Following a grueling 12-hour marathon cabinet session, the government ministers approved last night the Finance Ministry’s proposed 2003 national budget by a close 14-12 margin. The Likud, National Religious Party, Center Party, and Yisrael B'Aliyah ministers backed the proposal, while Shas and Labor representatives voted against the plan. The budget calls for major spending cuts in the areas of welfare payments, defense, education, and other sectors. The NRP ministers said that they succeeded in obtaining changes that would prevent the closing of schools in the periphery, would save thousand of technological education hours, and more.
Finance Minister Silvan Shalom acknowledged that the plan hits the lower classes, but said, "We did not touch 'health care and free education for all,' and we also decided not to touch unemployment payments. But regarding guaranteed income payments, we decided to correct some distortions. We're going with a plan that gives preference to those who work as opposed to those who do not for whatever reason..."
Histadrut Labor Union leader Amir Peretz, as well as politicians of the left, had strong criticism of the government's new budget plan. Peretz said that the proposal does not serve the interests of the people, and called on the Shas and Labor parties to resign from the government and work towards new national elections. The real battle for the budget will be in the Knesset, beginning at the end of October.
Finance Minister Silvan Shalom acknowledged that the plan hits the lower classes, but said, "We did not touch 'health care and free education for all,' and we also decided not to touch unemployment payments. But regarding guaranteed income payments, we decided to correct some distortions. We're going with a plan that gives preference to those who work as opposed to those who do not for whatever reason..."
Histadrut Labor Union leader Amir Peretz, as well as politicians of the left, had strong criticism of the government's new budget plan. Peretz said that the proposal does not serve the interests of the people, and called on the Shas and Labor parties to resign from the government and work towards new national elections. The real battle for the budget will be in the Knesset, beginning at the end of October.