The cabinet held a fiery meeting on Sunday when Prime Minister Binyamin Netanyahu’s move to cut the 2009-2010 budget was met with outspoken criticism by his ministers. Meanwhile the government approved three new ministries, a move which Kadima called “outrageous,” saying it would waste the public’s money.
“This will not be easy, but I believe we can pass a responsible budget and save the country from a crisis,” Netanyahu started off. “I believe that no Ministry will be able to avoid cuts.”
Finance Minister Yuval Steinitz presented a plan to cut the two-year budget by NIS 14 billion, in an effort avoid an anticipated NIS 46 billion budget deficit due to a decrease in tax revenues. “The economic crisis demands a clear economic policy which will reduce the budget deficit, stabilizing the economy,” he said. Steinitz emphasized that even with the cuts, the budget would still grow by 1.7 percent, or NIS 632 million.
Netanyahu and Steinitz will not have any easy time cutting corners as ministers across the political spectrum opposed any budget cut.
Defense Minister Ehud Barak said the government needed to increase, not decrease, the budget in order to properly meet the financial crisis. “We have to increase the budget beyond the 1.7 percent level in order to meet Israel’s economic needs as a result of the crisis,” he said. “Education and Security also need more funding.”
Shas agreed. “The lower class cannot be unduly affected,” Interior Minister Eli Yishai said. “This budget does not meet the needs of Israeli society.”
Even members of Netanyahu’s Likud party stood against him. “We will not allow the educational system to be hurt – we will not allow teachers to be fired nor budget cuts,” Educational Minister Gidon Sa’ar claimed.
Despite the Prime Minister's promise to cut back, the cabinet approved three new government ministries at the meeting, a decision which will cost the state for new offices and staff. Minister Moshe Ya’alon was named the head of a new Strategic Affairs Ministry, Dan Meridor will lead the Intelligence Ministry, and the new Public Relations Ministry will be headed by Yuli Edelstein.
Opposition party Kadima condemned the decision to enlarge, rather than cut back, on government spending. “In Israel there is a government which with the right-hand is making economic cuts which will hurt the poor and cause more unemployment, but with the left-hand is making sure to provide new offices for hundreds of its own supporters,” said the Opposition.