Finance Minister Allocates NIS 13.5 Billion for 2023 War Budget - Coalition Funds Diverted

In a crucial move to finance ongoing military operations, Finance Minister Bezalel Smotrich has announced the addition of NIS 13.5 billion to the 2023 budget. The decision, revealed in a letter to the Ministry of Finance, outlines a strategy to redirect a portion of coalition funds to support the war effort.

Following a recent meeting at the Ministry of Finance, a "new budget" has been proposed for the remaining seven weeks of the current fiscal year. The majority of the additional funds required for government support in the war economy will be obtained through what is termed as "changing the sources and uses for the benefit of the war and the home front."

Despite initial resistance to diverting funds from coalition agreements intended for raising teachers' salaries in the unofficial ultra-Orthodox sector, the Minister of Finance outlined a plan to cut NIS 1.6 billion from the remaining NIS 2.5 billion allocated for coalition funds in 2023. An additional NIS 1.7 billion will be cut from ministry budgets, half a billion from KKL-Junk, and another 600 million from sources pending approval.

The treasury's decision implies a 30% transfer of funds within the original coalition agreements, meeting the demands of ultra-Orthodox parties. Minister Smotrich confirmed a NIS 250 million cut from the planned grant to the Abrakhs until year-end.

The bulk of the required NIS 13.5 billion will be sourced from increased government spending. Meanwhile, the Knesset has approved a government bill to raise the minimum compensation for reservists serving in the Iron Swords War, allocating an additional NIS 9 billion to the budget. An extra NIS 22 billion will be directed to the defense budget for combat expenses.

Post-amendments to the 2023 budget, preparations for a new budget and economic plan for 2024 are underway, emphasizing new priorities and accelerated reforms to restore economic growth.

In response to ongoing military engagements, the committee has extended the curfew's validity by another month, ensuring stability for reservists and avoiding repeated extensions.

MK Moshe Saada advocated linking the salary of reserve servants to the average wage, highlighting the erosion of their compensation over time. The committee expressed support for this initiative and will collaborate with government ministries to implement necessary changes.

MK Moshe Tor Paz proposed an incentive for extended reserve service, suggesting an extra day's salary for every ten days served. While the Ministry of Defense already has mechanisms in place for financial rewards, further adjustments may be considered if deemed necessary during continued fighting.

As the government and Knesset finalize budget amendments, the nation prepares for a challenging period ahead with a focus on sustained military operations and economic recovery.

Photo: Knesset spokeswoman, Dani Shem Tov