Knesset Approves NIS 727 Billion Budget Expansion Amid Israel-Hamas War

As the Israel-Hamas War continues with no immediate end in sight, the Knesset has approved a major NIS 727.4 billion budget expansion for the fiscal year 2024. The budget proposal, passed in its first reading with 57 votes in favor and 51 against, reflects the growing financial demands caused by the prolonged conflict. The bill will now move to the Finance Committee for further review.

The expanded budget allocates NIS 524.32 billion for regular government operations, ensuring that essential public services remain funded during the crisis. Additionally, NIS 203.08 billion has been earmarked for the Development and Capital Account, which will cover long-term infrastructure investments and other critical projects aimed at stabilizing the economy.

This new budget is the second adjustment for the 2024 fiscal year. The first increase, which was based on the assumption that the intensity of the conflict would decrease by June 2024, has proven inadequate due to the ongoing war. The government identified an urgent need for increased civilian expenditures, particularly to support affected communities and address the broader economic impact of the conflict.

However, not all voices in the Knesset were in favor of the new budget. Opposition leader Yair Lapid raised serious concerns about the government’s financial planning, warning, “The government presents this budget supplement with good intentions, but they don’t tell you where the money is coming from.” He emphasized that much of the financial burden will likely fall on reservists and the middle class, accusing the government of failing to safeguard the country’s economic future.

Benny Gantz, leader of the National Unity party, echoed Lapid’s concerns. Gantz criticized the government for increasing the deficit and putting additional strain on Israeli citizens. “The very fact of opening the budget a second time is a failure,” Gantz remarked, while also praising the resilience of the Israeli people for sustaining the economy through their volunteerism and determination.

Despite the criticisms, the new budget reflects the government’s attempt to address the escalating costs of the war while continuing to invest in Israel’s long-term development. The coming weeks will reveal how the budget will be refined and whether the government can balance the immediate demands of the conflict with the country’s broader economic needs.