The 2005 budget was approved just a few months ago at the
last moment. The budget was supposed to be approved by the
end of 2004 but the shaky state of the coalition during those
months made approving the budget difficult and holding early
elections was an imminent threat until the budget was finally
passed by a hair.
Although the 2006 budget has already been presented,
according to predictions it too will be difficult to pass.
Winning government approval is merely the first step.
Afterwards it must go through a long procedure of legislative
approval in the Knesset, including a preliminary reading and
three regular readings. The votes on the budget involve long
and complex discussions to address the hundreds of paragraphs
and subparagraphs and amendments to the Economic Arrangements
Law.
The repercussions of the Disengagement Plan leave a big
question mark hanging over the chances of getting the 2006
budget passed on time. And it is also within the realm of
possibility that new elections will be held before the end of
2005 or at the beginning of 2006.
For now, political figures from the Right and the Left have
already expressed their opposition to the proposed budget.
The most outspoken opponent, who has been consistent in his
opposition to Netanyahu's economic program, is Histadrut
Chairman Amir Peretz. Peretz has accused Netanyahu of
"elections economics" doomed to fail. "Netanyahu is
sprinkling salt on the wounds instead of healing them,"
charges Peretz, saying it is unconscionable for the weaker
classes to pay the price of the decrees while the stronger
segments of the population enjoy the fruits.
The Histadrut Chairman is demanding an immediate minimum-wage
increase to $1,000, restrictions on job-placement companies,
a target for reducing the unemployment rate and an expansion
of the health care basket. Peretz predicts the budget will
not pass.
