Talks are taking place between the Ministry of Finance and Deputy Minister of Health Yakov Litzman in an effort to solve the coalition crisis concerning approval of the budget. After the cabinet discussion of the budget aggregates scheduled for today was postponed because of the dispute between the Ministry of Finance and United Torah Judaism on the cut in the coalition agreements, Ministry of Finance representatives met today with members of United Torah Judaism in order to obtain agreements that will make approval of the 2015-2016 state budget possible. A compromise proposal for spreading the budget allocations over two years was put on the table, but United Torah Judaism rejected it.
The Ministry of Finance believes that United Torah Judaism will eventually compromise, and is threatening that is no agreement is reached, the country will be plunged into elections. "Litzman himself does not want elections," Ministry of Finance sources said. "He won't get a single shekel after the elections," they added.
Sources in the haredi (ultra-Orthodox) parties admitted that they had no interest in elections, but continued to insist that the coalition agreements be respected. "We won't accept any change in the agreement. There is no reason why we should be suckers. We won't agree to become a laughing stock to our voters," they said. United Torah Judaism's demands total NIS 4 billion, including a retroactive increase in child allowances and the restoration of the budget for yeshivas canceled by the previous government.
In addition to the cuts in the coalition agreements, the Ministry of Finance is also planning to institute a 3% across-the-board cut in ministerial budgets, but some ministries may be exempted from this formula.
Prime Minister Benjamin Netanyahu convened the representatives of the coalition parties in order to attempt to reach a compromise requiring all the party leaders to accept a cut in the budgets promised them in the framework of the coalition agreements. Minister of Finance Moshe Kahlon also took part in the discussion. During the cabinet meeting, Netanyahu hinted that the parties would have to contribute their share to paying for the budget, saying, "We have severe problem with the budget. I expect the parties to help."
United Torah Judaism sharply attacked the Ministry of Finance for its plan to force cuts in the coalition agreements. Knesset Finance Committee chairman Moshe Gafni asserted that the Ministry of Finance was a party to signing the agreements. "The Ministry of Finance is misleading people and presenting incorrect figures. Every item approved in the coalition agreements was coordinated with the Ministry of Finance budget division. We have no new demand; it was all signed in their presence. I believe that the Minister of Finance will realize that agreements must be kept. The problem is mainly on the part of the officials. In the end, the prime minister and Minister of Finance realize that agreements cannot be broken. There will be no drastic step in the end. It will end with an across-the-board cut, or in the postponement of projects and financial obligations," Gafni told "Globes."
For its part, despite the Minister of Finance's plan to cut back the money allotted in the coalition agreements, Kulanu, his party, is insisting that the items signed with it be honored, including a pay hike for soldiers, higher senior citizens allowances, and unemployment compensation for the self-employed. "We want a social budget, not a sectorial one," the Ministry of Finance said.
Shas means to fight for the elimination of VAT on basic goods. According to party leaders, "The coalition agreements were signed only two months ago with Netanyahu, and with the consent of Kahlon. Nothing has occurred in the economy requiring the reopening of the agreements, and the statements coming from the Ministry of Finance are therefore hard to understand."
Published by Globes [online], Israel business news - www.globes-online.com - on July 12, 2015
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