Finance Minister Smotrich Not Responsible for Half-Trillion Shekel Debt
Translated & summarized from Maariv by baba
MK Vladimir Beliak accused Finance Minister Bezalel Smotrich's policies of costing Israeli families 3,000 shekels monthly, totaling 425 billion shekels over five years. An analysis reveals Beliak's calculation conflates principal debt repayment with interest costs. While interest payments have increased, the article argues the bulk of the sum is principal repayment for past borrowing, including war expenses, and that the actual increase attributable to current policy is far less than claimed.
The story in 5 lines · by baba
- MK Vladimir Beliak claims Finance Minister Smotrich's policies cost families 3,000 shekels monthly.
- Beliak's calculation totals 425 billion shekels over five years, citing increased debt payments.
- The article distinguishes between principal debt repayment and interest costs.
- Principal repayments are for past borrowing, including war expenses, not wasted funds.
- The actual increase in annual interest payments is estimated at 22.5 billion shekels, not 78 billion.
MK Vladimir Beliak has claimed that Finance Minister Bezalel Smotrich's policies will cost every working family approximately 3,000 shekels per month, totaling 425 billion shekels over five years. Beliak's calculation suggests Israel will pay about 220 billion shekels this year for its debts, an increase of 78 billion shekels compared to 2022, with the difference projected to grow to 85-90 billion shekels annually in subsequent years. He argued this money is being wasted instead of being allocated to education, health, infrastructure, or VAT reduction.
However, the article distinguishes between principal repayments and interest payments, arguing that Beliak's figures are misleading. While the budget for debt repayment in 2026 is indeed around 236 billion shekels, this sum includes both the principal (money borrowed and owed) and interest (the cost of borrowing). The principal repayment alone for 2026 is estimated at 171.4 billion shekels. This borrowed money was used to fund expenditures, including war costs, and is not considered 'wasted.' Furthermore, principal repayments include loans and bonds issued years prior that are now due, a common practice of debt refinancing.
Regarding interest payments, the article acknowledges that this is a cost, but not necessarily 'wasted' money, as it's the price of borrowing. Government interest expenses have risen from 42.1 billion shekels in 2022 to an estimated 64.6 billion shekels in 2026. The increase in interest payments between 2022 and 2026 is approximately 22.5 billion shekels annually, a figure significantly lower than Beliak's 78 billion shekel estimate. While alternative policies might have led to slightly lower borrowing amounts or better credit ratings, the article concludes that attributing nearly half a trillion shekels in debt to Smotrich's personal actions is an exaggeration, even while acknowledging potential government mismanagement and waste in other areas.
