Israel's security cabinet approved a budget of $550 million to $670 million today to compensate thousands of Jewish settlers set to be removed from occupied Gaza and parts of the West Bank.
Each settler family would receive a government payout of $200,000 to $500,000.
"That's a very reasonable sum for what a family of four would get," Finance Minister Benjamin Netanyahu told reporters.
"I just hope these numbers are not inflated in the legislative process," he said referring to the upcoming debates in parliament.
Prime Minister Ariel Sharon intends to uproot more than 8,000 settlers by the end of 2005 under his plan for "disengagement" from conflict with the Palestinians. The settlers would be relocated in Israel.
A senior Israeli official told reporters the security cabinet set a broad funding target because the package would span two fiscal years and the final amount spent would depend on how many settlers relocated early and voluntarily.
"Anyone who doesn't evacuate before the deadline does not automatically forfeit compensation, unless they are actively resisting. If they (do), they face prosecution as squatters and could forfeit up to $15,000 in peripheral perks," he said.
Those settlers leaving voluntarily would net perks such as tax waivers and rent subsidies and would get advance payments amounting to a third of their total compensation to help with moving costs.
The official said there was pressure by diehard nationalist settlers on more moderate settlers not to come forward and file claims for compensation to leave early. The funding package is to be submitted to parliament by November 3rd.
The total cost to evacuate settlers from Gaza is estimated at more than $1 billion.
Mr Netanyahu said although Israel hoped the United States would provide some financial help for pulling out of Gaza, the government was preparing to shoulder the burden itself.