Israel lawmakers approve 2007 budget in initial vote

TEL AVIV, Nov 7 (Reuters) Israel's parliament gave initial approval today to a 2007 state budget revamped after a month-long war with Lebanese Hezbollah guerrillas.

Lawmakers voted 68 to 38 in favour of the 295.4 billion shekel budget, which includes a budget deficit target of 2.9 percent of gross domestic product, raised from the 2.0 percent targeted before the conflict broke out in mid-July.

The budget includes a spending boost of 3.5 billion shekels in one-time items for defence and to help rebuild areas of northern Israel that were hit by Hezbollah rockets.

Prime Minister Ehud Olmert's coalition holds 78 seats in the 120-member parliament.

Reuters AKJ GC2301