The government will vote tomorrow on Finance Minister Silvan Shalom\'s proposed 2002 budget tomorrow. The proposal includes a cut of one billion shekels from the Defense Ministry budget, an across-the-board cut of 3% in the other government ministries, and the freezing of the Negev and child-allowance laws. The plan also includes steps to reduce unemployment, including a reduction in unemployment benefits and a reduction in the number of foreign workers; those who have overstayed their visas will be expelled and special fees will be imposed on employers of foreign workers. The plan is not expected to include new taxes, but will allow the Finance Minister to impose a one-time fee on those who earn over 30,000 shekels a month.



Residents of the Negev threaten severe repercussions if their benefits are eliminated, and even closed off many highways to their cities today. Coalition parties Shas and United Torah Judaism threaten to vote against the budget if the monthly child allowances for families with many children are not increased. Histadrut chief MK Amir Peretz, leader of the Am Echad party, said today that if the budget cuts are approved, his party\'s two MKs will quit the government. He objects to the freezing of national insurance payments and to the removal of any benefits from pensioners and the lower-income classes.



Shas leader Interior Minister Eli Yeshai says that his party plans to vote against the proposed budget both in the government and in the Knesset. \"The proposals are a death blow to needy families,\" he said, \"and some 80% of the cuts are at the expense of the weaker classes.\" Yeshai plans to propose alternatives that will involve increasing the upper classes\' share of the economic burden. \"Prime Minister Sharon would be well-advised not to rely on support from the Labor and opposition parties to pass the budget,\" Yeshai warned, \"as this would buy him some extra time at the expense of the government\'s long-term viability.\"