations with PA Previous Editions Select Day 23 dec 21 dec 20 dec 19 dec 18 dec 17 dec 16 dec 14 dec 13 dec 12 dec 11 dec 10 dec

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