The cabinet has approved Prime Minister Sharon’s proposal to transfer 200 million shekels to the Jerusalem municipality during the course of this year, mainly for services in eastern Jerusalem. The money will be used for new classrooms, transportation needs, construction and housing, tourism, and more. A special cabinet meeting on Jerusalem was held yesterday to \"emphasize the government’s policy of strengthening Jewish sovereignty throughout the capital,\" at which Sharon said, \"We have taken action to restore Israel\'s full sovereignty over Jerusalem by halting the Palestinian Authority\'s activities there. That action, which we of course will continue, must be supported and strengthened by further actions, both in the eastern part of the city and the western...\" A statement released after the meeting said that the multi-year plan for the development of infrastructure and public services in eastern Jerusalem will be accelerated, with the aim of reaching equality in these areas between the city\'s two parts.



Jerusalem Mayor Ehud Olmert was on hand at the meeting to thank the government for its decision, which included:

* an increase in the grant for Jerusalem development of 60 million shekels;

* 65 million shekels from the Construction and Transportation Ministries for infrastructure and public services;

* 10 million from the Tourism Ministry for the tourism infrastructure;

* 10 additional million for the education budget;

* money for the construction of another 110 new classrooms from the Finance Ministry, at the expense of the quota of classrooms that are meant to be built in 2002, to the tune of some 55 million shekels.