Knesset starts budget debate

Minister of Finance Abraham Hirchson has opened the Knesset debate on the 2007 budget proposal and the economic arrangements law.

The vote on the first reading of the bill will take place tomorrow. It is believed that the Ministry of Finance will have to have pay between NIS 500 million to NIS 1 billion, and drop some of the proposed austerity measures to ensure the budget bill passes its second and third readings.

The 2007 budget will total NIS 295.4 billion gross, and total government spending will reach NIS 242.6 billion. The key issue in dispute is welfare benefits. The addition of Avigdor Lieberman and his party Yisrael Beitenu to the coalition government is likely to guarantee Hirchson and Prime Minister Ehud Olmert a large majority for the budget proposal.

Both the prime minister and minister of finance aim to secure Knesset approval for the budget by December 31, and put an end to the ritual of recent years that delayed approval of the budget until the end of March.

Published by Globes [online], Israel business news - www.globes.co.il - on November 6, 2006