Tensions are rising between treasury officials and senior members of the Prime Minister’s Office over budgetary disagreements.

Olmert is coming under growing criticism regarding his fiscal policies, with treasury officials pointing a finger of blame at the prime minister for failing to work in tandem with treasury staff and a failure to understand the need to adhere to the budgetary framework.

Aides to Olmert deny the allegations, calmly stating the government is not making any surprise moves and is functioning in line with its economic policies.

Avraham (Beiga) Shochat, a former Labor Party finance minister told Galei Tzahal (Army Radio) on Monday morning that if Olmert does indeed exceed the budgetary framework it could have a devastating impact on the national economy. The veteran finance minister stated that at the end of the day, fiscal priorities are decided upon by the Knesset Finance Committee, the lawmakers who vote the budget into law, and the professionals in the Finance Ministry. He added that once the budget is approved, it is law and a prime minister cannot do as he pleases. “From my perspective, it can be a catastrophe,” he concluded.

Joining in is opposition leader Binyamin Netanyahu, a former finance minister, who called on Olmert to make some drastic changes in his finance policies, including an increase monthly retirement payment to the elderly, stating the funds for such a move are readily available.

(Yechiel Spira – YWN Israel)