The Knesset approved, yesterday, Thursday, expanding the previously approved additional budget for the 2024 fiscal year to reach 727.4 billion shekels (about 192 billion dollars) due to the ongoing Israeli war on Gaza.
The budget was voted in favor by a majority of 57 votes to 51, according to the Knesset spokesman.
The Knesset approved the new increase of 3.4 billion shekels ($924 million) to help finance the evacuation of civilians and the spending of reserve soldiers until the end of this year.
New budget details
- NIS 524.32 billion (about $138 billion) for routine government expenditures and public services.
- NIS 203.08 billion (about $53.5 billion) are allocated to the investment and development account, including long-term projects and infrastructure.
The original budget for 2024 was based on expectations that the intensity of the Israeli war on Gaza would subside by June 2024.
As the war dragged on longer than expected, the original budget was no longer sufficient to cover the increasing costs. Therefore, a need was identified for increased civilian spending to address the ongoing war.
As a result, the Israeli government has identified the need to increase civilian spending to address the ongoing effects of the war, with the second budget aimed at addressing the financial impact of the extended war.
The Jerusalem Post notes that the additional budget was also intended to ensure continued support for affected civilians and to adapt to the ongoing security situation.
Criticism
Opposition leader Yair Lapid harshly criticized the budget, saying, “Where will the money come from? The government is presenting this budget with good intentions, but it does not clarify 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, describing it as a failure, and said, “The only reason for the increase in the deficit is to keep the government at the expense of the Israelis.”
Recently, a report in the French newspaper Le Figaro stated that the budget discussion in Israel is 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 noteworthy that Israel has been waging a devastating war on Gaza since October 7, 2023, which has left more than 136,000 Palestinian martyrs and wounded, most of them children and women, and more than 10,000 missing.
