Israeli Knesset approves state budget in final vote

JERUSALEM /ISTANBUL

The Knesset (Israel’s parliament) passed the 2025 state budget on Tuesday, in a major victory for the Benjamin Netanyahu government.

The 755.9 billion shekels ($206.4 billion) budget was approved in the third and final reading by 66-52 votes, the Knesset said in a statement.

The Israeli government had to pass the budget before the end of March or it would collapse automatically and go to early elections.

According to the public broadcaster KAN, the defense allocations reached 109.8 billion shekels ($30 billion) in the state budget, followed by the education allocations, which stood at 92 billion shekels ($25 billion).

“The budget has everything we need to win on the front and on the home front. We all approached this budget with a great sense of mission and responsibility,” far-right Finance Minister Bezalel Smotrich said.

“We promoted measures that will support growth and allow the Israeli economy to maintain its strength and continue to prosper. This is a war budget and, God willing, it will also be the victory budget.”

The passage of the state budget, however, drew fire from the Israeli opposition.

“All prices have increased. VAT has increased, National Insurance payments have increased, water, electricity, and property taxes have increased – everything has increased…but they haven’t cut a single penny in coalition funds,” said Avigdor Lieberman, leader of Yisrael Beytenu Party.

Benny Gantz, who heads the centrist National Unity Party, also criticized the budget.

“This budget will be felt by all citizens of Israel all year long, and you will ultimately pay the bill. Your detachment and arrogance will come back to you with interest,” he said.

Ahead of Tuesday’s vote, scores of protesters gathered outside the Knesset building in west Jerusalem to protest the sacking of the Shin Bet chief, Ronen Bar, and the withdrawal of confidence from Attorney General Gali Baharav-Miara.

Police said six protesters were arrested for violating public order and blocking traffic near the government headquarters in west Jerusalem.

The passage of the state budget comes as the Israeli army continued a brutal military campaign in Gaza since October 2023, killing more than 50,100 people, injuring over 113,700 others, and leaving the enclave in ruins.

The International Criminal Court issued arrest warrants last November for Israeli Prime Minister Benjamin Netanyahu and his former Defense Minister Yoav Gallant for war crimes and crimes against humanity in Gaza.

Israel also faces a genocide case at the International Court of Justice for its war on the enclave.