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Finance Minister Roni Bar-On. (Eyal Warshavsky) 2009 budget deadlocked by Olmert investigations By Moti Bassok Tags: Ehud Olmert, corruption  The flurry of investigations into Prime Minister Ehud Olmert are paralyzing preparations for the 2009 budget, say treasury officials, warning that the budget probably won't be ready before next year. The prime minister's office already has postponed two budget meetings with Finance Minister Roni Bar-On and the treasury budgets director, in which Olmert was supposed to participate. The first meeting was about fiscal goals and the state of the economy, and had been scheduled for Monday last week. The second was about the budget composition and structural reforms, and had been scheduled for today. Olmert's office also canceled informal working discussions about the budget with the treasury chiefs, as meanwhile, investigators investigate allegations of corruption. Advertisement Also, the sheer weakness of the government, and the possibility of early elections, have raised doubt in treasury minds as to whether the coalition can push the budget through the Knesset before year-end. Nor are the treasury people optimistic that the cabinet will hold its first 2009 budget debate on June 10, as scheduled. Treasury officials haven't been this pessimistic about getting the budget through on time for years. They do say that Olmert will dedicate time tomorrow to economic matters, but the prime minister is supposed to take off for the U.S. tomorrow and his agenda is crammed. The procedure is for the cabinet to approve the budget proposal, after which it has to fight its way through the Knesset. If the 2009 budget doesn't pass the hurdles by the end of December, Israel will begin the year without an approved budget in place. Of course, this has happened before. In that eventuality, the ministries will simply function based on the 2008 budget - without the slightest deviation. No new plans may be approved, for example. Government spending won't be able to adjust for the natural increase of the population in 2008, point out the treasury chiefs, or to take various spending promises and reforms into account. Last week the Budgets Department at the treasury held two meetings on the 2009 budget, the first on its size and necessary cuts, and the second on structural reforms planned for 2009. The treasury officials claim that to adjust the 2009 budget to population growth, inflation expectations and other elements, NIS 12 billion has to be added over this year. That figure includes NIS 3 billion more for education, NIS 4 billion for security, and NIS 1.5 billion for healthcare. And that means that NIS 7 billion has to be cut elsewhere in the budget so total government spending doesn't break the bank next year, say the treasury chiefs. Budget talks are typically difficult, as coalition factions maneuver to obtain the most they can for their constituencies. Finalizing the budget takes much effort and finesse, and convincing the coalition members and Knesset to support sweeping budget cuts in all areas but the above-mentioned will take leadership. Olmert reportedly promised the treasury officials months ago that he'd tackle the budget negotiations by Passover, but it didn't happen. Related articles: Barak: Labor ministers will vote against government budget cuts Sneh: Budget fails to address security threat to home front Knesset plenum approves 2008 State Budget in third reading Bookmark to del.icio.us   Building Google How an Israeli hi-tech guru inspired Google's 'magic formula'. La femme Tzipi Colleagues regale the Sunday Times with stories of Livni's days on a Mossad hit team.

Read & React Germany: Transfer of bodies by Hezbollah is bid to advance prisoner swap talks Responses: 165 Report: Livni hunted Palestinian terrorists for Mossad in Europe Responses: 106 Barak and Olmert delay cabinet vote on Gaza Strip cease-fire Responses: 53 Israel urges EU: Show 'caution' in contacts with Damascus Responses: 86 Former minister and journalist Yosef Lapid dies at 77 Responses: 35 More Headlines 21:28 German FM: Transfer of bodies by Hezbollah is bid to advance swap talks 23:30 ANALYSIS: Return of bodies is another PR victory for Nasrallah 01:56 Official: Public pressure may force Olmert indictment 19:45 Olmert pays tribute to Yosef Lapid calling him a 'Jew through and through' 21:39 U.S. consulate working to get exit visas for Gaza students 23:19 Doctors protest rising violence against health personnel 00:47 Who didn't attend New York's Israel march? Israelis 11:26 Israel to build over 800 new homes in East Jerusalem areas 12:48 Experts fear nuclear know-how circulating on black market 17:42 Holocaust survivors from former Soviet Union awarded NIS 19 million 10:39 Report: Livni hunted Palestinian terrorists for Mossad in Europe 11:17 French court annuls Muslim's marriage because wife not a virgin 02:18 IDF soldiers: Nature authority killed dogs cruelly Previous Editions Select Day 01 jun 30 may 29 may 28 may 27 may 26 may 25 may 23 may 22 may 21 may 20 may 19 may

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