Israeli Interior Ministry Warns Bnei Brak Over Massive Municipal Budget Deficit
Translated & summarized from Kikar HaShabbat by baba
The Israeli Ministry of Interior warned Bnei Brak's mayor about a massive budget deficit exceeding tens of millions of shekels, demanding urgent fiscal measures and a recovery plan by October 2026. The municipality faces a quarterly deficit of 49 million shekels and an 80 million shekel deficit in 2025. Bnei Brak officials said the letter was uncoordinated and affirmed plans to end the year balanced while continuing major infrastructure projects.
The story in 6 lines · by baba
- Israeli Interior Ministry warns Bnei Brak over tens of millions shekels budget deficit.
- Municipality faces 49 million shekels quarterly deficit and 80 million shekels deficit in 2025.
- Ministry demands immediate freeze on hiring, salary upgrades, and non-essential budgets.
- Bnei Brak must submit a deficit reduction plan by October 11, 2026.
- Tel Aviv district supervisor calls for urgent, binding fiscal decisions.
- Bnei Brak responds letter was uncoordinated and expects to finish year balanced.
The Israeli Ministry of Interior issued a stern warning letter to Bnei Brak Mayor Hanoch Zeibert, demanding urgent preparations for severe measures due to a cumulative budget deficit reaching tens of millions of shekels. The ministry emphasized that failure to achieve a budgetary balance soon would lead to painful interventions restricting the municipality's managerial flexibility. Immediate demands include a complete freeze on staffing levels, halting personal contracts and salary upgrades, and approving only essential extraordinary budgets. The municipality must submit a detailed plan addressing procurement, tenders, and human resources to reduce the deficit by the end of the year.
An audit by the district supervisor and the external auditor revealed that Bnei Brak faced a quarterly deficit of approximately 49 million shekels in the first quarter, following an 80 million shekel deficit in 2025. These alarming figures prompted the ministry's unequivocal call for swift budgetary intervention. Zvika Invinder, the Tel Aviv district supervisor, described the letter as "urgent" and demanded binding and difficult decisions to restore fiscal balance. The municipality is required to approve the full plan with the Tel Aviv district by October 11, 2026, with the ministry expecting a prompt response and coordination of a meeting.
In response, Bnei Brak's municipality stated that the letter was sent without coordination with city management. They asserted that the city expects to end the year with a balanced budget within the approved financial framework. The municipality highlighted ongoing large-scale infrastructure and sanitation projects worth hundreds of millions of shekels aimed at residents' welfare, under recently implemented budgetary controls. They are currently reviewing the letter's details and will respond substantively to the Ministry of Interior.
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