Subscribe to Print Edition | Mon., December 24, 2007 Tevet 15, 5768 | | Israel Time: 22:59 (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

Labor MK Avishai Braverman. (Ofer Vaknin) del.icio.us Digg It!  new Last update - 22:56 24/12/2007 Finance Committee passes budget, Economic Arrangements Law By Zvi Zrahiya, Haaretz Correspondent Tags: Economic Arrangements Law  The Knesset Finance Committee Monday passed the 2008 state budget and the Economic Arrangements Bill, after agreeing on a number of changes with the Treasury that will cost NIS 1.3 billion. The Knesset plenum is scheduled to vote on the Economic Arrangements Law W Advertisement ednesday, and on Thursday it will vote on the 2008 budget. The changes made by the committee include: cancellation of the imposition of National Insurance Institute (NII) payments for housewives, worth NIS 450 million; cancellation of the cost-of-living freeze for NII allowances, worth NIS 125 million; cancellation of the 4 percent cut in allowances; an additional NIS 150 million for the Law to Encourage Capital Investments; long school days for 11th and 12th grades, worth NIS 250 million; NIS 150 million more for the drugs in the health basket; and cancellation of a NIS 50 million cut in the fund for demobilized soldiers. These sums will be offset by a cut in the budget and use of unspent funds. The committee session opened only after an agreement was reached between the Finance Ministry's budgets director Kobi Haber and MK Avishai Braverman (Labor), who had demanded raising spending in 2008 by 2.5 percent more than the 2007 budget, instead of only 1.7 percent. Instead, it was decided to establish a team lead by Braverman that will formulate proposals by April 2008 on raising the budget deficit. These recommendations will be presented to the treasury in advance of the 2009 budget deliberations. Braverman said he is pleased with the agreement: "Israel needs a budget that is more responsive to the periphery." The agreement with various coalition factions: Labor, Shas, Pensioners and Yisrael Beteinu was reaffirmed, including the cancellation of a number of proposed decrees against welfare spending worth NIS 755 million. It was also agreed with Haim Oron (Meretz) that life-saving drugs will be removed from the health funds' supplemental insurance policies in return for a NIS 370 million addition to the health basket for these drugs over the three-year period 2008 to 2010. However, members of the Clalit and Maccabi HMOs who have already started paying for the drug coverage in the supplemental insurance will continue to receive the drugs without any time limitation. Others with the additional insurance will receive the drugs for 15 months. The drug basket in 2008 will now be NIS 450 million instead of the treasury's proposed NIS 300 million. Another NIS 50 million will be added to the health basket for vaccinations and population growth. The budget for capital investments under the auspices of the Investment Center will rise to NIS 300 million in 2008, instead of the proposed NIS 150 million. The Finance Committee agreed to another compromise over spending on municipal elections: funding will be set at NIS 42 per voter instead of the present NIS 49. The treasury had asked to reduce this figure to NIS 34per voter, but MKs presented a united front against the cut in campaign funding. The compromise will save NIS 50 million. Related articles: Treasury demands billion-shekel cut due to welfare spending Barak: Labor Party won't support budget if stipends remain frozen Taub Center: 2006 economic growth did not reduce social gaps or help the weak Health Ministry memo: New meds to cost double the amount budgeted 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 Gov't delays decision on easing criteria for freeing Palestinians Responses: 157 Gideon Levy: Don't be fooled by impression of quiet in West Bank Responses: 160 Akiva Eldar: Why can't Israel's left make peace demands? Responses: 44 Shimon Peres online: Celebrating the 60th anniversary of an int'l vote of courage Responses: 50 Rosner's Domain Ron Paul insists: 'Israel encourages Americans to go into Iran' Support Israel, or support Jerusalem? (WTR) Poll: A cease-fire with Hamas, good or bad? Romney to Evangelicals, like Messianic Jews to Jews (WTR) More Headlines 22:55 Foreign Min. believes Syria waiting out Bush before making peace deal 22:53 IDF Advocate General rules cluster bomb use in war was legal 22:18 Gov't delays decision on easing criteria for freeing Palestinians 09:42 Orthodox rabbi to oversee Reform conference in Jerusalem 22:47 Tourists crowd Bethlehem for Christmas festivities 22:56 Finance Committee passes budget, Economic Arrangements Law 22:22 Second round of talks between Israel, PA ends in disagreement 21:44 Iran MP: Tehran to issue tenders for 19 nuclear power plants soon 14:09 Palestinians: IDF troops kill two Hamas militants in Gaza air strike 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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