Israel 2002 State Budget Approved by Government, Lacks Parliament Majority

Published December 25th, 2001 - 02:00 GMT
Al Bawaba
Al Bawaba

The Israeli government is struggling to form a majority in the Knesset – the Israeli Parliament – for the 2002 State budget, passed by the cabinet on Monday, with at least 67 Parliament members opposed to the budget as of now, according to Haaretz reports.  

 

The 17-seat Shas party is leading the opposition to the budget, joined by members of the Labor Party, One-Nation and the Ultra-Orthodox United Torah Judaism Party, angered over Prime Minister Sharon’s decision to freeze the Large Families Law. The Labor Party said it would support the budget under the condition that legislation be maintained for promoting various benefits for the Negev – Israel’s South, a solution to the handicapped problems be found and that aid to student tuition fees be unharmed.  

 

An overwhelmingly large majority of 22-6 passed the NIS 6.15 billion in budget cuts on Monday. The votes against it came from all five Shas Party Ministers, who left the meeting and Minister without Portfolio, Shmuel Avital from the One Nation Party. Avital blamed Finance Minister Shalom for breaking his promise not to "touch" National Insurance Institute benefits. 

 

The cabinet approved the series of cuts in the 2002 State budget after Prime Minister Ariel Sharon resolved a crisis with the Labor Party by backing up Foreign Minister Shimon Peres’ talks with Speaker of the Palestinian Parliament, Abu Ala. The budget cuts approved include a freeze on all private legislation, including Finance Minister’s Shalom’s pet project, the Negev Law and child allowances reductions. 

 

After the cuts, the proposed budget has been reduced 2.4 percent to NIS 248.65 billion (nearly US$60 billion), according to the Jerusalem Post. Currently, the debate on the 2002 budget moves to the Knesset Finance Committee in order to meet the December 31 deadline. Despite government attempts, it seems as though 2002 will begin without the budget. If indeed this will be the case, an interim budget is legislated for three months. If the budget fails to win approval also by the extended March 31 deadline, the Parliament is dissolved and new elections are called. (Albawaba.com) 

Subscribe

Sign up to our newsletter for exclusive updates and enhanced content