Prime Minister Benjamin Netanyahu's government on Tuesday prepared to pass a new budget – a step that could bring some stability to his Coalition following a rocky start.

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While the passage of the budget could buy Netanyahu some quiet inside the Coalition, it also was expected to deepen the divisions in Israel. Critics have accused Netanyahu of increasing spending on his ultra-Orthodox allies for religious programs.

Ahead of the late-night vote, Netanyahu rejected the criticism.

"We are passing a reasonable budget, a budget that stays in bounds," he said. "To our colleagues in the Opposition: don't get your hopes up. This government will last its full four years."

The vote, approved on Wednesday with a majority of 64 votes, approved a budget through 2024, giving Netanyahu up to two years of quiet after weeks of tense negotiations with his Coalition partners.

"It's a very important moment," said Yohanan Plesner, a former lawmaker who is now president of the Israel Democracy Institute, a Jerusalem think tank. "It gives Netanyahu a reasonable projection for stability for the upcoming months, and perhaps year and a half."

Netanyahu formed the Coalition last year after the country's fifth election in under four years. That election, like its predecessors, was largely a referendum on Netanyahu's fitness to rule while facing corruption charges. The government took office in late December and almost immediately found itself mired in controversy, both at home and with its allies abroad.

A plan to reform the country's judicial system has triggered months of mass protests and raised concerns overseas. Proponents say the measures are needed to rein in an overzealous Supreme Court, but critics say the plan would destroy the country's system of checks and balances.

Meanwhile, the Coalition's commitment to expanding settlements in Judea and Samaria and east Jerusalem have angered allies.

The new budget has been criticized for allocating nearly $4 billion in discretionary funds, much of it for ultra-Orthodox and pro-settler parties. That will include increases in controversial stipends for ultra-Orthodox men to study full time in religious seminaries instead of working or serving in the military, which is compulsory for most secular males. It also includes more money for ultra-Orthodox schools, which are widely criticized for not teaching students skills like math and English needed in the modern workplace.

The funds also include tens of millions of dollars for pro-settler parties to promote pet projects through the ministries they control. Finance Minister Bezalel Smotrich, a settler leader, has said he hopes to double the population of Judea and Samaria settlers in the coming years.

The government's composition and agenda have deeply divided the country. On Tuesday, several thousand flag-waving Israelis protested outside the parliament building against the budget.

"The budget is not allocated for building bridges, or building schools, or supporting higher education," said Evyatar Erell, a protester. "It is devoted entirely for purposes that will serve nothing at all to promote the growth and development of Israel in the future."

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Scores of prominent economists this week signed a letter warning that the budget will cause "significant and long-term damage" to the economy by including incentives for the ultra-Orthodox to avoid the work force.

"The budget that the government is raising today is devastating," Opposition Leader Yair Lapid said on Twitter. "There is no reform that will improve the state of the economy, there are no engines of growth, there is no fight against the cost of living, there is only endless extortion."

While the budget vote buys Netanyahu some quiet, that may be short lived. The mass protests led prime minister to put the judicial overhaul plan on hold. But he could now face pressure from his partners to revive the plan.

If Netanyahu moves forward with the legislation, he could once again see his poll numbers slip and come under pressure from within his ruling Likud Party to cancel it. But if he calls off the plan, the hardline partners who have spearheaded the plan could threaten to leave the Coalition.

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Experts warned this week that allocating two billion shekels to the state school system, which teaches all subjects required by the Education Ministry, and the same amount to ultra-Orthodox schools that receive exemptions from the state in terms of curriculum, will lead to the collapse of the state school system.

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They said that the new budget model would set a precedent where other private Israeli schools too will demand full budgets, resulting in an exodus of students from the state school system in favor of private institutions.

Haredi schools rarely teach English, math, and science, or teach them in a limited way, which is why for years, the state has tried to increase the study of these subjects in the sector in the hopes that – down the line – it will help its members integrate into the workforce.

