Knesset panel rejects budget

Finance Committee demands that treasury recalculate unrealistic 4% growth target
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The Finance Committee of the Knesset today rejected the budget proposal of the treasury after a special debate on the treasury's economic growth target.

The committee members said they doubt the treasury's 4% growth target for 2002, saying that most indicators show growth will fall short.

Consequently, the treasury's estimate for tax revenue will also fall short, the committee members said.

At the end of the debate, the members accepted a proposal from Shinui party member Yosef Paritzky to return the budget bill to the treasury for reworking.

The panel demands that the treasury come up with a more realistic forecast on which to base the budget for 2002.

Bank of Israel governor David Klein has also called on the treasury to change its growth forecast, from 4% to 2%.