New Budget Chief's Quiet Year Raises Questions on Fiscal Restraint

Mehran Forouzanfar, appointed as the Director General of the Budget Division in Israel's Ministry of Finance, has completed his first year in the role with a notably subdued presence, prompting questions about the effectiveness of the position. Forouzanfar, a former Brigadier General and head of the Budget Department in the Ministry of Defense, was chosen by Finance Minister Bezalel Smotrich for his deep understanding of the defense establishment's financial workings, especially following a significant increase in the defense budget due to the ongoing war. The expectation was that he would be uniquely positioned to control defense spending.

However, Forouzanfar's appointment was fraught with delays and controversy. It was initially rejected three times by the Civil Service Commissioner, partly due to a complex conflict of interest agreement and concerns over Smotrich's previous appointments of eight men to senior roles. His approval was ultimately linked to the simultaneous appointment of Michal Abadi-Boiangiu as Accountant General. This protracted process left the crucial Budget Division without a permanent head for five months, during the critical period of formulating the 2026 budget.

Unlike his predecessors, who were known for asserting their professional stance even against the Finance Minister, Forouzanfar has remained largely silent. This quietude has been evident in key fiscal battles, including the debate over the defense budget, which rose from NIS 112 billion to NIS 183 billion, and in negotiations over coalition funds and budget revisions. His lack of public pronouncements or visible influence has led to speculation that the role itself may have been weakened, or that his appointment, intended to curb defense spending, was flawed from the outset, especially given the minister's tendency to bypass professional echelons.

The true impact of Forouzanfar's tenure and the future of the Budget Division's influence will become clearer as Israel prepares its 2027 budget, determining whether the position has been hollowed out or if the choice of appointee was the primary issue.