During Coalition negotiations, however, ultra-Orthodox parties secured 1.2 billion shekels that will go to increasing the wages of teachers in the sector, but without an employer-employee relationship between them and the Education Ministry.

The move has already led to protests against the measure. Over the weekend, educators, academics, and teachers sent a letter to Education Minister Yoav Kisch, calling on him to "prevent the disaster that will befall" the state school system.

"Entire generations of children will be denied basic studies of mathematics, science, and languages, and will undermine the common moral base of values," the letter said. "We must fight with determination and persistence to place the state school system at the top of the national priority list. We ask that you make your voice heard clearly and loudly, and call on all factions and sectors to integrate into the state school system."

There was no immediate response from the education minister's office.

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Israel's ruling coalition breathed a sigh of relief early Friday as the Knesset passed the national 2022 budget by a vote of 59 to 56.

The marathon overnight voting on budget bills was a major hurdle for the new government headed by Prime Minister Naftali Bennett, whose fractious coalition holds a narrow majority.

According to the Knesset website, four MKs from the opposition were absent from the vote: Moshe Arbel from Shas, May Golan from the Likud, and Samy Abu Shahadeh and Ahmed Tibi from the Joint Arab List.

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The NIS 432.5 billion shekels ($133.8 billion) spending plan for 2021, which passed early Thursday, was the first budget Israel passed since 2018, shoring up the government's stability after years of political crises that saw the Knesset fail to pass a national budget for more than three years.

The coalition gave final approval to the NIS 452.5 billion shekels ($145.2 billion) state budget for 2022, far ahead of its March 2022 deadline, as the legislation passed its third reading shortly after 3 a.m. on Friday.

Failure to pass the budget by Nov. 14 would have brought down the government that was sworn into office in June and triggered a fifth election in barely three years, giving former Prime Minister Benjamin Netanyahu an opportunity to return to power.

Bennett celebrated on Twitter, writing that "after years of chaos – we formed a government, we overcame the Delta variant, and now, thank God, we passed a budget for Israel."

"After three years of stagnation, Israel is getting back to work," Bennett said in a statement.

The Knesset began voting on a series of budget bills, including hundreds of amendments, late on Wednesday. The assembly opened with Bennett and Netanyahu delivering speeches attacking one another.

Netanyahu's allies repeatedly heckled and interrupted Bennett. Unruly scenes continued. At one point, a lawmaker from Netanyahu's Likud party was escorted out after calling Knesset Speaker Mickey Levy a "floor rag" and an ultra-Orthodox lawmaker was removed after meowing like a cat.

As the opposition sought to drag the vote out into the early hours of the morning, coalition whip Idit Silman distributed candy to keep lawmakers alert.

The Knesset approved a bundle of new laws, including a congestion tax for the Tel Aviv metropolitan area, eased import regulations and approved a higher retirement age for women. It also backed reforms on kosher certifications that have outraged ultra-Orthodox lawmakers.

The approval of the budget helped catalyze a 1.5% gain in the Tel Aviv 35 Index, which was also boosted by a rise in the global stock market.

Israel's economy is recovering after one of the world's fastest vaccine drives, with unemployment falling steadily and consumer confidence jumping over the last few months. In July, the central bank forecast growth of 5.5% this year despite a recent surge in new Covid-19 infections.

"We took responsibility," said Foreign Minister and Alternate Prime Minister Yair Lapid. "We kept our promise. We passed the '21-'22 budget for the State of Israel and all of Israel's citizens."

Finance Minister Avigdor Lieberman called it a "social and responsible budget."

"We will continue sticking to the task, avoiding narrow considerations and bring good news to all the country's citizens," he said.

On the opposite side of the aisle, MK Yisrael Katz (Likud), the former finance minister under Netanyahu, blasted the "terrible budget of cutbacks and taxes" in an Army Radio interview.

