The Israeli government is convened at this hour to discuss Finance Minister Silvan Shalom\'s proposed 2002 budget cuts. Coalition members of the Shas and Am Echad Parties oppose the proposed budget, set to be voted on later today. Shas party ministers are upset, amongst other things, about a proposed trim of some NIS 1.2 billion off the child-allowance payment allocations. Under the plan, the ceiling for receiving child benefits would be reduced from age 18 to 15. Also, income criteria would become a basis for receiving child-allowance.
Several groups are staging protests against the budget cuts outside of government offices this morning. They include Negev desert residents, students, and the disabled who all feel that the proposed cuts would negatively affect their status.
The Labor party, whose ministers met with Prime Minister Sharon today to discuss the plan, will vote against the budget, unless cuts are made in areas that include support for Jewish communities in Judea, Samaria, and Gaza. On the other hand, Likud ministers will apparently support the budget cuts, despite earlier conflicts between the Likud Education and Finance ministers. The Governor of the Bank of Israel, David Klein, stated that if the budget is not approved, he will be unable to approve a cut in interest rates. Klein said at a press conference yesterday that the financial responsibility in the proposed budget is part and parcel of an overall plan, which includes the financial incentive of lower interest rates on borrowed funds.
Several groups are staging protests against the budget cuts outside of government offices this morning. They include Negev desert residents, students, and the disabled who all feel that the proposed cuts would negatively affect their status.
The Labor party, whose ministers met with Prime Minister Sharon today to discuss the plan, will vote against the budget, unless cuts are made in areas that include support for Jewish communities in Judea, Samaria, and Gaza. On the other hand, Likud ministers will apparently support the budget cuts, despite earlier conflicts between the Likud Education and Finance ministers. The Governor of the Bank of Israel, David Klein, stated that if the budget is not approved, he will be unable to approve a cut in interest rates. Klein said at a press conference yesterday that the financial responsibility in the proposed budget is part and parcel of an overall plan, which includes the financial incentive of lower interest rates on borrowed funds.