Government budget discussion underway

Video - Prime Minister Ehud Olmert will attempt to pass his last budget as the head of the Israeli government Sunday. Olmert's budget face a massive hurdle, as 16 of his ministers, including some from Kadima, Labor, Shas and the Pensioners Party are expected to vote against it. Video courtesy of Infolive.tv The government's budget debate is expected to be a lengthy one, with political sources estimating it may turn into an all night filibuster. The ominous assessments, however, did not deter neither Olmert nor Finance Minister Ronnie Bar-On, as sources in the Prime Minister's Office and the Treasury said the two were cautiously optimistic about the budget's chances. 'Economy not a pawn in political game' "We've heard a lot about various budgetary alternatives over the past week," said Olmert at the beginning of the meeting. "If we had unlimited resources at our disposal, we could have a lot of fun with the budget, but since that is not the case, we will not allow either for an increase in the budget or for one in the deficit." In a personal attack on Defense Minister Barak, who was absent from the meeting for a long time, Olmert said, "We are dealing with a budget which focuses on the security issue. It's a shame that the Labor chairman, who is also the defense minister, fails to allow himself to thoroughly study the budget because he has been outside since the start of the meeting." Adamant that the budget vote will take place on Sunday, the prime minister reminded his ministers of "the dramatic difference between the data you submitted (to the Treasury) and the actual figure. "I would like to remind all of you that 2009 may be difficult and that we have to exercise caution and responsibility. The Israeli economy may become unstable… I will not allow for our economy to crumble because of a political agenda or narrow interests. "The Israeli economy," concluded Olmert, "cannot be made into a pawn in a political game." Nevertheless, sources within Labor said that the party's objections to the budgets are withstanding: "We have seen no (budget) negotiations since Thursday and we intend to vote against it," said Agriculture Minister Shalom Simhon. Bar-On told government ministers during the meeting that they should "separate between economy and politics" in the discussions on the state budget. "This is a decisive day," he said. Addressing Histadrut Chairman Ofer Eini's threat to launch a general strike, the minister said, "There is no and was no plan to harm the labor relations in the economy and to violate existing collective agreements." Financial options In an unusual step, Bar-On presented his fellow ministers with two versions of the budget: The first – defense-inclined, meaning many of the "social" budget would have to suffer severe cuts in order to allow the Defense Ministry substantial funding and the second – socially-inclined, in which the Defense Ministry bears the brunt of the cuts in order to allow more funding for the government's social bureaus. Labor, on its part, claims both briefs are nothing but a ruse, demanding the government increase its budget by 2.5% per-annum. Shas demands the government forfeit the plan to cut children annuities by 10% – some NIS 500 million ($143.7 million), should the party support a defense-inclined budget. The Pensioners Party, demands the government allocate an additional NIS 700 million ($201.14 million) for pension benefits in 2009. The Prime Minister's Office and the Treasury, however, are expected to deny the claim. Should the government vote against the budget and subsequently fail to pass the 2009 Arrangements Act, the move may be postponed until a new government is formed. Should Olmert and Bar-On be successful in passing the budget bill, its brief would be given to the Knesset members to study, and the its vote would be scheduled for the start of the Knesset's winter session, said to begin after the High Holidays.

Government budget discussion underway

(VIDEO) Ministers convene for budget meeting, amid fierce objections by more than half of cabinet ministers. Session expected to be stormy one; Treasury, Prime Minister's Office cautiously optimistic