Katz, a prominent member of Netanyahu's party, said Thursday that "I am convinced that when Netanyahu resigns on his own accord... I will be elected head of the Likud party," but said he was focusing on ousting Bennett from office, not Netanyahu.

The ruling coalition headed by Bennett includes eight parties from across the political spectrum and has a razor-thin margin of 61 seats in the 120-member assembly.

MK Eitan Ginzburg (Blue and White), told Army Radio that by passing the 2021 budget, "we avoided fifth elections, stabilized the political system and the economy as well."

Defense Minister Benny Gantz, whose short-lived rotation government with Netanyahu dissolved last year over its failure to pass a budget, claimed vindication after the budget votes.

"I feel that the passage of the budget is a victory for the country, but also a personal victory for me," Gantz tweeted. "Those who acted out of personal interests and caused great damage to the country and its citizens are in the opposition, and those who look out for Israeli citizens are in the coalition."

Justice Minister Gideon Sa'ar said, "The opposition conspiracy to drag Israel to fifth elections has failed. We've moved away from the abyss and put Israel back on a path of stability and working for the citizens."

Environmental Protection Minister Tamar Zandberg said the coalition could now get on with "normal life," while drawing attention to the internal divides that could cause its unraveling.

"The whole issue of relations with the Palestinians and settlements is at the heart of the divisions in the coalition," Zandberg, a member of the left-wing Meretz party, told Kan public radio. "We expect that we won't be surprised and there won't be building that endangers the two-state solution."

On the opposition side, the budget's passage was denounced by United Torah Judaism MK Uri Maklev. Ultra-Orthodox lawmakers have said some of the tax hikes in the budget will affect their communities the most.

"This budget is the buying of power at an unparalleled cost," he said, arguing that the budget "imposes economic cuts on the public and harms the country's Jewish identity."

"This government's destiny is to collapse. It has no right to exist," Maklev added.

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However, senior government officials pointed to the new post-budgetary political situation as an opportunity to bring back the issue of cooperation with the Haredi parties to the table.

Speaking to Israel Hayom, the senior officials referred to several options that are being considered. For example, they said chances of both Shas and Torah Judaism were low, but perhaps one of them joining was possible. They also noted that the best and most realistic option was cooperation with the Haredi parties, even without official accession.

A government source told Israel Hayom: "The Haredi public has needs. Yeshivas, institutions, dormitories and everything related to life itself. [Bennett] cannot neglect them for three and a half years because they are bound to Benjamin Netanyahu. The Haredim themselves are better off finding cooperation and caring for their public."

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Right-wing Knesset members expressed outrage Tuesday after the government allocated 12 million shekels ($3.8 million) to tackle Israel's stray cat problem.

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"There is not enough funds for soldiers, for families in need, but there is one for cats," a bewildered Noam MK Avi Maoz said. "Shame on the government, Israelis deserve better, they deserve a different government."

The new funding was announced at the request of Yesh Atid. On top of that, the party managed to secure funding totaling NIS 41 million ($13 million) to fund early childhood programs, youth athletic projects, and the government's Child Online Protection Bureau as well.

The funds were approved as part of the coalition agreements that made the current government possible and are subject to approval by the Knesset as part of the overall state budget.

Altogether the Finance Committee has allocated NIS 736 million ($230 million) in coalition funds for education, anti-drug programs, culture, special needs, tourism, Torah-study and more.

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In a success for Prime Minister Naftali Bennett's coalition, the Knesset on Thursday gave preliminary approval to a 2021-2022 state budget, the country's first ratified spending package in more than three years.

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Lawmakers passed the 14-month budget bill in a first reading, voting 59-54 on the 2021 budget and 59-53 for 2022. Votes for final approval are due November 4.

After passing the budget framework bill, it then passed the accompanying Arrangements Law – which determines how funds will be implemented – and finally the 2021 and 2022 budget bills themselves.

All bills will now head to the Knesset Finance Committee and must pass their second and third readings in the plenum to become law.

