Cuts necessary to cover over NIS 1.85 billion in payouts to coalition parties needed to pass budget.
Finance Ministry to introduce billion shekel cut in budget because of Knesset's refusal to approve welfare cutbacks.
Finance Minister Roni Bar-On is steadfast in his refusal to raise the budget deficit target for next year.
Treasury warns MKs against cancelling stipend freezes, welfare cuts; Pensioners threaten to bolt coalition.
The Law for Encouragement of Capital Investments will be extended for another year past its December 31, 2007 deadline, and not only the six months the Finance Ministry wanted.