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In a crucial victory for Prime Minister Benjamin Netanyahu’s government, the Israeli Knesset passed the 2025 state budget on Tuesday, ensuring the coalition’s stability and avoiding early elections.
Despite fierce opposition, lawmakers approved the NIS 755 billion ($205 billion) spending bill with a 66-52 vote, securing funding for key sectors while triggering heated debate over fiscal priorities.
A Budget for Defense and Growth
Finance Minister Bezalel Smotrich hailed the budget as essential for both national security and economic resilience. “We promoted measures that will support growth and allow the Israeli economy to maintain its strength and continue to prosper. This is a war budget and, God willing, it will also be the victory budget,” Smotrich declared.
The budget marks a significant increase in spending, with allocations reaching NIS 756 billion ($203.5 billion) overall, reflecting a 21% rise from 2024. A major portion of the budget is directed toward defense, with the Defense Ministry receiving NIS 110 billion ($29 billion) out of a total defense allocation of NIS 136 billion ($36.9 billion). This comes as the government commits to heightened military funding following the $31 billion spent on conflicts in Gaza and Lebanon in 2024.
Beyond defense, substantial funds have been allocated to the Education Ministry (NIS 92 billion/$25 billion) and the Health Ministry (NIS 59 billion/$16 billion). Additionally, the budget includes grants for IDF reservists, subsidies for war-impacted businesses, and funding for family support programs.
Criticism Over Cuts and Controversial Allocations
While coalition members celebrated the budget’s passage, opposition lawmakers lambasted what they described as misguided priorities. Opposition leader Yair Lapid condemned the bill, calling it “the greatest robbery in the history of the country.”
Critics took issue with NIS 3 billion ($814 million) in cuts across various ministries, impacting public sector salaries, including teachers and social workers. However, ultra-Orthodox educational institutions and other ministries deemed non-essential by treasury officials remained unaffected. This selective allocation has fueled accusations of favoritism and sparked further dissent.
Protests and Clashes as Budget Passes
The budget’s approval was accompanied by intense public protests. Anti-government demonstrators blocked roads leading to the Knesset, forcing security personnel to escort lawmakers through the crowds. Some protesters parked their cars in the middle of the road, prompting police intervention and multiple arrests.
Otzma Yehudit MK Almog Cohen and Heritage Minister Amichai Eliyahu reported facing hostility from demonstrators, with Cohen claiming he was “attacked with brutal violence.” Meanwhile, Knesset Speaker Amir Ohana denounced the protests, urging law enforcement to take stricter measures against those disrupting the democratic process.
With the budget now in place, Netanyahu’s government has secured a crucial victory, but ongoing political tensions suggest that further battles over fiscal policy and governance are inevitable.
