Israeli budget passes amid protests and coalition tension
The Israeli Parliament passed the budget for 2025 on Tuesday. Had it not done so by the end of March, new elections would have been triggered, potentially causing the ruling coalition to lose its majority. The opposition criticised the bill, accusing Prime Minister Benjamin Netanyahu of buying the support of his extreme coalition partners.
The budget resolution was passed with a majority of 66 votes in the 120-member parliament, while 52 members opposed it.
The parliament considered thousands of amendments presented by the opposition throughout the night from Monday to Tuesday. All were rejected in a vote on Tuesday.
The proceedings were accompanied by demonstrations from Netanyahu's critics, who also blocked coalition members' access to the building. Police arrested at least six people.
This is a war budget. A victory budget
"This is a war budget. And with God's help, it will also be the victory budget," which meets all the needs of the military and society, assured Finance Minister Bezalel Smotrich.
The government, assessed Yair Lapid, the leader of the largest opposition group, Yesh Atid, is "stealing the money and the future of the Israeli middle class, the productive public, who works, pays taxes, enlists in the army, whose children enlist in the army."
He accused the government of allocating funds at the expense of the middle class and reservists to those "who do not work and do not enlist in the army."
Record-breaking 110 billion shekels
The fragmented Netanyahu-led coalition is the most right-wing cabinet in Israeli history, consisting of religious and national profile groups. The government previously approved the allocation of 5 billion shekels (approximately 1 billion GBP) to meet coalition partners' needs. The money will largely fund yeshivas, religious schools where young men study without working during this time, and ultra-Orthodox Jewish (Haredim) institutions, who do not wish to serve in the Israeli army.
The chairman of the opposition party Yisrael Beiteinu, Avigdor Lieberman, emphasised that the government did not reduce spending for the coalition partners, although it simultaneously made other cuts while increasing VAT, National Insurance contributions, and other levies.
The approved budget foresees spending 756 billion shekels (approximately 160 billion GBP), a total more than one-fifth greater than in 2024. A record 110 billion shekels (approximately 23 billion GBP) is allocated for defence.
Anti-government demonstrations
For almost a week, massive anti-government demonstrations have been taking place throughout Israel. Protesters accuse the government of stepping away from democracy by taking control of independent institutions like the special services and the prosecution, and of politically exploiting the war in the Gaza Strip.
Protesters believe Netanyahu decided to return to war, disregarding the fate of the 24 remaining hostages held by Hamas. There are accusations that he made this decision to ensure a stable majority and government survival. The ceasefire with Hamas was opposed by the radical Jewish Power party, which left the shaky coalition after its conclusion but returned to the government following the resumption of fighting. The next parliamentary elections are expected to be held in 2026.
Netanyahu published a video in the evening, emphasising that the budget was passed by a significant majority, contrary to the hopes of Israel's enemies, such as Hamas and Iran, who counted on the cabinet's collapse.
