(Israeli Finance Minister) Netanyahu: Finance social services but don't breach budget

Globes ^ | 3 August 2004 | Zeev Klein

[anotherview]

Netanyahu: Finance social services but don't breach budget

Minister of Finance Benjamin Netanyahu: Don't bring Labor into the government as it will break up Likud. Revenue surplus will be used to cut taxes.
Zeev Klein 3 Aug 04 12:13

Minister of Finance Benjamin Netanyahu continues to oppose the Labor Party joining the government. He is prepared to allocate money for social services, provided that the ministers agree to make greater cuts in their respective ministries' budgets.

Netanyahu said if ministers want more money for social services, they must find the necessary financing without breaching the budget framework.

Minister of Industry Trade and Labor Ehud Olmert, who lambasted the Ministry of Finance's budget proposal on Sunday, said in response that solutions for the distress of the poor could be found within the budget framework. He added that budget surpluses were not being exploited, and spending could be increased without increasing the deficit.

This morning, Netanyahu said there was no need to rush to bring the Labor Party into the government, because this would cause the Likud to break up. "We have a coalition that can preserve both the Likud and its political and economic principles. We need more time, but some developments are promoting this possibility."

Netanyahu hinted that he was prepared to amend the budget at ministers' requests, provided that the ministers propose financing sources and are willing to cut their budgets. "Every minister who wants to make a different proposal is welcome to do so, but he must do so within the budget framework. Otherwise, we'll collapse and the poor will be the first to pay the price."

Netanyahu said the size of the 2005 budget was set, and he would not breach it, because that would cause a crash and make it difficult to obtain credit in the markets. He said, "The government is obese, and it must go on a careful diet." He said the revenue surpluses would be used to cut taxes.

Published by Globes [online] - www.globes.co.il - on August 3, 2004

[Spok]

You mean the Israeli's don't want to go broke trying to create some fool's notion of Utopia? Imagine that!

[maestro]

'Yukos'.......is everywhere.

:-(

[anotherview]

Nope, since Likud won the election in 1996 there has been a steady move towards an American-style open market economy and a dissolution of the old socialist system. The Likud landslide win in the last election and the decision that Silvan Shalom, who was ineffective as Finance Minister, and then Foreign Minister Netanyahu should swap jobs has given Israel solidly conservative and effective economic leadership.