Finance Minister Hirchson
Photo: Dudi Vaknin
Defense Minister Peretz
Photo: Amir Cohen
Peretz: Don’t cut social budgets
Defense minister demands 2007 state budget cover war costs, but refuses increase in security budget come at expense of social, welfare funding
Addressing Prime Minister Ehud Olmert and Finance Minister Abraham Hirchson, on Sunday Defense Minister Amir Peretz demanded that the expenses of the war in Lebanon be covered with an addendum to the security budget in the 2007 State Budget. However, Peretz stipulated that the additional funds not come at the expense of social and welfare funding.
The Labor party chairman made the comments during a three-way meeting with Olmert and Hirchson on the principles of the 2007 budget proposal Sunday.
Hirchson responded to Peretz’ request saying he was determined to limit the 2007 budget deficit to security and rebuilding the north. On the other hand, he would ascertain that the remaining budget clauses would not increase beyond the rate established in advance. Hirchson reiterated the need to maintain the frame of the budget to ensure continued growth.
Ynet has learned that although Peretz claimed during the discussion that the increased security budget could be financed at the expense of other non-social budgets, later he conceded that he would agree to certain cuts in the security budget as long as the social and welfare budgets were not cut. The discussion will continue during the Sunday afternoon Socioeconomic Cabinet meeting, headed by Ehud Olmert.
Peretz unequivocally refused any cuts to the budgets for elderly and children and was also unwilling to reduce the increase in minimum wage established as part of the Labor-Kadima coalition agreement.
Peretz’ office said the minister did not quote the specific sum demanded to cover the war expenses. His office refused to comment on reports that the security establishment was demanding an additional NIS 11 billion on the 2007 budget for war costs.
