JERUSALEM, Nov. 13 (Xinhuanet) -- Israeli Prime Minister Ariel Sharon decided Sunday to postpone the vote on the 2006 State Budget until a plan for fighting the war on poverty is formulated,local newspaper Ha'aretz reported.

    Sharon made the decision together with coalition chairman Gideon Sa'ar.

    The decision came after Amir Peretz was elected as Labor Party's new chairman, who has threatened to bolt the coalition government led by Sharon, which is facing loss of a majority in the Knesset (parliament).

    According to the report, Sharon's Likud party is working on securing a Knesset majority for the 2006 state budget proposal without the Labor support.

    The Knesset will be asked to hold an initial vote on the budget and the Economic Arrangements Law at the end of November or early December, leaving the government just a month to approve the budget.

    Likud sources have warned that the country cannot be left without an approved budget until the establishment of a new government, which is likely to be in April-May 2006.

    They said failure to approve the budget could undermine the Knesset's stability and adversely affect the capital markets and the country's economy. Enditem