Bar-On: Government must not exceed budget
Finance minister briefs cabinet on world markets' financial crisis, possible effects on Israeli economy. 'While there is no cause for concern at this time, we mustn't increase budget,' he says
The financial crisis rocking world markets and its possible effect on the Israeli economy were some of the key topics of Sunday's cabinet meeting, as Prime Minister Ehud Olmert briefed his ministers on the various consultations he has held on the matter over the past few days.
"I've met with Finance Minister Ronnie Bar-On and Governor (of the Bank of Israel) Stanley Fischer and we have discussed the recent developments. Any measures taken were decided using the appropriate discretion," he told the cabinet.
Bar-On reviewed the world financial crisis for his fellow ministers at Olmert's request, and concluded by saying that "while there is no cause for concern at this time, we mustn't exceed our set budget."
Bar-On was hinting at the coalition talks in which Labor has demand to increase the government budget by 2.5%, and Shas called for a NIS 1 billion ($290 million) increase in child benefits, which – if approved – would exceed the budget.
Sunday's Cabinet meeting (Photo: Gil Yohanan)
Olmert also briefed the ministers on his upcoming trip to Moscow, in an attempt to stop Russia from providing what he called "unstable element in the Middle East" with weapons.
"I'll be leaving for an official visit to Russia on Monday, at President Medvedev's invitation… We will be discussing various issues which we are concerned about, such as the supply of Russian arms to unstable elements and the Iranian problem, which Russia has to weigh in on.
"One must remember that Russia is a super power, both financially and military-wise. (Russian President Dmitry) Medvedev and I plan to discuss a variety of political, military and financial matters," he said. This would be Olmert and Medvedev's first meeting since the latter took office in May.
