Israeli soldiers are seen with their weapons as the Israeli army continues its ground operation against Hamas in the Gaza Strip. Photo: Reuters file
On Friday, Israel's Cabinet approved the 2025 national budget, a financial package designed for wartime conditions. Far-right Finance Minister Bezalel Smotrich emphasized that this budget supports the ongoing conflicts and promotes economic growth. Israel has been engaged in a war with Hamas in Gaza for over a year and has been fighting Hezbollah in Lebanon since September.
"The primary goal of the 2025 budget is to ensure the security of the state and achieve victory on all fronts, while maintaining the strength of the Israeli economy," Smotrich stated. The budget, amounting to approximately 607.4 billion shekels ($162 billion), includes a nine-billion-shekel package to support reserve soldiers. It will now proceed to the Knesset, where Prime Minister Benjamin Netanyahu's coalition holds a majority, likely ensuring its approval.
Netanyahu welcomed the cabinet's approval of the budget, praising Smotrich for assembling "an important, challenging, but necessary budget in a year of war." Additional funds will be allocated to the defense ministry to support the military's efforts against Hamas, Hezbollah, Iran, and the groups it supports.
"This budget will aid and support the needs of the war, leading to a victory that will enable the robust Israeli economy to grow and thrive for many years," Smotrich added. The budget anticipates a fiscal deficit of about 4.3 percent. However, former Prime Minister and key opposition leader Yair Lapid criticized the budget, claiming it would "increase the expenditure of every family in Israel by 20,000 shekels (more than $5,300) per year."
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