Israeli Knesset Legal Counsel Opposes Retroactive Budget Approval

The Knesset's legal advisor, Sagit Afik, and the legal counsel for the Finance Committee have determined that the Ministry of Finance must remove a clause from a budget request concerning defense spending. This clause involves a transfer of NIS 12.8 million that has already been spent months prior to receiving the committee's approval, violating the Basic Law: State Budget. This is not the first instance of the Finance Ministry seeking retroactive approval for funds already disbursed.

Previously, the committee approved a NIS 1.1 billion transfer to Haredi educational institutions in late December 2025, with approximately NIS 1 billion already transferred before approval. Another NIS 100 million was frozen by the High Court of Justice. The committee was also asked to approve funds for the Heritage Ministry after they had already been transferred.

The directive comes ahead of a Finance Committee meeting where the request, including internal changes to the defense budget, is scheduled for discussion. The committee is also expected to approve an additional NIS 14.8 billion for the defense system, with the opposition supporting this allocation. The NIS 12.8 million expenditure, which constitutes a budget overrun, was part of a request submitted in late July without disclosing the deviation. The Ministry of Finance initially sought to withdraw the request in early August, resubmitting it a week later with the overrun noted.

Of the five budget transfers to be discussed, the legal counsel found no objection to four. However, for the transfer involving the NIS 12.8 million overrun, the specific program where the unauthorized expenditure occurred must first be removed. Other significant transfers include NIS 11.758 billion for defense expenses related to the war, including reservist payments and procurement, and NIS 801.388 million for the Tax Authority, Compensation Fund, and General Accounting Office, intended for war damage compensation to businesses and operational needs.

MK Orit Farkash-Hacohen of the Finance Committee criticized the government's delay in bringing the defense budget supplement for approval, noting that funding sources include cuts to public services like public transportation, questioning why coalition funds are not being reduced instead to cover war needs.