No progress has been reported Friday in the negotiations between the Labor Alignment and Likud over the proposed 33 billion Shekel ($23.8 billion) national budget.
Labor’s initial demand to allocate 266 million Shekels ($193 million) as a long-term loan to rescue the United Kibbutz Movement triggered demands from other sectors. Agudat Israel and Shas seek allocation of 30 million Shekels ($22 million) to yeshivas affiliated with each party and West Bank settlers are asking for an immediate allocation of 47.5 million Shekels ($35 million) and an unspecified sum later.
Treasury officials warned that if these demands are met, the budget framework, which has not yet been approved, will be torn apart.
Likud has claimed that additional outlays for yeshivas and settlements could come from budget reserves and thus not lead to excessive spending But Treasury officials claim that earmarking reserves, rather than keeping them for unexpected needs, would be equivalent to increasing the budget.
Last year’s budget was 33 billion Shekels ($20.9 billion).
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