Israeli Government Dodges Yet Another Election as Budget Squabble Resolves
In a deft maneuver that steered clear of another all-too-familiar election, the Israeli government has resolved a brewing budget crisis. The Hassidic Agudat Yisrael faction of the United Torah Judaism (UTJ) party and the Likud party agreed on Monday to an additional NIS 250 million ($76 million) funding for Agudat Yisrael’s yeshivas.
This agreement ends a weeklong standoff ignited by Agudat Yisrael’s demand for NIS 600 million ($183 million) to retroactively cover its educational costs since early 2023. However, the resultant education is not expected to generate a future tax base, but rather perpetuates a cycle of state dependency for yeshiva students, ensuring the public purse remains their primary benefactor.
Finance Minister Bezalel Smotrich had initially declined to reopen budget discussions, sparking concerns of a governmental collapse. The deal now offers a one-time stipend for yeshiva students for January-June 2023 without revisiting the budget, though the funds’ origin remains mysterious.
The agreement stipulates any further demands from Agudat Yisrael be met through UTJ’s own coalition funds, crucially paving the way for national budget approval by May 29 and sparing Israel its annual round of elections.
