Israeli cabinet approves 2006 budget

Israeli cabinet on Sunday approved unanimously a draft 2006 state budget at its first meeting, Israel 's daily Yedioth Ahronoth reported.

The bill, which totals 284.2 billion shekels (63.2 billion U.S. dollars), was approved at the first cabinet meeting since its sworn in on May 4.

The draft will be submitted to the Knesset (parliament) Finance Committee on Monday before it becomes law after its second and third readings in the Knesset, the best-selling newspaper said.

Over the next 45 days, amendments will be introduced to the budget based on coalition agreements made between Prime Minister Ehud Olmert's Kadima party and Labor, Shas and the Pensioners party.

Sunday's approval is termed by Finance Ministry officials as a technical act because cabinet ministers did not review its details.

Major changes to the budget plan, which was drawn during the term of Ariel Sharon's government in August 2005, reflected the coalition agreements signed by Olmert with the coalition partners, including those connected to pensioners, child allowances and education, said the report.

Earlier on Sunday, incoming Finance Minister Abraham Hirchson pledged to invest significant resources to tackle the widening gaps in Israeli society, which was a hot campaign issue in the March elections.

Speaking at the changeover ceremony with Olmert, Hirchson said he would "invest thought, time and resources to narrowing social gaps and stabilizing greater homogeny in society."

If a final budget fails to be passed within 45 days of the new government's installation, the Knesset will automatically be dissolved and new elections called.

Source: Xinhua