The Israeli government approved on Wednesday a groundbreaking five-year economic development plan for the Arab sector, aimed at tackling the major gaps between Jews and Arabs in the Israeli society.

The plan, proposed by Social Equality Minister Gila Gamliel and supported by Prime Minister Benjamin Netanyahu and Finance Minister Moshe Kahlon, includes allocation of funds in various fields to the Arab sector for the years 2016-2020, at the cost of 3.9 billion US dollars.

This is the largest government plan ever passed in order to advance the economic development of Arab Israelis, Palestinians who stayed in Israel after the 1948 War and became citizens of Israel, constituting 20 percent of the population.

The plan's approval was delayed for several weeks, after some ministers from Netanyahu's Likud party objected to it. However, the plan was approved unanimously on Wednesday.

The funds in the plan will come in addition to the already existing funds passed to the Arab Sector through the current budget, where the sector does not receive funding in accordance with its share of the population.

The funds are aimed at developing the infrastructure, transportation, housing, industry, education, healthcare and welfare in the Arab society.

"It is anticipated that implementation of the plan will significantly contribute to the economic development of minority populations by increasing employment rates, improving scholastic achievements, increasing a sense of personal security and the accessibility to public transportation and strengthening local authorities," the plan purports, according to a statement sent from the Prime Minister's Office.

Minister Gila Gamliel, who advanced the plan, lauded its approval and called it a historic step.

"This is an important and historic step in our efforts to reduce gaps and promote social equality in Israel," Gamliel said in a statement after the plan was approved.

"For the first time in its history, the Israeli government is changing its allocation mechanisms so that Arab citizens will receive their relative share in the state budget," she added.

Arab lawmakers and locality chiefs lauded the plan, but said they remain skeptic about its implementation in the current atmosphere in the country.

"After this approval, the plan now has to be implement," Mazen Ghanaim, mayor of a northern Arab town named Sakhnin, told the Ha'aretz daily, who also serves as the head of the Higher Arab Monitoring Committee, which monitors the gaps between Jews and Arabs, that have persisted in various fields for decades.

"If it is implemented, it will be a step in the right direction, but anyone who thinks this will lead to equality is wrong. It's still a long road," he said.