Israel Presents to the Knesset Record 582 Billion Shekel State Budget to Knesset After Delay

 Israeli government tabled the largest state budget in the country's history, totaling 582 billion shekels, before the Knesset, 21 days after its initial approval. This budget marks a significant increase of 68 billion shekels compared to the earlier 2024 budget set in May 2023. Notably, it includes substantial cuts across all government ministries except for defense and yeshiva budgets.

The delay in presenting the budget stemmed from Finance Minister Bezalel Smotrich's efforts to secure legal approval for incorporating coalition funds into the budget, particularly those earmarked for ultra-Orthodox educational institutions. This move drew criticism from the Deputy Attorney General, leading to a delayed submission.

The proposed budget entails a notable increase in the defense budget to 99 billion shekels and introduces tax hikes for the public, including a one percent rise in value-added tax to 18% and a 0.15% increase in the health tax to address escalating healthcare costs.

Despite opposition from some quarters, additional funds were allocated for yeshiva education, ultra-Orthodox education, and various religious services. Social welfare programs, such as food cards for vulnerable populations, also received attention.

The delay incurred a reprimand from Deputy Attorney General Meir Levin, highlighting the government's violation of the law. Nonetheless, legal clearance was secured, enabling the budget's submission to the Knesset.

While the budget faces a tight timeline for approval, with only 12 days allotted for committee review before the February 19 deadline for final voting, failure to meet this deadline could trigger budget cuts across ministries.

The budget proposal forecasts a record deficit of 6.6% for 2024 and a debt-to-GDP ratio increase from 60% to 68%. Despite challenges and controversies surrounding its presentation, the budget represents a pivotal financial roadmap for Israel in the coming year.