Israeli Government Secures Contentious 2-Year Budget Approval Amid Protests

Israeli Prime Minister Binyamin Netanyahu’s government survived a test of unity in the early hours of Wednesday, passing the 2023 and 2024 budgets, amounting to nearly NIS 998 billion ($270 billion), after months of internal disputes that threatened the coalition. The 64-55 vote along coalition lines marked a significant victory for Netanyahu, extending the life of his government for another 18 months. The Knesset’s approval arrived just days ahead of the May 29 deadline to pass a budget or call new elections.

However, the passage was not without controversy. Thousands protested in Jerusalem against the alleged misuse of state funds, particularly grants to the ultra-Orthodox community, which encourages men to avoid employment and military service, in favor of full-time religious studies. The new budget increased funding for full-time ultra-Orthodox yeshiva students who are exempt from military service, and for ultra-Orthodox schools that do not teach the core curriculum of subjects such as math, English, and science, which would prepare students for participation in the workforce. Opposition Leader Yair Lapid denounced the budget as disastrous for the economy and society. “This budget is reckless, it’s a disaster for the Israeli economy and for Israeli society, and it violates the social contract with the State of Israel that we, our children, and our children’s children will pay for,” he said.

Despite the criticism, Finance Minister Bezalel Smotrich lauded the budget for providing “stability and certainty” to the economy.