The budget earmarked NIS 432.3 billion ($134.85 billion) in 2021 spending and NIS 452.5 billion ($141.15 billion) for 2022 – including funds to fight the coronavirus pandemic.

The budget deficit was projected at 6.8% of gross domestic product in 2021 and 3.9% in 2022, after hitting 11.6% in 2020.

Bennett and Finance Minister Avigdor Lieberman had come under pressure from ministers and lawmakers upset at some planned reforms, while others sought higher funding.

Two years of political stalemate and four elections had left Israel still using a pro-rated version of the 2019 state budget passed in March 2018.

A refusal by Netanyahu last year to agree to a two-year budget for 2020 and 2021 helped bring down his coalition.

"I've been in this chamber for many years, and I can't remember a period like this. The budget is a priorities list of the government, and this deliberation symbolizes more than anything the end of this crazy period and the return to normality. This is proof that this government functions and the coalition works," said Lieberman.

"In good time, there is a budget in Israel. After three years of stagnation, Israel returns to work," Bennett said after the cabinet vote.

"It is a budget which will strengthen the defense establishment and the health system, and which will care for the incomes of Israeli citizens. It is a budget that will care for citizens, not political interests. This is another step towards a better country – more united and more stable," he added.

Opposition leader Benjamin Netanyahu participated in the proceedings from behind a glass partition in a specially designed quarantine section in the plenum. Netanyahu recently returned from a vacation in Hawaii and, in accordance with coronavirus guidelines, is required to isolate for a week.

Speaking from the gallery, Netanyahu called the budget "terrible."

"It has cutbacks and raised taxes, in complete contradiction to your assurances," he said. "You have harmed the farmers, the weaker classes, the periphery, the middle class."

The Likud chairman has also lambasted the coalition for the billions promised to coalition member Ra'am – an Islamist party that supports Palestinian independence – and a deal recently announced by Defense Minister Benny Gantz to give the Palestinian Authority a NIS 500 million ($155 million) loan in an effort to salvage its struggling economy.

"You gave a fortune to [Ra'am chairman] Mansour Abbas and [Palestinian Authority President] Mahmoud Abbas because you depend on the NIS 53 billion you promised Ra'am," Netanyahu said.

The coalition also plans to raise municipal taxes, and has also reduced subsidies for public transportation, steps that Netanyahu said would harm the lower socioeconomic sectors.

The two-year state budget includes sweeping reforms of the kashrut establishment and the agriculture industry, steep taxes on disposable plasticware and sugary drinks, and considerable changes to import policies.

In 2022, the education budget will stand at NIS 69.7 (around $21.7 billion) and the health care budget will be NIS 44.8 billion (around $14 billion). The defense budget will be around NIS 73.3 billion (around $24.1 billion). Additionally, some NIS 36.1 billion (around $11.3 billion) were earmarked for development and transportation, the budget for the Labor, Social Affairs and Social Services Ministry and the Holocaust Survivors Rights Authority will be around NIS 14.9 billion (around $4.6 billion), and the budget for institutions of higher learning will stand at about NIS 12.3 billion (around $3.8 billion).

Likud MK and former Knesset Speaker Yariv Levin took particular exception to the reduction of public transportation subsidies.

"We worked systematically to cancel the differences between the periphery and the center of the country, and this started with public transportation," said Levin. "Now you come along and what is the first thing you do in the field of transportation? You impose a 'periphery tax' for those who work in the center and Tel Aviv."

Shas Chairman MK Arye Deri also condemned the budget.

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"This is a bad budget of a fat government that is disconnected from the people," declared Deri. "It is a budget without mercy that does intentional harm to the weakest families in Israeli society and the residents of the periphery. The Bennett-Lieberman government will be remembered as one that passed an anti-social budget."

Netanyahu, meanwhile, also addressed Bennett's recent visit to the White House, where he met with US President Joe Biden.

