The Israeli Knesset approved by a slight majority the budget for 2025 in a first-reading vote despite the objection of one of Prime Minister Benjamin Netanyahu’s partners in the ruling coalition, demanding that he dismiss the Attorney General.
The vote, by 59 votes to 57, to approve the austerity budget related to the wars in Gaza and Lebanon in its first of three readings highlighted the divisions within the coalition, which relies heavily on the ultra-Orthodox Jewish parties belonging to the far right.
Opposition to Ben Gvir
The Israeli Minister of National Security, Itamar Ben Gvir, and the right-wing Nationalist Party, headed by Otzma Yehudit (Jewish Power), which holds 6 seats in Parliament, voted against the budget, sparking verbal skirmishes with Finance Minister Bezalel Smotrich, head of the right-wing Religious Zionism Party.
Ben Gvir has been pushing for the dismissal of Attorney General Galli Beharav Meara on the grounds that she opposes plans to reform the Israeli judicial system and supports an independent investigation into Israel’s handling of the Al-Aqsa flood events of October 7, 2023, led by the Palestinian Islamic Resistance Movement (Hamas), and asked to discuss the matter. In Cabinet meetings.
Ben Gvir said, on the X platform, that his party will not be bound by the coalition’s positions, including the budget law, and will work independently.
In an interview directed at Smotrich, he said that the government must dismiss the Attorney General so that it can implement its policy, and wrote that the right-wing government must “send her back to her home” before it topples the government.
In a letter to Netanyahu a month ago, Baharav Meara asked the prime minister to consider dismissing Ben Gvir, citing evidence that he directly interfered in police work as well as politicizing promotions within it.
In posts on the X Ben Gvir platform, Smotrich was accused of irresponsibly allying with the opposition and Arab parties and endangering the right-wing government in times of war.
Smotrich said that Ben Gvir and his party are endangering a historic opportunity to increase settlements in the West Bank.
In September, Netanyahu sought to strengthen the ruling coalition, which had a majority of 64 seats compared to 56 in the Knesset, by involving opposition MP Gideon Sa’ar from the New Hope Party to obtain 4 seats, which reduced his dependence on other members of the coalition, and appointed Sa’ar. Minister of Foreign Affairs last month.
Spending
Total spending in the 2025 budget amounts to about 756 billion shekels ($210 billion), with the deficit target set at 4.4% of GDP.
The budget includes spending cuts and tax increases amounting to 37 billion shekels ($10.29 billion), which are necessary to control the deficit in light of the high costs of war.
Defense spending will reach 108 billion shekels ($30 billion) next year.
The three credit rating agencies lowered Israel’s credit rating this year due to war spending that pushed the budget deficit to nearly 8% of GDP.
The budget will then be transferred to the Finance Committee and other committees in the Knesset, and it may be subject to change.
It is not expected to be fully approved until at least January, and until it is approved in 2025, the 2024 budget will be divided into 12 parts, each part of which will be allocated monthly.
Failure to approve the budget by March 31 will require new elections.
