Netanyahu, Katz, Smotrich Agree to Boost State Budget Post-Election
Translated & summarized from Globes by baba
Prime Minister Benjamin Netanyahu, Defense Minister Israel Katz, and Finance Minister Bezalel Smotrich agreed to unfreeze state budget allocations after the elections to approve billions for defense. The move aims to cover defense needs until mid-next year and could prevent recent budget cuts. The exact amount is still being finalized, but it follows a previous failed attempt to increase the defense budget before elections.
The story in 5 lines · by baba
- Prime Minister Netanyahu, Defense Minister Katz, and Finance Minister Smotrich agreed to boost the state budget post-election.
- Billions in additional funds are planned for the defense establishment to cover needs until mid-next year.
- The budget increase could prevent recent government-mandated budget cuts.
- The decision follows a previous attempt to increase the defense budget before elections that was blocked.
- The exact budget amount is still being determined by officials.
Prime Minister Benjamin Netanyahu, Defense Minister Israel Katz, and Finance Minister Bezalel Smotrich have agreed to unfreeze state budget allocations immediately after the upcoming elections. This move is intended to approve billions in additional funds for the defense establishment and bring the budget to its first reading in the Knesset through temporary committees to be formed after the new Knesset is sworn in.
A discussion held last week, chaired by Secretary of the Government Yossi Fuchs and attended by Director of Budgets Mehran Frouzanfar, Legal Advisor Nir Weingold, and other senior officials, concluded that the budget would cover the defense system's needs until mid-next year. The agreement stipulates efforts to minimize operational damage, ensure necessary supplies until that date, and secure production lines and any defense-related procurement needed during this period, even if delivery is scheduled for later.
The exact budget amount is still being determined. This is an unusual step, as Prime Minister Netanyahu previously attempted to increase the defense budget before elections but faced opposition from the Knesset, which requires consensus for such legislation during election periods. The decision to bring the matter to a vote immediately after the Knesset is sworn in is likely due to this.
Government assessments suggest that if approved, this budget increase could prevent the cuts recently decided upon by the government and potentially keep the deficit target (4.9%) from being breached, especially given positive tax revenue surprises. The current year's approved defense budget is NIS 143 billion, supplemented by NIS 15 billion in war reserve funds, a NIS 2.6 billion across-the-board cut, and a NIS 1 billion cut from the future five-year plan for the Arab society.