What it is about
On Sunday, the Israeli cabinet approved a proposal spearheaded by Finance Minister Bezalel Smotrich to increase the 2024 state budget. This amendment will allocate close to NIS 3.4 billion ($924 million) to support evacuated civilians and reserve soldiers amid the ongoing prolonged conflict with Gaza and Lebanon’s Hezbollah.
Why it matters
This budget increase underscores Israel’s commitment to protecting and supporting its citizens and military personnel as they navigate the challenges posed by continuous security threats. Despite criticisms, the government’s decisive action aims at maintaining both civil order and defensive readiness during these unprecedented times.
Finance Minister’s Statement
Smotrich clarified his plan in a statement: “Contrary to reports, the increase in spending is being executed without raising the deficit target,” which was revised to 6.6% of GDP following the Hamas-triggered October 7 incursion and ensuing conflicts. This figure was an update from the earlier projected target of 2.25%.
Breakdown of Additional Funds
Smotrich’s financial plan will see approximately NIS 2.2 billion used to continue supporting around 80,000 Israelis evacuated from conflict areas along Gaza and Lebanon’s borders. An extra NIS 200 million will be dedicated to funding reserve military service, with NIS 193 million allocated for monthly evacuee grants for July and August. Another NIS 255 million is earmarked for specific war-affected citizen grants. Moreover, NIS 525 million from previous ministry-wide budget cuts will boost the state’s fiscal records, totaling NIS 3.4 billion in additional 2024 budgetary rollout.
Controversies and Backlash
The proposed budget increase sparked significant backlash within the Finance Ministry and from opposition politicians. MK Vladimir Beliak from Yesh Atid accused Smotrich of fiscal mismanagement, recommending alternative methods such as reallocating coalition funds or reducing unnecessary government offices to circumvent budgetary increases.
Looking Ahead
The Finance Ministry forecasts continued spending growth until the end of September due to escalated war expenses. A downturn in the deficit is projected from the fourth quarter onward, contingent on wartime developments, aligning with the 6.6% target by the end of 2024.
Conclusion
As Hamas’ campaign extends into its tenth month and generates fears of an extended conflict with Hezbollah, Israel is preparing to secure additional billions for its military and civilian budgets. This assurance of prolonged financial support emphasizes Israel’s steadfast resolve to prioritize the safety of its citizens and soldiers in challenging times.
This story was first published on timesofisrael.com.