"The only thing that came from the meeting with President Biden is Bennett's promise that Israel will not publicly oppose a nuclear deal with Iran. A nuclear agreement with Iran threatens our very existence, which is why I worked against it everywhere and in every way possible. Had we not done so, whether on the diplomatic level and operational level, Iran would have already had a nuclear arsenal. You [the government], within eight weeks, handcuffed us diplomatically and operationally," he said.

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The Israeli government is raising taxes in order to give Ra'am leader MK Mansour Abbas 50 billion shekels, Opposition leader Benjamin Netanyahu said Monday afternoon after the cabinet approved the 2021-2022 state budget.

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Speaking at the Besheva Conference, Netanyahu said, "In the past few weeks I've managed to sleep well at night without being woken up by the red phone, but I'm worried today because the current government is heading down a path that is dangerous for Israel. It is projecting weakness and confusion. In six weeks, they have racked up failures on every main issue – the fight against COVID, the fight against Iran, in economics and in diplomacy. We are once again learning how easy it is to ruin what we built through years of hard work."

Netanyahu warned that Iran was making progress to nuclearization and said the new government "wasn't doing anything about it."

"Iran is an existential threat and faced with an existential threat, you fight back by any means possible. This government agreed to a policy of 'no surprises' [for the Biden administration], and thus have tied our hands. What, have we become a satellite state? If we don't have total independence to act against Iran, we have no independence at all. If it weren't for our actions, both operationally and in diplomacy and outreach, Iran would long since have amassed an arsenal of nuclear weapons [to use] against us," Netanyahu said.

Netanyahu also said that the Bennett-Lapid government was "failing" when it came to the economy.

"We handed them an economy that was in almost the best shape in the world, and what is the government doing, after promising not to raise taxes? It levies taxes on the citizens of Israel – raising the price of electricity at bread, taxing online purchases from outside Israel, raising the price of doctor's visits, raising the price of public transportation, and more," he said.

"They're doing this to fund the 50 billion shekels [$15.5 billion] they promised to Ra'am leader Mansour Abbas. Instead of raising taxes, the government should lower taxes and leave more money in the people's pockets," Netanyahu concluded.

Meanwhile, the Joint Arab List also had harsh criticism of Abbas and his fellow party members' positions on the budget.

After Abbas commented that the newly-passed budget accounted for "all the needs" of the Arab sector, chairman of the Joint Arab List MK Ahmad Tibi told Army Radio that "we are not happy with the budget. It's not the change we wanted for Arab society."

"When you're part of the coalition and forced time and time again to vote against your conscience, you get a few billion more from the coalition to keep swallowing those toads," Tibi said, referring to Abbas. "In practice, what happens is that a third of the budget for the 922 plan [for economic development in the Arab sector] passed, and unfortunately, all the obstacles to it that existed previously remain in place under this government," he added.

As of Monday, despite the Joint Arab List's criticism of the coalition and Ra'am, the list did not intend to vote against or abstain from the vote to pass the budget.

A senior official in the Joint Arab List told Israel Hayom that "As an opposition party, our job is to topple this bad government, but the alternative is to allow a government under Netanyahu to be formed in its place – and from our perspective, that is a worse option. We have understandings and agreements in principle with the coalition leaders and it looks like we'll support the budget they want to pass."

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Across the political system, it is widely assumed that the passing of a state budget is the principal test of government stability.

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Nevertheless, two senior Yamina party officials believe it will be more difficult to maintain coalition coherence once a budget is passed.

Following an Israel Hayom report Washington plans to hold off on discussing sensitive issues like the Palestinians until after a state budget is passed, a Yamina official said some of the demands the White House is expected to make could lead to the government's dissolution. He noted White House plans to reopen a de facto embassy to the Palestinians in Jerusalem, in what would offer de facto recognition of Jerusalem as the future capital of a Palestinian state, in particular, as a development that could spark sharp reactions from right-wing members of the coalition, leading to the government's demise.

Another senior official from Prime Minister Naftali Bennett's party spoke in a similar vein, noting the state budget was one of the main reasons the parties in the coalition, with their opposing worldviews, agreed to come together in the first place.

