The transfer would have been the first phase of a proposal by the Ministry of Social Affairs, aimed at transferring thousands of shekels to anyone who declares his or herself as a Holocaust survivor in need of aid.
The Finance Ministry, Monday, said that the proposal was unreasonable and impossible to implement.
Social Affairs Minister Isaac Herzog accused the Finance Minsitry of withholding funds from Holocaust survivors. "Up until now, our plan has not be accepted by the Finance Ministry, which just keeps telling us 'no'," he said.
He demanded the immediate intervention of Prime Minister Ehud Olmert.
In response, the Finance Ministry released a statement, that "at this time, the ministry is attempting to build a welfare plan for Holocaust survivors within the national budget.
"The recommendations of the Social Affairs Ministry were not approved by the government and no final decision has been made. The proposal by the Social Affairs Ministry is impossible to implement. In order to define them as Holocaust survivors, it would be necessary to use tests that are not applicable."