Government cuts budget cuts
Cabinet goes back on original decision to laterally cut 6% of bureaus' budgets, settles on cutting half; making $89 million of its financial reserves available to make up difference
The government decided Sunday to make NIS 314 million (approx. $89.5 million) of its financial reserves available to its various bureaus, in order to allow them to meet their budgetary goals for 2008.
The decision was made after Labor ministers announced they would be voting against the proposed, 6% lateral cut – approximately NIS 750 million ($213.8 million) – in the government's budget. Shas minister followed suit and announced they would not support the motion either.
The new cut, said Labor Chairman Ehud Barak, "Is an important achievement. The fact that the cut were reduces by half and did not include major cuts in the defense and education ministries' budgets, are in accordance to Labor's policy.
"Safety and security," he added, "are not measured by tanks alone, but in securing the social welfare of every man, woman and child."
Prime Minister Ehud Olmert chose to open the discussion about the budget cuts by stating that "we cannot increase the budget and therefore we must be able to prioritize. We must stay within the budgetary limitations we have decided on… this is one of the reasons the Israeli economy has done so well."
Finance Minister Ronnie Bar-On called on his fellow ministers "to make the responsible decision. We have to recognize the government's pivotal needs and grant the cuts."
The Treasury's proposed cuts are aimed to enable the implementation of the Dorner Commission's recommendations of increasing the stipends given to Holocaust survivors.
