Israeli Interior Ministry Warns Bnei Brak Over Massive Municipal Budget Deficit

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.