Olmert revises original NIS 1.2 billion cutback after fierce objections by ministers. Defense funds to be discussed separately. 'Cutbacks won't harm social, welfare projects,' says prime minister
The proposed cutbacks, explained Olmert, were meant to support educational and defense projects.
"I've instructed that the cutbacks must not harm social or welfare issues," he said.
'A socially responsible fiscal policy'
"No one likes cutbacks… adding to the budget always seems easier, but we have to preserve our economic achievements and have a socially responsible fiscal policy."
Both Labor and Shas ministers fiercely apposed the
proposed cuts. "We have plenty of budgetary reserves… I see no need for cutbacks at all, let alone on health and welfare," said Industry, Trade and Labor Minister Eli Yishai.
Prior to the vote on Olmert's motion, IDF Chief of Staff Lt.-Gen.
Gabi Ashkenazi reviewed the meaning of the proposed budget cuts on the IDF.
Following his review, Defense Minister Ehud Barak asked
Labor ministers to vote to postpone the decision on defense funds, pending the 2008 budget discussions.
"The appearance of the budget increase given to the Defense Ministry is misleading…I'm convinced that the defense budget must remain as it is," said Barak.
As a result of Ashkenazi's review and Barak's motion, a separate discussion regarding the proposed cuts in defense funds was scheduled for a later date.
'Cutting into flesh'
MK Michael Melchior (Labor-Meimad), chairman of the Knesset's Education, Culture and Sports Committee, called Olmert to refrain from "cutting into the flesh of education".
Cutting the Ministry of Education's budget, he said "makes no financial sense. Fixing the damages such cutbacks may create would cost tenfold."
The prime minister's motion was carried as followed: Kadima, Yisrael Beiteinu and the Pensioners party's ministers voted in favor of the motion, Labor voted against it, and Justice Minister Daniel Friedmann along with two Shas ministers abstained.
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