Finance Minister Silvan Shalom is due within hours to submit to the Knesset Finance Committee a proposal for an additional cut of some NIS 1 billion from the 2002 budget.

The additional cut is required for financing amendments in the Negev Law and the large families law, forced upon the government by the coalition members.

The proposed 2% cut is to apply to all ministries, except the Defense Ministry, which is to be cut by just 1%.

The move is expected to create NIS 900 million in additional revenue.