Israel Approves Billions for Defense Amid Cuts to Social Services

With elections just nine days away, the Israeli government is set to approve another sweeping cut to civilian ministry budgets to fund urgent defense procurement. The government is expected to greenlight a NIS 2.6 billion budget reduction across various ministries on Sunday, primarily to finance immediate defense needs. This decision has sparked strong opposition from ministry officials who warn of damage to essential public programs and services. This marks the second budget cut in a matter of days, following last week's approval of NIS 1 billion for the Ministry of Defense to purchase 12 Apache helicopters, funded by reducing the multi-year budget allocated for the development of the Arab sector.

Notably, coalition funds were again spared from the cuts, despite recommendations from senior Treasury officials to use them for defense needs. The planned cuts will be applied broadly, amounting to approximately 5% of the development and procurement budgets for government ministries. This translates to a reduction of about 4% in flexible budgets, excluding those designated for salaries and fixed commitments, thereby limiting the scope for new programs and the expansion of existing services.

The Ministry of Education is slated to absorb the largest cut among civilian ministries, totaling NIS 285 million. As about 90% of its NIS 97 billion budget is allocated to teacher salaries, the cut is unlikely to affect school hours. However, the ministry is considering reductions to budgets for youth movements, external educational programs, teacher training, NGO activities, and joint projects with local authorities. The Minister of Education, Yoav Kisch, will make the final decisions on these matters.

The Ministry of Health is warning of severe consequences from a NIS 150 million reduction. Director General Moshe Bar Siman Tov has appealed to the Director General of the Ministry of Finance, Israel Malachi, and the Budget Commissioner, Mehran Forouzanfar, to exempt the health system from these cuts. Concerns include reduced treatment availability, longer waiting times, and difficulties in expanding mental health services, as well as hindering efforts to bolster hospital protection and emergency preparedness.

The Ministry of Welfare and Social Services faces a NIS 140 million cut, with officials urgently seeking an exemption due to fears of impacting vulnerable populations. A senior official warned that the cut could significantly impair the ministry's ability to serve those most in need, especially given existing challenges exacerbated by the war. This new reduction adds to approximately NIS 450 million in cuts the ministry has already experienced this year, potentially halting the development of new services.

The Ministry of National Security is expected to see a NIS 225 million reduction, though a source clarified this would come from its emergency budget, not from operational funds for the police and other law enforcement agencies. This cut is not anticipated to affect operational activities or the mission capabilities of agencies under the ministry's purview. Senior Treasury officials explained that the broad nature of the cuts was a result of various ministries seeking to protect essential budget items.