Cabinet Budget Battle

Netanyahu's cabinet worked late into the night to agree on a new budget which will now go to the Knesset. Yedioth Ahronoth reports:

There hasn't been such a battle over the state budget for a long time. Even the ministers were exhausted: yesterday morning, after a long night of discussions, less than 24 ministers were left in the cabinet meeting room. The others had gone to sleep leaving their vote behind.
Prime Minister Binyamin Netanyahu could be pleased yesterday and smile after the budget that his ministry-and not the Finance Ministry-put together, was passed. But the price was high: raising taxes, contrary to his election promise, damages to his credibility and the resignation of Finance Ministry Budget Director Ram Belinkov left a bad smell in the hallway. Yet, for the first time, the cabinet passed a two year budget for 2009 and 2010 by a large majority. 26 ministers voted in favor and only four-from Shas-voted against. Next stop: the Knesset. It's not certain it will be easier there.
Only a few hours earlier, at 3:30 AM, the meeting blew up and the ministers went to sleep. Netanyahu wanted an overwhelming majority at any price: his people held constant negotiations with ministers from Yisrael Beiteinu who threatened to vote against. At 6:30 the discussions resumed and at 11:00, 21 hours after the dramatic discussion began, the budget passed.
Afterwards, and even though he'd had only three hours sleep, Netanyahu decided to face the press and reject the criticism. By his side sat Finance Minister Steinitz, Histadrut Chairman Ofer Eini and Chairman of the Manufacturers Association of Israel Shraga Brosh. To his left sat Defense Minister Ehud Barak. After handing out praise for responsibility and leadership, came the explanation stage. "It's an ongoing ritual that repeats itself every year, and nonetheless, we take heat," he said about the accusations that he zigzagged when he capitulated to criticism of the plan presented by the Finance Ministry last week.
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But his budget does not only break battle records, but also economic records: the ministries will all be cut by the same 6.5%, the increase in government expenditure will come to 3.05% instead of 1.7%, the budget deficit will grow by 6%, the budget will be the largest of all times-NIS 316.5 billion for 2009 and NIS 321.5 billion for 2010. Next year there will be a huge budget deficit: 5.5%. However, Governor of the Bank of Israel Prof. Stanley Fischer said yesterday that at times of economic crisis, such a deficit is possible.