A compromise is emerging on the defense budget, which will total NIS 56-57 billion. In preparation for cabinet approval of the 2015-2016 budget tomorrow, the cabinet is formulating agreements between the Ministry of Finance and the various government ministries. It is believed that a large majority of the cabinet will eventually approve the budget. Although no final agreement has been signed yet, an agreement on a NIS 56-57 million defense budget is emerging. Under the agreement, the Locker Committee reforms will not be adopted at this time, and discussion of them will be postponed until after the budget is approved, and will probably take place only next year. Sources close to Minister of Defense Moshe Ya'alon said that only after he sees tomorrow how much the defense budget is will he decide how to vote on the state budget. Ministry of Finance sources predicted that Ya'alon would eventually vote against the budget in the cabinet vote.
The Ministry of Finance succeeded in countering the opposition of Minister of Transport Yisrael Katz and Minister of Welfare and Social Services Haim Katz by reaching a compromise with them. Yisrael Katz will support the budget after it was agreed with him that the across-the-board cut in the Ministry of Transport's budget would not apply to public transportation, while Haim Katz will support the budget after reaching an agreement with the Ministry of Finance about his initial demand for a NIS 3 billion welfare budget supplement.
At the same time, there are still major differences with Minister of Public Security Gilad Erdan, who was promised a budget supplement of NIS 300 million in 2015 and NIS 500 million for 2016 for more foot patrolmen as part of the agreement with him when he joined the government, in addition to the regular budget. Since the Ministry of the Interior budget proposed by the Ministry of Finance does not reflect these amounts, Erdan made it clear that he would have to vote against the budget, unless a change is made in the next 24 hours.
The Ministry of Strategic Affairs, also headed by Erdan, also failed to win funding for the struggle against de-legitimization and BDS. Before taking up his position, Erdan agreed with Netanya on a supplement of at least NIS 100 million for this ministry, and was also promised more jobs in the ministry. Erdan originally declined to serve as a government minister, agreeing to serve only after receiving an explicit promise from Netanyau for these amounts.
Published by Globes [online], Israel business news - www.globes-online.com - on August 4, 2015
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