Olmert
Photo: Reuters
Budget cuts expected to cause clashes between Kadima, Labor
Proposal by prime minister and finance minister to cut budget by NIS 1.2 billion meets opposition by Labor minister
A Sunday meeting is expected to cause clashes between Labor and Kadima, as Ehud Barak and his fellow party-members are expected to oppose a proposal by Prime Minister Ehud Olmert and new Finance Minister Ronnie Bar-On to reduce the national budget by NIS 1.2 billion (about $283 million).
Olmert claims that the sum will go towards educational reform (NIS 456 million/ about $108 million), fortifications in Gaza vicinity communities and repairs for bomb shelters in the north (NIS 400 million/ about $94 million), and general protective measures against atomic, biological or chemical weapons (NIS 344 million/ about $81 million).
As a result, government ministries are expected to suffer cutbacks of six percent, collectively.
Ministers of the Labor Party are scheduled to convene before the cabinet meeting to discuss the issue. In a Thursday Labor party meeting, many ministers expressed strident opposition to the budget cuts requested by Olmert.
They are expected to vote against the cuts as they oppose to the proposed reductions for defense, education and the non-Jewish sector, although Olmert and Bar-On claim that the reduction will not affect higher education, welfare, the healthcare package or local authorities.
Nonetheless, members of Labor believe that Olmert is trying to compensate for pricey government legislation that he has approved in order to preserve his coalition. As an example, ministers cited a Shas-initiated law approved last week, promising the transfer of more funds to religious schools.
"National accountability obligates us not to cut funds from government ministries at this time, certainly not in the context of last summer," said National Infrastructure Minister Binyamin Ben-Eliezer.
Olmert and Bar-On are expected to counter that it is exactly because of last summer's events that money must be transferred to fortifications in the north and near Gaza. Also, according to the two, the government's commitment to raise education on the list of national priorities requires that they compensate for this in other sectors.
The cutback issue is expected to be one of the most divisive for this coalition, although even its strongest opponents in Labor don't believe that related arguments will bring about dissolution of the government.
"At the end of the day, the two sides will need to find a middle ground in order to resolve their differences," a source from Labor said.
IDF sources also expressed disapproval of the intended budget cuts, saying they would hurt aspects of security. According to a senior officer, cutbacks would affect areas such as enlistment of reserves, training exercises and equipment.
"It is exactly in these areas that it was decided to invest more, based on lessons learned from last summer's war," he said.
