Prime Minister Ehud Olmert today, held a briefing with Finance Minister Ronnie Bar-On and senior Finance Ministry officials prior to this Sunday's scheduled Cabinet budget discussion.

Prime Minister Olmert said: "It is not good if the decision on the Government's budget is delayed and dragged.  If the discussion starts only in October, the extent of flexibility on the issues will be more limited, and that would severely impede the ability to present a responsible balanced budget.  It is forbidden to enmesh the 2009 budget with coalition forming political negotiations.  We must take a dignified approach in the face of the complex economic reality that waits at our doorstep.

The Prime Minister directed the Finance Ministry to continue discussions with the various Ministries in order to arrive at practical understandings regarding their approach and allocation of resources within the framework of the determined budget.

Prime Minister Olmert added that no discussions were held with Defense Minister Ehud Barak regarding expenditure limits and no accord was reached with the Defense Minister that might deviate from the position of Finance Minister Bar-On.