Israeli Finance Minister Promises Budget Cut Reversal Without Revealing Funding Source
Translated & summarized from Calcalist by baba
Israel's government approved a NIS 2.6 billion budget cut, but Finance Minister Bezalel Smotrich promised it would be reversed, citing an undisclosed funding source. Ministry officials initially protested the cut, calling it "impossible" and harmful to vulnerable populations. The promise of reversal has eased some concerns, though skepticism remains about the "secret source" of the funds. The exact nature of the funding and the timing of the reversal are unclear, with speculation pointing to post-election budget adjustments or potential military operations.
The story in 6 lines · by baba
- Finance Minister Bezalel Smotrich promised a NIS 2.6 billion budget cut would be reversed, citing an undisclosed source.
- Ministry officials initially warned the sweeping budget cut would have severe negative consequences.
- The Finance Ministry has used the "secret source" to criticize the Ministry of Defense.
- Some officials have called the cut a "fake cut" due to the promise of reversal.
- The exact nature of the funding source remains unknown and is being closely guarded.
- Speculation suggests the reversal may involve reopening the budget after the upcoming elections.
The Israeli government decided on a sweeping NIS 2.6 billion budget cut, which initially drew strong objections from ministry directors general. The Director General of the Ministry of Health, Moshe Bar Siman Tov, called the cut "impossible," and a senior official in the Ministry of Labor, Social Affairs and Social Services warned it would "severely harm the weakest populations." However, protests subsided after Finance Minister Bezalel Smotrich and his ministry's Director General, Yisrael Malachi, assured the directors general that the cut would be reversed, citing a "budgetary source" of NIS 2.6 billion. Smotrich stated in a government meeting that the source would be known in a month and that ministries could choose where to implement cuts if necessary, but he expected this not to happen. Malachi further bolstered confidence, suggesting the cut was merely technical. Some officials have dubbed the cut a "fake cut" based on Smotrich's promise. The Finance Ministry has also used the "secret source" to criticize the Ministry of Defense for not agreeing to wait a month for the funds to become available. The exact nature of this NIS 2.6 billion "source" remains unclear, with Smotrich and his associates guarding it closely, even from other ministers and directors general who received the assurance. Sources involved in the matter suggest the secrecy stems from the source being "very sensitive" and unavailable for cuts before elections, implying Smotrich plans a targeted cut after the vote to replace the current one, possibly to avoid electoral damage. Notably, the government did not reduce the NIS 700 million allocated for coalition funds, much of which is currently frozen due to legal constraints, such as funds for yeshiva students awaiting a conscription law. This unallocated money could have offset part of the budget cut. Ministries are currently operating as if the cut is in effect, as they cannot rely on the promise of future reversal, causing delays and disruptions. One theory suggests Smotrich might intend to reopen the 2026 budget after the elections, potentially triggered by a large-scale military operation, which could secure additional funds for the defense establishment and allow for the reversal of cuts to other ministries. Prime Minister Benjamin Netanyahu previously attempted, unsuccessfully, to reopen the 2026 budget for defense needs with opposition support. Smotrich's office has not yet responded to requests for comment.
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