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Israeli Parliament Passes State Budget

Israel's Knesset (parliament) on Tuesday night approved the 2005 state budget, paving the way for implementing Prime Minister Ariel Sharon's Gaza withdrawal plan.

The budget was approved with 58 voted in favor, 36 opposed and one abstained, in a second reading by the 120-member parliament, which has 25 members absent during the voting.

Israeli parliament passed the state budget two days before the deadline which is March 31.

If the budget would not have been passed by the end of the month, the government would be forced to resign and new elections would be held.

Earlier on Tuesday night, the Knesset firstly passed the Economic Arrangements Bill (EAB) in a third reading, paving the way for the later vote on the state budget.

The long-delayed budget and its accompanying EAB bill total an approximate 266.6 billion Shekles (about US$62 billion).The passing of the budget clears the way for Prime Minister Ariel Sharon to carry out the disengagement plan.

Israeli cabinet approved the Gaza pullout bill on Feb. 20, which is due to take place by the end of July.

The pullout plan, also known as the disengagement plan put forward by Sharon at the end of 2003, is aimed at removing all Gaza settlements and four of about 120 in the West Bank.

Israeli Knesset failed to pass the budget in a first reading last December.

The voting on the budget bill, overdue by three months, started only after Sharon secured a majority for the spending package and saved his government by handing out an unprecedented 1.6 billion Shekels (US$360 million) to Knesset factions.

(Xinhua News Agency March 30, 2005)

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