The Knesset postponed voting on the national budget until Thursday to avoid a possible coalition crisis arising from a dispute between Labor and Likud over how to manage the 266 million Shekel debt of the Labor-affiliated United Kibbutz Movement (Takam).
The vote, scheduled for Wednesday’s session, was delayed to give the coalition partners more time to reach an understanding on the matter. Labor made it clear it would not vote for the Cabinet-approved budget unless Likud members of the Knesset’s Finance Committee agreed to spread the kibbutz debt over several years, at a reduced rate of interest. The Treasury has already approved the scheme.
But the Likud Knesset faction demanded that the concession be “enlarged” to include the debts of development towns and of Jewish settlements in the administered territories. There were reports Wednesday night that Labor and Likud leaders had reached an agreement that will ensure that the budget is approved.
A vote against the budget by the Labor Party would be tantamount to a vote of non-confidence in the government.
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