The Yamina official said that as soon as the budget was approved, disagreements would rise to the surface, making it harder to overcome internal tensions.

On Sunday, the government was set to approve the appointment of Yisrael Beytenu MK Eli Avidar to the role of minister without portfolio and Meretz MK Yair Golan to the deputy finance minister. Both Avidar and Golan were vocal critics of the previous government for its wastefulness.

Coalition sources explained Avidar's appointment to minister without portfolio as part of the political process leading up to passing the state budget.

"It's true that someone who uses pressure and threats should get slapped and not appointed, but unlike [Yamina AMK Amichai] Chikli, Eli Avidor is fine. As a rule, we prefer a loyal soldier from Yisrael Beytenu to someone who causes problems," the source said.

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Israel has so far spent 2.6 billion shekels ($787 million) to procurement coronavirus vaccines from various manufacturers so far, and has earmarked an additional NIS 2.5 billion ($757 million) for future such transactions, the Health and the Finance ministries revealed Tuesday at a Knesset Finance Committee meeting.

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The committee met to discuss the Health Ministry's coronavirus budget and appropriated about NIS 2 billion ($605 million) to aid its efforts in curbing the pandemic.

The ministry will be able to use the money to treat patients, fund its vaccination drive, hire and train more workers for its inoculation sites, as well as research and testing.

"I would like to praise Prime Minister [Benjamin Netanyahu] for the vaccination drive," committee Chairman Moshe Gafni (United Torah Judaism) said. "We are pleased that the vaccines are working and that we can begin to resume a normal routine."

Also on Tuesday, the Health Ministry reported that of the 86,152 Israelis screened for COVID-19 the day before, 2,003 tested positive, placing the infection rate at 2.4%.

Some 961 Israelis are hospitalized, 602 of whom are in serious condition, and 211 are on ventilators.

Israel has recorded 821,762 coronavirus casesm including 6,037 deaths since the onset of the pandemic in March 2020. To date, 788,685 Israelis have recovered from the virus.

As part of the national vaccination drive, 5,200,395 Israelis have received their first jabs, and 4,291,116 have been fully immunized.

Meanwhile, data published by the Health Ministry Monday revealed that the number of children under the age of 16 who contracted the coronavirus during the third wave of infections had doubled compared to the second resurgence of the virus, last fall. At the same time, the number of patients hospitalized with the virus did not increase.

Some 69,599 children were reported to have contracted the virus during the second wave in the summer of 2020, and 148,651 during the third one in December last year.

Both periods saw a high percentage of infected children from the ultra-Orthodox sector. In May, they made up 38% of the total children infected, in December they made up a third of all cases among minors.

Children made up 44% of the total number of Israelis infected in the second wave, and 52% in the third one. During the first wave of infections that occurred at the outbreak of the pandemic in Israel in March 2020, 2620 children got infected.

Some 75 children were hospitalized with COVID during the first wave, 548 during the second wave, and 653 during the third wave, making up less than 1% of the total number of Israelis hospitalized.

Children made up 0.87% of all Israelis hospitalized during the second wave, and 0.45% during the third one. Children from the Haredi sector made up 0.5% of those hospitalized during the second wave, and 0.31% during the third one. As for the Arab sector, children made up 1.24% of those hospitalized during the second wave, and 0.71% during the third one.

The vast majority of children who were hospitalized exhibited mild symptoms. During the second wave, 1.1% of all children hospitalized were in a critical condition and 5.8% in serious condition. During the third wave, 2.5% were in critical condition and 4.1% in serious condition.

"The data proves that which we have been claiming, that the British mutation causes an increase of infection among children," Professor Tzahi Grossman, chairman of the Israel Pediatric Association, said.

Nevertheless, he explained, the British variant is less dangerous for children, but does cause more serious illness among adults.

