The government has approved the 2008 national budget, but Knesset Members say they won't pass it without a fight.
The 2008 national budget was passed by the government on Sunday evening by a large majority, 21-5. Only Transportation Minister Sha'ul Mofaz and the four Shas ministers - Yishai, Cohen, Nahari and Attias - voted against. Shas said the budget "hurts the weaker classes."
One of the main opponents of the budget, Public Security Minister Avi Dichter, who had said that the drastic cut in his ministry's budget would "destroy Israel's police," changed his vote to "yea" after he received a half-billion shekel increase.
The budget involves an across-the-board cut of 3%, except in the Ministries of Education, Welfare, Defense and Public Security, whose budgets were increased. The total budget tops out at 304.3 billion shekels, Israel's largest ever; one-sixth of it is earmarked for the Defense Ministry.
Prime Minister Ehud Olmert praised Finance Minister Roni Bar-On after the vote, saying, "For someone who was appointed Finance Minister only a month ago, your presentation and passage of the budget so efficiently is a nice achievement... Despite the financial troubles and shortfalls in some ministries, which I recognize, the increase in three critical areas - education, welfare and security - is an unprecedented historic achievement."
Minister Bar-On said, "This is a responsible and serious budget, one that maintains security, as well as the budget framework and market economy."
Transportation Minister Sha'ul Mofaz walked out of the budget deliberations in protest of a massive cut in his department. However, government officials said the Transportation Ministry has some 200 million unused shekels left over from last year's budget.
Shas officials said the additions to the Welfare Ministry were of a minor nature, while other areas were cut significantly. Among the new decrees: A 1% salary cut for public sector employees, price hikes for desalinated water, various cuts in benefits for the weaker classes, minor salary cuts for standing army non-combat employees, a drop in tax rebate interest from 4% to 3%, and many more.
MK Yossi Beilin of the left-wing Meretz party attacked both the budget and the coalition that approved it. "The combination of Kadima, Labor and the Pensioners has produced piggish capitalism that can easily compete with the Netanyahu years," Beilin said.
Other MKs, even from the coalition parties, also said they would work to have the budget changed, and would not support it in its current format. Labor MK Ophir Pines, for instance, said the budget is "very problematic" and must be changed significantly.