Cabinet approves: Biennial budget for 2011-2012 as well

Source in PM's Office after vote: Decision shows that this is a real unity government, and proves Netanyahu's leadership

Roni Sofer |Published: 03.04.10 , 17:58

Cabinet on Thursday approved Finance Minister Yuval Steinitz's proposal to continue with the biennial state budget model in 2011-2012.

Sixteen ministers voted in favor of the proposal. There were no objections, but Minister Dan Meridor (Likud) and five Labor party ministers abstained.

The ministers also unanimously approved Steinitz's proposal to implement a calculation system that would increase the government's annual expense rate from 1.7% to 2.6%.

Prior to the cabinet vote Steinitz said his plan was also backed by the Bank of Israel. After the vote the finance minister said, "These steps mark a revolution in the government's economic policy and a central budget that will allow the government to present a long term plan and maintain market stability."

Prime Minister Benjamin Netanyahu said that the biennial budget approved by the government will enable continued development of roads, trains and education while assisting the struggle against violence and improving personal security.

A senior source in the Prime Minister's Office referred to the opposition's claims that the budget would not win majority support, saying, "Once more it turns out that Netanyahu knows where he's leading the state and does so with determination. This decision shows that this is a real unity government, and proves Netanyahu's leadership."

On the other hand, Meretz chairman Chaim Oron said the decision on the biennial budget renders parliamentary activity a "dead letter".

"This process makes the Knesset dispensable. There is no such thing as a biennial budget anywhere else in the world. It does not suit the dynamics of the Israeli economy and demands constant adjustments," he said.

Members of the Kadima Party also criticized the government for approving the biennial budget and accused Netanyahu of "selling Israel's economy for his own political survival".

"This is one of the most wrongful and anti-democratic moves ever seen here," the party said in a statement.