Israel’s budget is approved, but a vote reveals divisions within Netanyahu’s party

In an early vote, Israeli parliamentarians narrowly passed the nation’s 2025 state budget, despite a revolt by one of Prime Minister Benjamin Netanyahu’s coalition partners who demanded that he dismiss Israel’s attorney general.

In its first of three readings, the Knesset, or parliament, passed the wartime austerity budget by a vote of 59-57, highlighting the differences within the coalition that mostly depends on far-right and ultra-Orthodox parties.

The ultranationalist Otzma Yehudit party, which has six seats, and Israeli Security Minister Itamar Ben-Gvir voted against the budget, which led to a verbal spat with Finance Minister Bezalel Smotrich, who leads another right-wing party.

Due to her opposition to plans to restructure Israel’s judicial system and her support for an independent investigation into Israel’s response to the October 7, 2023, cross-border incursion spearheaded by the Palestinian Islamic group Hamas, Ben-Gvir has been advocating for the dismissal of Attorney General Gali Baharav-Miara. At cabinet sessions, he has requested that the matter be brought up.

“My faction will no longer be bound by the coalition’s positions, including the budget law,” Ben-Gvir stated on X, adding that it will function autonomously.

The government needs to fire the attorney general in order to carry out its policy, he said Smotrich. Ben-Gvir claimed that the conservative government had to send her home or risk her overthrowing it.

Baharav-Miara wrote to Netanyahu a month ago, requesting that the prime minister take Ben-Gvir’s allegations of direct interference in police operations and politicized advancements within the force to jeopardize its political standing.

In the event that the matter is brought up in Sunday’s cabinet session, “the crisis will be behind us,” Ben-Gvir continued.

Smotrich charged in posts on X that Ben-Gvir had recklessly sided with the opposition and Arab parties, endangering their right-wing government during a conflict.

Smotrich claimed that with Donald Trump’s administration taking office next month, Ben-Gvir and his party were endangering a historic chance for expanded Israeli settlement of the occupied West Bank and for the State of Israel itself.

“We will continue to work for the people of Israel and for victory in the war, with or without Ben-Gvir,” he stated.

Gideon Saar, an opposition politician, and his four seats in the New Hope party were brought in by Netanyahu in September in an attempt to strengthen his coalition, which held a 64-56 majority in the Knesset, and make him less dependent on other members of his ruling coalition. Last month, Saar was appointed foreign minister.

A deficit objective of 4.4% of GDP is set for 2025, with a total budget outlay of 756 billion shekels ($210 billion). In order to control the deficit due to the skyrocketing expenses of war, the budget calls for 37 billion shekels in tax increases and spending cuts. 108 billion shekels will be spent on defense the next year.

Due to war costs that have caused the budget deficit to approach 8% of GDP, Israel’s credit rating has been lowered by all three agencies this year.

After then, the budget is sent to the Knesset’s finance and other committees, where it may be modified. At least until January, it is anticipated that it will not be fully approved. One-twelfth of the 2024 budget will be allotted each month until a budget is approved in 2025.

If the budget is not approved by March 31st, new elections will be held.

(3.6019 shekels) = $1