Israeli Parliament Clears 2025 Budget Framework, Easing Threat of Government Collapse
Israel’s parliament took a key step toward finalizing the country’s 2025 state budget on Thursday, voting to approve a framework that, if fully enacted by the end of the month, will stave off the risk of the government falling.
Finance Minister Bezalel Smotrich described the new budget as both a “wartime budget” and a “budget of hope,” noting that it includes the necessary funds to maintain military readiness while also supporting business owners, reconstruction efforts, and Israel’s broader economic growth. The plan raises the deficit target to a maximum of 4.9% of GDP—up from an earlier 4.4% estimate—and provides for 619 billion shekels (about 169.19 billion USD) in spending, excluding debt servicing.
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“This is a wartime budget, but also a budget of hope — one that provides the military and the security system with all necessary resources to defeat the enemy while supporting reservists, business owners, reconstruction efforts in the north and south, and Israel’s economic growth,” Smotrich said.
Israel narrowly avoided a political crisis when the measure passed its first vote in December, overcoming opposition from a far-right faction demanding the dismissal of Attorney General Gali Baharav-Miara. Leaders of ultra-Orthodox parties also threatened to withhold support unless military service exemptions for religious students were codified and additional funds earmarked for religious seminaries.
Parliament voted 62-50 on Thursday, with one abstention, in favor of the budget framework. The plan will now return to Israel’s parliamentary finance committee, where further debate is scheduled for Sunday before moving to a final series of votes. Prime Minister Benjamin Netanyahu’s coalition hopes to secure full approval by the end of March—a deadline mandated by law to avoid triggering snap elections.
