Budget bill passes first reading

Biennial budget bill for 2011-2012 passes first legislative hurdle; motion carried 62 to 34

Roni Sofer|Published: 10.26.10 , 07:59

The 2011-2012 biennial budget bill passed its first Knesset reading overnight, with a majority vote of 62 to 34. The NIS 558 billion (approx. $154.33 billion) budget will now undergo a review by the Knesset's Finance Committee, before facing its second and third votes.

The House also voted on the 2011-2010 arrangements bill – the budget bill's traditional companion. It too passed with a majority vote of 61 to 34.

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The session was clouded by the recent controversy of yeshiva students' funding. Finance Minister Yuval Steinitz told his fellow MKs that he "failed to understand what all the ruckus was about," adding that seeing how the "bill is similar to other bills passed over the passed 30 years; this uproar is a storm in a teacup."

Steinitz added that the while the decision to exempt haredim from military service was "a historic blunder," the Opposition's reaction was "irresponsible and unserious."

Passing the second biennial state budget is a coup for both Steinitz and Prime Minister Benjamin Netanyahu, despite the fact that it still has a long way to go until it can be hailed as a complete success.

Labor was spilt on the budget: Seven Labor ministers voted in favor of the bill, while six other were absent from the vote.

The Arab parties voted against the bill, while coalition members Likud, Yisrael Beiteinu, Shas, National Union the United Torah Judaism, voted according to party discipline.

Shas announced it would not back the bill in its second and third readings unless the government included "serious intervention in matters regarding affordable housing for young couples, religious and secular alike."

Zvi Lavi contributed to this report