Prof. Hagai Levine, epidemiologist, public health physician from the Hebrew University and Hadassah Medical Center, explained that the government's closure of the education system turned out to be unjustified.

"Children got infected during the third lockdown even when the education system was closed, which shows that schools are not the main engine of infection."

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Starting Sunday, public hospitals will no longer accept patients brought in by ambulance unless their lives are in immediate danger, the hospitals announced Saturday.

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The hospitals reported a dire lack of resources that has resulted in equipment shortages and the inability to pay suppliers, as well as meet ongoing operating expenses.

Officials from hospitals Shaare Zedek Medical Center in Jerusalem, Laniado Hospital in Netanya, Mayanei HaYeshua Medical Center in Bnei Brak, and three hospitals in Nazareth met with Finance Ministry representatives on Thursday to negotiate budget raises, but the meeting yielded no results.

After ministry representatives refused to continue the negotiations, hospital officials called upon Prime Minister Netanyahu and Finance Minister Israel Katz to get involved in the matter as soon as possible and resolve the negotiations.

Health Ministry Director General Professor Hezi Levi condemned the hospitals' decision, saying that it did "not comply with Health Ministry procedures" and that patient care would continue as usual, alongside continued effort to regulate budget needs.

"I am aware of the budgetary difficulties you are experiencing," Levi said. "The Health Minister and I are dealing with the problem thoroughly [together] with the Finance Ministry. We will not accept a situation in which patients are used as means in a negotiation."

Hundreds of doctors, nurses, and other health care workers protested on Thursday outside the Finance Ministry and the prime minister's home in Jerusalem as a result of the situation in their hospitals.

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Political officials are saying that in the past few days, an avenue of dialogue has been established between Prime Minister Benjamin Netanyahu and Blue and White leader Benny Gantz, with the goal of preventing the dissolution of the Knesset and another election.

For now, this dialogue will allow Netanyahu another grace period at the end of which he could call an election before having to implement the rotation agreement and step down as prime minister.

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According to the officials, shortly after Gantz decided to establish a governmental committee of inquiry into the submarines affair, the defense minister and alternate prime minister notified Netanyahu that the latter had no reason to worry about the committee's findings.

In a message he sent to the Likud Party, Gantz stressed that his intent in establishing the committee of inquiry was to "placate his base," and said he had no doubt that the committee could not affect the prime minister or his stature. Gantz said he thought that Netanyahu would not be asked to testify before the committee, and stressed that the committee's mandate was a very limited, even "toothless," one.

Israel Hayom has learned that the team facilitating dialogue between the two camps includes Gantz's chief of staff Hod Batzar and Netanyahu associates Asher Hayon and Natan Eshel.

Officials also said that in the past few days, the two sides have been sending messages to each other about the state budget and other issues. The backdoor communication also reportedly included a demand by Netanyahu that Gantz remove Justice Minister Avi Nissankoren from his role and forgo the rotation, which is planned to take place in November 2021. Gantz rejected both demands outright.

However, the "dialogue team" is working on a compromise on the budget issue that would allow the Knesset to push the Dc. 23 deadline to pass the 2020 national budget back by three months. This could comprise a capitulation on Gantz's part, as it would allow Netanyahu another chance to pack it in and call an election, thus avoiding the rotation. Both sides are reportedly looking into ways of minimizing the damage and blunt expected criticism of Gantz if he decides to take that course of action.

Gantz is demanding a solid date for the passage of the 2021 budget as a condition for approving the 2020 budget, but Netanyahu has thus far rejected all proposals presented to him.

Meanwhile, Blue and White said Thursday that all reports about a compromise on the budget issue were "total, baseless lies" invented by "people with vested interests."

"No compromise on the budget has been cooked up," Blue and White said.

Responding to the reports about the committee of inquiry into the submarines affair, Blue and White said, "Another bunch of ridiculous babble and 'Arabian Nights' stories. This is a professional, independent committee headed by a judge that will thoroughly investigate the Defense Ministry's acquisition processes."

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