Labor and Likud clashed in the Knesset Monday night over financial aid to kibbutzim. The latest dispute between the coalition partners could delay approval of the new budget.
The Labor Party Knesset faction threatened not to vote for the budget when it comes before the plenum Wednesday unless the Finance Committee approves a decision by the Treasury to spread the 264 million Shekel debt of the Labor affiliated United Kibbutz Movement (Takam) over a number of years. The movement represents 55 kibbutzim.
The heads of the Labor and Likud coalition factions were scheduled to meet Tuesday night with Finance Minister Moshe Nissim to try to head off a crisis. A vote against the budget would be tantamount to a non-confidence vote in the government. Likud says it is not opposed to helping the kibbutzim. But it will support easing the kibbutz debt burden only if similar treatment is accorded to development towns and Jewish settlements in the West Bank.
Likud also wants a written promise from Labor that it will not only support the budget but will vote for legislation needed to impose the new education tax and to reduce the top income tax rate from 60 percent to 48 percent. Both measures are important features of the new economic program approved by the Cabinet.
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