By Pesach Benson • 24 March, 2025
Jerusalem, 24 March, 2025 (TPS-IL) — After a marathon 13-hour debate, the Knesset Finance Committee approved the 2025 state budget on Sunday night, paving the way for its final votes in the plenum. The budget, totaling approximately NIS 620 billion ($166.6) will now undergo its second and third readings in the coming days.
The government remains under pressure to finalize the budget before the legal deadline at the end of the month. By law, the Knesset must pass a budget by March 31 or the government will automatically fall, triggering national elections.
“This is not an easy budget in a difficult time. We did everything we could to mitigate some of the burdens on citizens, including reducing many of the tax increases the Treasury originally proposed,” said committee chairman MK Moshe Gafni.
The defense budget remains the largest component, standing at NIS 109.8 billion ($29.5 billion). The Ministry of Education follows with an allocation of approximately NIS 92 billion ($24.7 billion), while the Ministry of Health is set to receive around NIS 59 billion ($15.8 billion).
The budget debate was marked by fierce opposition criticism, particularly over a lack of transparency regarding coalition funds and undisclosed expenses related to the family of Prime Minister Benjamin Netanyahu.
“Every year, coalition funds have been clearly attributed to specific purposes. This year, for the first time, we are being denied access to this information. The refusal to disclose these details sets a very dangerous precedent,” said MK Vladimir Belyak.
A representative from the Ministry of Finance defended the non-disclosure, arguing that the funds in question had not yet been assigned to specific projects. “There is no final government decision on these allocations, so they do not appear in the documents distributed to MKs,” the official explained. Attorney Shlomit Erlich, the committee’s legal advisor, confirmed that no formal agreements had been made regarding these funds.
Further controversy arose over a reported NIS 700 million ($188 million) earmarked for Orthodox Haredi institutions, a reserve fund that opposition members claimed was designed to circumvent potential legal challenges. MK Orit Farkash HaCohen asserted, “They are setting aside 700 million shekels for yeshiva students because they know the current law may be overturned soon.” She was referring to efforts to draft yeshiva students into the army.
Coalition members rejected allegations of financial secrecy. MK Ofir Katz, said “There are no secret tables. This is a fact. It seems difficult for some to accept, but there is no hidden information.”
Beyond coalition funding, opposition MKs also pressed for details on the expenses of Prime Minister Benjamin Netanyahu and his family, including security costs. However, officials from the Prime Minister’s Office maintained that, by order of the Shin Bet, such details could not be disclosed even in a classified setting.
Opposition voices remained skeptical of the budget’s economic impact. “This is a socially and morally harmful budget,” Belyak warned. “Credit rating agencies are closely watching, and if the Finance Minister’s policies continue on this path, Israel may face another credit downgrade. We may also see tax increases before the year is out.”
With the Finance Committee’s approval secured, the Knesset will move forward with an expedited process to pass the budget into law. Debate in the plenum is expected to begin on Monday evening, with deliberations projected to last more than 12 hours, potentially concluding by midday Tuesday.
