Ministry of Justice Clashes with Ministers Over Coalition Funds During the Gaza Conflict

In a dramatic turn of events, the Ministry of Justice issued a stern ultimatum to government ministers this week, demanding that they personally request approval for coalition funds, rather than relying on their officials. This bold move comes in the midst of ongoing fighting in Gaza, despite Finance Minister Bezalel Smotrich's public announcement of his intention to freeze these funds to allocate resources to the war effort.

The ministry's frustration is well-founded, with finance and justice ministry desks inundated with requests to continue disbursing coalition funds totaling hundreds of millions of shekels during the two weeks of the conflict. These requests, ostensibly of a technical-legal nature, raise suspicions that ministers are exploiting the situation to advance their political interests and deplete the public purse to cater to their political base.

Despite Minister Smotrich's recent declaration of his plan to divert non-essential budgets toward the war effort, coalition funds appear to be advancing, even though they were expected to be put on hold. An estimated 1 billion shekels for 2023 and an additional 6 billion shekels for 2024 remain unallocated and earmarked for coalition agreements.

Minister Smotrich's directive, while seemingly straightforward, presents a challenge in halting funds already allocated but not yet spent. The control rests with the ministries themselves, making inter-ministerial cooperation and the vigilance of ministry accountants essential to prevent the expenditure of these funds.

Recent revelations exposed the porous nature of the network tasked with stopping the implementation of already allocated funds. Ministries, influenced by their ministers, have been striving to eliminate the bureaucratic and legal barriers that have delayed the disbursement of hundreds of millions of shekels in coalition funds. This push to expedite approvals often occurs quietly through technical requests by junior officials.

Among the funds that have been allocated but not yet fully utilized is a significant budget allocation for substantial salary increases for teachers in ultra-Orthodox education networks, part of the New Horizon salary agreement. This allocation, when fully matured, amounts to roughly a billion shekels annually, and it has come under scrutiny for its questionable origins.

The power to rectify this situation rests with Finance Minister Smotrich. While there has been no explicit directive to freeze all coalition funds, his vague wording leaves room for interpretation. Smotrich's refusal to commit to canceling these funds indicates that some may be considered necessary.

It is anticipated that Smotrich may employ an accounting technique known as the "box" exercise, in which unusual expenses are recorded separately to mask the actual state of the budget. This could potentially be used to maintain coalition funds, even while war expenses are segregated to demonstrate prudent fiscal management.

Ultimately, the fear is that the burden of the war will fall on the shoulders of the Israeli taxpayer, jeopardizing the state budget's capacity to fully rehabilitate those affected by the conflict. The paramount concern appears to be the survival of the coalition and the continuation of these controversial funds, rather than the welfare of the nation during this tumultuous time.