Israeli Budget Department Faces Internal Tensions Over Structural Changes Proposed by Maharan Prozner

Since assuming his role as Israel's Budget Department head, Maharan Prozner has sought to implement structural reforms within the department. His proposal to add two new deputy positions focused on artificial intelligence and strategy sparked resistance from the existing six deputies, who oversee macroeconomics, defense, infrastructure, social sectors, real estate, and economic ministries. The suggestion, introduced early in Prozner's tenure before gaining trust from veteran staff, was perceived as an attempt to alter the department's core culture, especially amid uncertainty whether the new deputies would be internal or external appointees.

In response to the pushback, Prozner withdrew the plan for two new deputies and instead proposed appointing three coordinators directly under his supervision in the fields of artificial intelligence, regional cooperation, and strategy. These coordinator roles, typically subordinate to deputies, would bypass that hierarchy, raising questions about their exact functions and authority. Supporters argue these roles address a lack of cross-cutting perspectives on critical issues like AI, while critics maintain the department's current organization by government ministry already facilitates broad collaboration.

The ambiguity surrounding the coordinators' responsibilities has caused confusion, particularly regarding their interaction with existing teams. For example, it is unclear whether the AI coordinator would replace or supplement current tech and energy teams, or how ministries would engage with them on workforce retraining initiatives. Historically, similar attempts to create strategic teams without direct ministry oversight have faltered, as seen with Dor Bloch's strategy team dissolved after 2020 due to lack of budget and ministerial authority.

Despite these challenges, Prozner remains confident the new coordinators will integrate successfully and assist in developing a multi-year economic plan. However, critics note that most policy areas already have government plans, and the Budget Department's role is primarily advisory and supportive rather than leading plan creation. The ongoing debate highlights tensions between centralized management and established collaborative structures within Israel's key economic policy body.