Israel: Government Budget Cuts Defense and Welfare

On Friday, the Israeli Government approved a new two-year budget. However, cuts both in defense and welfare brought criticisms from parts of the coalition. Following the NIS 2.7 billion (about $700 million) reduction in the defense budget, ministers from Israel Beiteinu stormed out of the meeting and Foreign Minister Avigdor Lieberman, the leader of the party, threatened to vote No in the Knesset. Minister of Welfare Isaac Herzog (Labor) also left the meeting before voting.

Speaking to Israel Radio, Public Security Minister Yitzhak Aharonovitch (Israel Beiteinu) said:

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If the government doesn't fund the office, Israeli society will be harmed. There is a need to strengthen the police and the prison service. The ministry can't be run [without additional funding.]

Israel Beiteinu is the senior partner [in the coalition], but we're treated otherwise. I say to the government and to the prime minister: we'll meet in the Knesset. We're voting against the budget - it will not pass!

Shas's leader, Interior Minister Eli Yisha,i announced that he will fight in the Knesset for the increase in welfare funds.

Defense Minister Ehud Barak (Labor) did not target the government but underlined the "challenges faced" by the Israel Defense Forces:

We made a difficult decision, taking into consideration the economic and social situation in Israel. There are consequences to this decision, and I showed them to the cabinet.

Barak added that he hopes the IDF can "stand before the challenges in the resources budgeted to us. The balance between the security budget and the other budgets can bring us to deal correctly with the security and social challenges in Israel."

The IDF released a statement, thanking both Prime Minister Benjamin Netanyahu and Finance Minister Yuval Steinitz (both from Likud).

Following the voting, Steinitz said:

The government approved a proffesional budget, which balances the different needs of the market. After years in which the security budget recieved significant additions, which strengthened the military, the government has chosen to give these additions to the education budget, health and welfare.

My mission is that the coming years will bring a shrinking of social gaps by strengthening the weaker sectors. The 2011-2012 budget will allow the government to plan for the long term and will strengthen the stability and security in the market.

And Prime Minister Netanyahu said:

The budget we compiled today is a responsible and balanced budget, that grants stability to the Israeli economy for the next two years.

The public in every country pays for going over the budget and unchecked spending. It may not be clear when a government goes over the budget, but we see what happened in some European countries. We can't let such irresponsibility happen in Israel.

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