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Cabinet remains at odds over funding for Council of South

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Cabinet remains at odds over funding for Council of South

Lebanon”s Cabinet remained deeply divided on Thursday over the issue of fund allocations to the Council of the South, despite President Michel Sleiman”s attempts to find a compromise that would satisfy both Parliament Speaker Nabih Berri and Prime Minister Fouad Siniora.

Media reports on Thursday indicated that Berri insists on allocating LL60 billion ($40 million) to the council, while Siniora and Finance Minister Mohammed Shatah are offering only LL40 billion and want to pay this money after the parliamentary elections in June.

Shatah warned that any more allocations to the council would cause the budget deficit to reach more than 30 percent in 2009.

Siniora has hinted on several occasions that Berri would use money for the council to bolster his chances in the elections in June, an allegation vehemently denied by Amal.

Observers say that the 2009 draft budget is unlikely to pass if ministers fail to allocate LL60 billion to the council. But neither Berri nor Siniora seemed willing to drop their demands on Thursday.

"Berri will not accept anything less than LL60 billion. The speaker is in no mood for any compromise," a source close to Amal told The Daily Star.

On Tuesday, a delegation from the Council of the South presented a list of projects that would be implemented in the south if the Cabinet transferred LL60 billion to the council.

Observers fear that Berri and March 8 ministers will bloc the passing of the draft budget if Siniora refuses to meet the speaker”s demands.

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