Yesterday, Thursday, the Knesset approved increasing the previously approved supplementary budget for the 2024 fiscal year to NIS 727.4 billion (about $192 billion), due to the continuation of Israel’s war on Gaza.
The budget was passed by a vote of 57 to 51, according to the Knesset spokesman.
The Knesset approved a further increase of NIS 3.4 billion ($924 million) to help finance the evacuation of civilians and disbursements to reserve soldiers through the end of this year.
Details of the new budget
- NIS 524.32 billion (about $138 billion) for current government spending and public services.
- NIS 203.08 billion (about $53.5 billion) is allocated to the investment and development account, including long-term projects and infrastructure.
The initial budget for 2024 was based on the expectation that the intensity of Israel’s war on Gaza would decrease by June 2024.
As the war lasted longer than expected, the initial budget became insufficient to cover the increasing costs. It therefore became necessary to increase civilian spending to deal with the repercussions of the ongoing war.
As a result, the Israeli government identified the need to increase civilian spending to address the continuing impacts of the war, with the second budget aimed at addressing the financial impact of a prolonged war.
The Jerusalem Post reports that the supplementary budget was also aimed at ensuring continued support for affected civilians and adapting to the current security situation.
Reviews
Opposition leader Yair Lapid sharply criticized the budget: “Where will the money come from? The government is presenting this budget with good intentions, but it does not explain the sources of funding.” He added that the working class and the reserve class will bear the new financial burden.
Benny Gantz (leader of the National Unity Party) also criticized the opening of the budget a second time, calling it a failure and saying: “The only reason the deficit is increasing is that the government remains at the expense of the Israelis.”
Recently, an article in the French newspaper Le Figaro stated that the budget discussion in Israel was turning into a “melodrama” due to the pressure of military spending on the Israeli economy, noting that after a two-month delay, Finance Minister Bezalel Smotrich presented the 2025 budget.
It is worth noting that Israel has been waging a devastating war on Gaza since October 7, 2023, leaving more than 136,000 Palestinians martyred and injured, most of them children and women, and more than 10,000 missing.