Israel Passes Record $169 Billion Budget Amid Gaza War and Political Tensions
Knesset approval secures Netanyahu’s coalition and funds ongoing military operations, with the defense budget reaching unprecedented levels.
Watan-The Israeli Knesset approved the state budget on Tuesday, in a move that strengthens Prime Minister Benjamin Netanyahu’s ruling coalition, amid concerns it might collapse before National Security Minister Itamar Ben-Gvir’s return and the continuation of the campaign of extermination in Gaza.
Failure to pass the budget by the end of the month would have automatically led to the government’s collapse and triggered early elections, according to Israel’s Basic Law.
Passing the budget may now grant Netanyahu several months of political stability at a time when he is under heavy public pressure over the war in Gaza and other controversial government decisions.
Record Budget Passed as War Strains Israeli Economy
The budget vote was described as a major test for Netanyahu’s ruling coalition, which includes nationalist and ultra-religious parties.
The Knesset said in a statement on its website that the 2025 budget bill passed its second and third readings with a majority of 66 votes in favor versus 52 opposed.
This year’s budget is described as the largest in the history of the State of Israel. According to the Israeli Public Broadcasting Corporation, it amounts to 619 billion shekels (approximately $169 billion USD).
Defense Spending Soars Amid Gaza War and Economic Strain
The broadcaster reported that the defense budget is the highest, reaching 109.8 billion shekels (around $30 billion), followed by the Education Ministry with about 92 billion shekels ($25 billion), and the Health Ministry with around 60 billion shekels (over $16 billion).
The costs of the war, particularly in Gaza, have further burdened the Israeli economy.
Finance Minister Bezalel Smotrich commented:“The state budget we passed today is a responsible and sound budget that addresses all needs on the frontlines and the home front—until victory.”
He added in remarks before the Knesset:“At the heart of this budget is robust support for reservists and their families, as well as investment in accelerated construction and renewed development in combat zones in the north (on the Lebanese border) and the south (settlements near northern Gaza).”
Smotrich continued:“Israel is facing the longest and most expensive war we’ve ever known. We are supporting all war efforts and putting reservists at the top of our priorities with a package worth 9 billion shekels (around $2.5 billion), while managing Israel’s economy responsibly.”
