Israeli cabinet approves 2009-2010 budget

JERUSALEM, May 13 (Xinhua) -- The Israeli cabinet Wednesday voted to pass
the 2009-2010 budget, local daily The Jerusalem Post reported.

Despite opposition from Shas party, a key coalition partner, Israeli
cabinet approved the budget, with 26 cabinet ministers voting for the bill while
the four Shas ministers against it, said the report.

Following the cabinet approval, the budget will now have to be approved by
Israel's Knesset (parliament).

The vote came hours after marathon late-night negotiations produced an
agreement for an across-the-board cut of 5 percent to all government ministry
budgets, and a raising of value-added-tax by 1 percent.

As part of the deal, the defense budget is expected to be cut by 1.5
billion shekels (about 365 million U.S. dollars). Israeli Defense Minister Ehud
Barak, as well as officials in his ministry, had opposed any such cuts.

Meanwhile, local daily Ha'aretz reported that value-added-tax will also be
applied to fruits and vegetables for the first time in Israel's history, which
is expected to add 1.8 billion shekels to the government coffers over the next
two years. (1 U.S. dollar equals 4.1 Israeli shekels)

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Arab leaders emphasize Gaza reconstruction, condemn Israeli assault

Special report:
Palestine-IsraelConflicts

Emir of Kuwait Sheikh Sabah al-Ahmad
al-Jaber al-Sabah speaks at the closing session of the Arab Economic,
Social and Development Summit in Kuwait City, Kuwait, Jan. 20, 2009. The
First Arab Economic Summit concluded here Tuesday afternoon, with leaders
announcing resolutions on ending the Gaza crisis and steps to promote Arab
economic and social development. (Xinhua/KUNA)
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KUWAIT CITY, Jan. 20 (Xinhua) -- Arab leaders concluded their first economic summit here Tuesday with an
adoption of resolutions highlighting the importance of reconstruction efforts
in the war-battered Gaza Strip and condemning anew the Israeli aggression on the
Palestinian territory.

The Arab leaders agreed to rebuild Gaza through a rehabilitation and construction program in coordination with the Palestinian National Authority (PNA), said the resolutions announced by Arab League Secretary General Amr Moussa at the end of the two-day summit meeting.

According to the resolutions, the Arab leaders called for continuing humanitarian assistance to Gazans suffering from three weeks of massive Israeli offensive, providing financial and technical support for the rehabilitation of infrastructure, health services, and improving Palestinians' living standards in the strip.

The leaders attending the summit were expected to map out practical steps to stabilize the ceasefire in the Gaza Strip and devote aid to the reconstruction of the besieged coastal enclave.

But the final resolutions stopped short of mentioning a highly-expected Arab fund worth 2 billion U.S. dollars for the post-war reconstruction process of the Palestinian enclave.

Meanwhile, Moussa said Arab foreign ministers held a closed-door meeting and studied the dangerous situation resulted from the Israeli aggression on Gaza, which has killed more than 1,300 Palestinians.

The top diplomats condemned the Israeli atrocious assault, demanded an immediate halt of the military operations and swift withdrawal of the Israeli forces from Gaza, he added.

The two-day summit had been designed to be a chance for Arab leaders to sidestep political divisions and focus on economic matters.

Due to the Israeli military offensive on the besieged Palestinian enclave that began on Dec. 27, the Gaza situation had dominated the economic meeting, attended by 17 Arab heads of state and the United Nations Secretary General Ban Ki-moon.

Emir of Kuwait Sheikh Sabah al-Ahmad
al-Jaber al-Sabah (L, front) attends the closing session of the Arab
Economic, Social and Development Summit in Kuwait City, Kuwait, Jan. 20,
2009. The first Arab economic summit concluded on Jan. 20, 2009.
(Xinhua/KUNA)
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