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del.icio.us Digg It!  new Last update - 09:35 23/12/2007 Treasury demands billion-shekel cut due to welfare spending By Zvi Zrahiya, Haaretz correspondent Tags: Israel, budget, Roni Bar-On 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 Sunday 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 Bye bye Borat Sacha Baron Cohen will reportedly retire his much-loved alter-egos Borat and Ali G. Divided reformists Reform head Eric Yoffie slams a vote on Jerusalem by the Conference of Presidents.

Today Online Israel fears clash with U.S. over impasse in peace talks Responses: 73 Reform head: U.S. Jews mustn't oppose compromise on J'lem Responses: 21 Israel expands plans for new homes in E. J'lem, W. Bank Responses: 2 Meron Benvenisti: Israeli Arabs must stop mourning Nakba Send response Haaretz.com TV: Darfur refugee with cancer is still in jail Send response Rosner's Domain Riedel: "Israel will attack Iran" (WTR) Hijacked by the demanding, spoiled Bar Mitzvah families Romney to Evangelicals, like Messianic Jews to Jews (WTR) Rosner's Guest: deNazify the Palestinian culture More Headlines 11:20 PM rejects Hamas offer of Gaza Strip cease-fire 11:23 Israel expands plans to construct new homes in E. J'lem, W. Bank 10:16 Israel fears crisis with U.S. over impasse in peace talks 09:18 Reform head: U.S. Jews must not oppose compromise on Jerusalem 04:28 Religious outpost takes over secular settlement in West Bank 09:53 New talks between lecturers, Finance Ministry break down 10:26 Radical Black Panthers bury group's leader Sa'adia Marciano 09:35 Treasury demands billion-shekel cut due to welfare spending 03:03 Legal effort slows building for Arabs in East J'lem village 01:01 Police bust mastermind burglar 'The Brain' breaking into Judaica store Previous Editions Select Day 21 dec 20 dec 19 dec 18 dec 17 dec 16 dec 14 dec 13 dec 12 dec 11 dec 10 dec 09 dec

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